Shares of Expedia fell more than seven percent in after hours trading after the Bellevue online travel company reported fourth-quarter and year-end results that disappointed Wall Street. Marketing, administrative and technology expenses all rose during the fourth quarter, a period in which Expedia spun off its TripAdvisor unit into a separate company.
Selling and marketing expenses jumped 20 percent on the year due to increases in online, offline and affiliate marketing expenses and higher personnel expenses, the company said.
In total, the company posted revenues of $787 million for the fourth quarter, a seven percent increase over the same period in 2010. Adjusted net income fell to $80.6 million on the quarter, down from $83 million.
Expedia’s hotel business now accounts for 73 percent of revenue, while air comes in at just nine percent.
Expedia is now trading at $31.50 in after hours trading, down 7.8 percent. It boasts a market value of $4.5 billion,