Rocket Man

8 Aug 2012 By Robert Cyran Follow @rob_cyran

The travel site’s strong growth and lock on small European hotels convinced investors it was worth as much as $38 bln. But disappointing second-quarter results from it and rival Orbitz have burst the bubble. And Priceline faces the added problem of growing competition.

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On Aug. 7 Priceline reported revenue of $1.3 billion in the second quarter, a rise of 20 percent from the same period last year. Revenue from international operations was $859 million, 40 percent higher than last year. Net income was $352 million, and earnings per share increased 37 percent to $6.88.

Rival Orbitz reported quarterly net income of $4.6 million on Aug. 8. It had earned $8.9 million for the same period last year. It also now expects revenue to rise 2 percent to 4 percent for the year. The internet travel site had previously predicted growth of 4 percent to 8 percent.

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