Expedia Group, Inc. (NASDAQ: EXPE) posted its second quarter 2020 earnings release.
Here the highlights ($ millions except per share amounts):
- Room night growth: Negative 81% vs. Positive12% in Q2-2019.
- Gross bookings: $2,713 vs. $28,292 in Q2-2019 - A decline of 90%.
- Revenue: $566 vs. $3,153 in Q2-2019 - A decline of 82%.
- Operating income (loss): Negative $849 vs. Positive $265 in Q2-2019.
- Diluted earnings (loss) per share: Negative $5.34 vs. Positive $1.21 in Q2-2019.
- Adjusted net income (loss): Negative $577 vs. Positive $276 in Q2-2019.
- Adjusted EPS=: Negative $4.09 vs. Positive $1.77 in Q2-2019.
For the second quarter of 2020, total gross bookings decreased 90%. In April, as COVID-19 spread globally, cancellations exceeded new bookings, and as a result, total gross bookings were negative for the month. Subsequently, as the virus was contained to varying degrees in certain countries and certain travel restrictions were lifted, the decline in new bookings slowed and cancellation rates moderated. Total gross bookings turned positive in May and the year over year decline moderated further in June, led by growth at Vrbo, Expedia Group's alternative accommodation business.
Vice Chairman and CEO, Peter Kern said the following:
“The second quarter of 2020 represented likely the worst quarter the travel industry has seen in modern history and Expedia was of course not spared. However, after the bottom of the trough in April, we saw consistent improvement in gross bookings through May and June with cancellations moderating. It is clear though that it will be a bumpy and inconsistent recovery with virus numbers being volatile around the globe and country and region restrictions changing all the time. We cannot control these short term changes in demand, so we are instead focused on our needed long term strategic work. By reshaping and simplifying our organization we have put ourselves in position to optimize our brands, our data, and our platform technologies. These changes have also allowed us to streamline our business as we look to drive significant efficiency across the company. Thanks to the tremendous efforts of our team, I am confident we are on track to come out of the pandemic in a much better place.”
Expedia's stock is down in after-hours market trading.
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