Expedia, the Bellevue online travel giant, saw its revenue increase 18 percent during the fourth quarter as it showed increases in hotel room nights and improvements in advertising and media revenue. Revenue for the fourth quarter was $1.15 billion, up from $974.9 million in the same period in 2012. Adjusted net income came in at $125.1 million, up 41 percent from $88.9 million in the same period in 2012.
Analysts had expected revenue of $1.13 billion. Shares of Expedia jumped more than 12 percent in after hours trading. They are down three percent in the past 12 months.
In a conference call with analysts, CEO Dara Khosrowshahi noted that the company is “riding the wave of travel growth,” pointing out that the travel industry appears to be immune to some of the variability in the overall economy. He also said that the company’s air business is “starting to work.”
“It is a good hotel story, and it is a good air story,” said Khosrowshahi, who thanked employees for a “strong finish to the year.” The company saw a 25 percent increase in hotel room nights stayed, driving worldwide hotel revenue up 14 percent. Meanwhile, worldwide air revenue increased 17 percent.
Hotel revenue accounted for 71 percent of revenue in the fourth quarter, while air accounted for eight percent.
For the year, Expedia saw revenue in 2013 of $4.7 billion. That compared to revenue of $4 billion in the previous year.