article on expedia

This article was about expedia who do the same as webjet in the USA. I think it outlines the potential of their business. hope someone finds it useful.
Increased Bookings Help Expedia's, Sabre's 3Q Results
03 Nov 05 18:52
By Desiree J. Hanford
Of DOW JONES NEWSWIRES
Increased bookings at home and abroad helped the third-quarter results of online travel companies Expedia Inc. (EXPE) and Sabre Holdings Corp. (TSG).
Expedia said late Thursday it earned $82 million, or 23 cents a share, in the period, up from $58 million, or 17 cents a share, a year earlier as revenue rose 16% to $584.7 million. Sabre, which owns the Travelocity Web site, posted a net profit of $58.5 million, or 45 cents a share, down from $67 million, or 49 cents a share, last year, but revenue rose 29% to $700 million. The 2004 figure benefitted from a one-time $18 million tax gain.
The performance of the companies exceeded expectations of market participants, who were pleased to see solid growth in bookings. The results came one day after competitor Priceline.com Inc. (PCLN) reported strong third-numbers and helped spark renewed optimism about the potential for the online travel-services business.
Shares in Expedia were up 7.7% in after-hours trading to $22.30, after gaining 6.8% during regular hours. Priceline advanced 26% to $24.60 during the regular session, while Sabre tacked on 3.3% to $20.65.
"There's been this overwhelming belief that travel intermediaries no longer have value and that's just not the case," Legg Mason Wood Walker Inc. analyst Scott Devitt said. "And Priceline yesterday, Sabre this morning and Expedia tonight are proving there is value in the online travel intermediary."
For Expedia, which also runs the hotels.com site, the third-quarter earnings statement represented its first as an independent public company. Based in Bellevue, Wash., it was spun off of New York-based IAC/InterActiveCorp (IACI) in August.
Gross bookings at Expedia totaled $3.94 billion, up 21% from a year earlier. Domestic bookings rose 16% and international bookings increased 39%. Despite the increases, Expedia said that hurricanes and terrorist activity hurt the results.
Gross bookings at hotels.com are showing "solid trends" so far during the current quarter, Expedia Chief Executive Dara Khosrowshahi said Thursday during a conference call.
Gross travel booked on Sabre's Travelocity site was $2.15 billion, up from $ 1.22 billion in the third quarter of 2004. North America bookings were $1.59 billion, a 30% increase, while gross travel booked in Europe was $564 million. Sabre purchased lastminute.com, a European online travel company, in July.
Sabre expects fourth-quarter revenue between $619 million and $638 million.
"Travelocity demonstrated a strong quarter, even without the added upside provided by the European operations," Devitt said in a research note. "We continue to believe that Travelocity is building a premier brand and is leveraging its experience in the overseas markets."
Legg Mason analyst Devitt doesn't own shares of Expedia or Sabre, and the firm doesn't do investment banking work for the companies. Legg Mason owns 1% or more of each company's shares.
-By Desiree J. Hanford, Dow Jones Newswires; 312-750-4135; desiree.hanford@ dowjones.com

(END) Dow Jones Newswires
11-03-05 1852ET