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Priceline 1Q Profit Falls on Acquisitions
Monday May 9, 4:58 pm ET
Priceline Profit Falls in First Quarter on Acquisition Charges; Travel Bookings Up 41 Percent


NORWALK, Conn. -- Priceline.com Inc. on Monday said its profit fell in the first quarter as a series of acquisitions to expand the online travel services company offset the impact of a 41 percent rise in travel bookings.
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The company's shares fell $1.49, or 5.6 percent, to $25.15 in after-hours trading after rising 84 cents, or 3.3 percent, to close at $26.64 on the Nasdaq Stock Market. The reanbings report came after the close.

Quarterly income was $4.1 million, or 10 cents per share, for the three months ended March 31 compared with $4.3 million, or 11 cents per share, a year earlier. Pro forma net income for the quarter was $8.4 million, or 21 cents per share.

Revenue during the period was $233.4 million, up from $224.1 million a year ago. On average, analysts surveyed by Thomson Financial earnings of 20 cents per share on revenue of $240.3 million.

Priceline said first-quarter net income was hurt by previously disclosed non-cash amortization expenses associated with the acquisitions of Travelweb and Active Hotels. Results during the quarter included operating results of both companies.

Gross travel bookings for the quarter -- the total dollar value, including taxes and fees, of all travel services purchased by consumers -- grew year-over-year to $507 million. The company said that bookings have more than doubled in the last two years.

Priceline said it expects to report second-quarter earnings per share between 25 cents and 31 cents, or 34 cents to 40 cents excluding items. Revenue is expected to grow by about 5 percent year-over-year. Analysts forecast earnings of 37 cents per share on revenue of $285.6 million.

"Our guidance assumes only a modest positive contribution from the new hotel service, as it is too soon to predict the longer-term results of the relaunch and new advertising," President and Chief Executive Jeffery H. Boyd said in a statement. "That said, we are comfortable with the current (Thomson Financial) analysts consensus estimates of $1.20 per diluted share of pro forma net income for full-year 2005."





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