Booking Holdings takes $1 billion hit to third-quarter results linked to FTC action
BKNG•Booking Holdings recorded a $900 million revenue reduction and accrued a $100 million loss related to an FTC action, lowering third-quarter revenue 1% year over year. Revenue was $8.89 billion, while earnings per share of $4.66 beat analysts’ $4.50 estimate.
1. FTC-related charge
Booking Holdings said it recorded a $900 million reduction in revenue and accrued a $100 million loss related to an FTC action involving its subsidiary’s connection to deceptive hotel ads. The company had disclosed in August that the FTC was considering suing Priceline and an affiliate over disclosures, fees, customer support and billing practices.
2. Quarterly results
The charge contributed to a 1% year-over-year decline in third-quarter revenue to $8.89 billion. Booking reported earnings per share of $4.66, compared with $3.98 a year earlier and analysts’ expectations of $4.50.
3. Bookings and travel demand
Gross bookings grew 10% year over year and room nights increased 7%. Booking said global travel demand moderated somewhat toward the end of the quarter, reflecting softer international trends, while domestic travel remained resilient.
