Key Points
- Booking Holdings recorded a $900 million revenue reduction and a $100 million accrued loss tied to a potential FTC complaint against Priceline, and said the FTC may seek restitution and penalties above $1 billion.
- Net income fell 1% to $2.7 billion and revenue fell 1% to $8.9 billion, while room nights grew 7%, up from 5% growth in the second quarter.
- CFO Ewout Steenbergen called the fourth-quarter travel environment “mixed,” citing moderating international demand, Middle East disruptions, higher airfares, and localized unrest in some European cities, while domestic and shorter trips hold up.
Summary
Booking Holdings took a $900 million revenue reduction and accrued a $100 million loss in the third quarter tied to a potential Federal Trade Commission complaint against its Priceline brand, which the company said is in discussions with the FTC to resolve. In a quarterly filing Tuesday, Booking said the FTC may seek restitution and penalties exceeding $1 billion, plus litigation and similar claims in other jurisdictions, and that litigation remains possible. The company disclosed in the second quarter that the FTC intended to file a complaint against Priceline and a B2B affiliate partner over disclosures, fees, customer support, and billing practices; Reuters reported last month, citing anonymous sources, that the partner is Guest Reservations. The FTC matter runs alongside a European Commission investigation that has called Booking.com’s practices for combating fake listings and phishing “substandard.” Operationally, net income fell 1% to $2.7 billion on revenue of $8.9 billion, also down 1%, while room nights rose 7%, accelerating from 5% in the second quarter. CFO Ewout Steenbergen described the fourth-quarter travel environment as “mixed,” with moderation in international demand and domestic travel holding up as travelers take shorter trips closer to home. Connected trip transactions — bookings across two or more verticals — grew almost 20% year over year and made up a low double-digit share of Booking.com transactions.
