Expedia Inc (EXPE.O), the world's largest online travel services company, reported smaller-than-expected quarterly revenue due to higher promotions for its member loyalty program and discounts to promote new hotel listings.
Shares of the company, which owns Expedia.com, Hotels.com, Hotwire and other brands, were down 5.4 percent in extended trading on Thursday.
Expedia said revenue per room night fell 5 percent in the second quarter ended June 30 and is expected to decrease through the year 2016.
The recent spate of attacks in Europe have had an impact on bookings, Chief Financial Officer Mark Okerstrom told Reuters in an interview.
"Travel demand to France is a particular challenge. With each subsequent event we have seen a worsening of the trend," Okerstrom said.
On the bright side, Okerstrom said bookings out of the United States into London accelerated once the pound fell against the dollar following Britain's vote on June 23 to leave the European Union.
The value of bookings on Expedia sites jumped 25 percent to $18.86 billion in the three months ended June 30.
Revenue rose to $2.20 billion from $1.66 billion, but fell slightly short of analysts average estimate of $2.25 billion, according to Thomson Reuters I/B/E/S.
Net income attributable to Expedia fell to $31.6 million, or 21 cents per share, from $449.6 million, or $3.38 per share, a year earlier, when it recorded a $395 million after-tax gain related to the sale of eLong.
Excluding items, it earned 83 cents per share. Analysts on average were expecting a profit of 78 cents per share.
Expedia and the founders of Trivago have agreed to explore the feasibility of an IPO of Trivago shares, Expedia said.
Shares of the Bellevue, Washington-based company had fallen 4.1 percent this year through Thursday's close.
By: Reuters.
Reporting: Arunima Banerjee (Bengaluru).
Editing: Don Sebastian and Savio D'Souza.
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