Thursday, February 19, 2009

Expedia Posts Loss

Bellevue-based Expedia announced its quarterly results Thursday, posting a $2.8 billion loss for the quarter, as the firm was hit by the economic downturn. According to the firm, its gross bookings in the fourth quarter decreased by 11%, and revenues were down 7%, as both merchant hotel and air revenues decreased. The one bright spot was the firm's advertising and media revenue, which increased by 29% in the fourth quarter. The $2.8 billion loss was driven by a $3 billion writedown in goodwill that the firm said it took in Q4, due to "significant" stock market declines. In a statement, Expedia Chairman Barry Diller said "The story of 2008–and 2009 for that matter–is clearly the global recession and its impact on nearly every sector of our economy."