News Column

Orbitz shares fly higher as hotel bookings grow

February 13, 2014



CHICAGO (AP) Orbitz Worldwide Inc.'s stock soared nearly 30 percent Thursday after the online travel company reported a fourth-quarter profit as customers booked more hotel rooms on its websites.

Net income rose to $5.3 million, or 5 cents per share, in the three months ending Dec. 31. That compares with a loss of $314.6 million, or $2.96 per share, in the same quarter a year prior.

Revenue rose 4 percent to $197.4 million from $189.7 million.

Analysts expected earnings of 1 cent per share and revenue of $191.2 million, according to FactSet.

For the first quarter, the company expects earnings before interest, taxes, depreciation, and amortization between $22 million and $25 million and revenue between $202 million and $207 million. Analysts expected EBITDA of 23.2 million and revenue of $207.3 million.

With $69.7 million, hotel bookings were the company's biggest money maker in the quarter.

For the new year, the company expects EBITDA to grow "in the high single digits" and revenue to grow in the "low to mid-single digits."

Besides its namesake website, Chicago-based Orbitz also owns CheapTickets, Ebookers and HotelClub.

Orbitz shares rose $2.03, or 29.4 percent, to $8.94 in afternoon trading.


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Source: Associated Press


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