Accommodation

Booking Holdings reduces profit forecast for Q3

Posted by Ben Ireland on
Booking Holdings reduces profit forecast for Q3

Booking Holdings Inc. saw its shares drop 7% this week after it forecast its third-quarter earnings would be significantly below analysts’ average estimates.

The online travel giant behind Booking.com said profit excluding some costs in the current period would be between $36.70 and $37.70, less than Wall Street’s estimate for $39.80.

The third quarter includes most of the US school holidays and summer travel season.

Booking Holdings Inc.’s second quarter profit, announced this week, were adjusted to $20.67 a share from $17.37.

Total revenues for the second quarter were $3.5 billion and net income was $977.4 million, a 36% increase on 2017.

“Booking Holdings achieved strong results for the second quarter,” said chief executive Glenn Fogel.

“We will continue to execute on our long-term strategy to drive profitable growth and invest in capabilities to increase customer loyalty and build a larger direct business.”

The amount of Booking Holding’s budget spent on TV and other brand advertising fell in the second quarter when compared to last year.

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