In This Article:
(Bloomberg) -- Booking Holdings Inc., the parent to travel brands such as Kayak and Priceline, delivered better-than-expected fourth-quarter results following a bustling holiday season.
Most Read from Bloomberg
-
Sorry, Kids: Disney’s New York Headquarters Is for Grown-Ups
-
Trump Targets $128 Billion California High-Speed Rail Project
Room nights booked in ther period grew 13% to 261 million, the company said in a statement Thursday, exceeding Wall Street’s estimates and its own guidance range of 6% to 8% growth. Gross travel bookings, which include taxes and fees, were $37.2 billion, compared with a projection of $34.5 billion. Adjusted earnings per share were $41.55, also well ahead of expectations.
In addition, the company authorized a share buyback program of as much as an additional $20 billion. It also issued a cash dividend of $9.60 per share, payable on March 31.
“At the start of 2025, we continue to see healthy demand for leisure travel globally,” Chief Executive Officer Glenn Fogel told analysts on an earnings call. He said the company expects to continue achieving its long-term constant-currency growth ambitions for gross bookings and revenue of at least 8% annually. Adjusted earnings per share should rise by at least 15%.
Shares of Booking rose about 2% in extended trading after the report was released.
Norwalk, Connecticut-based Booking’s latest results show travel demand remains strong even after the post-pandemic boom began tapering off last summer. The report follows similarly upbeat commentary from peers Airbnb Inc. and Expedia Group Inc., both of which posted better-than-expected holiday-season results. Last October, Booking raised its 2024 full-year guidance, pointing to strong performance in Europe and growth in Asia.
Still, the company expects the strong US dollar to weigh on future results. Currency headwinds led the company to give a lackluster forecast for some first-quarter metrics. Gross bookings and room nights will gain 5% to 7% in the period, Chief Financial Officer Ewout Steenbergen said on the call. Analysts had expected bookings to increase 7.3% and room nights to grow 7%.
Steenbergen said some of those currency effects will be offset by positive factors like higher flight ticket reservations.
Booking has particularly high exposure to currency changes, given that it generates about 90% of its revenue outside the US, according to Bloomberg-compiled data. But Airbnb and Expedia also have warned that the strong dollar will hurt their results.