Expedia reports bigger loss, suspends dividend as coronavirus impacts travel
Expedia said conditions are improving as cancellations stabilized and lockdowns ease
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Expedia reported a larger-than-expected loss in the first quarter as the coronavirus imposed stay-at-home guidelines took a huge toll on the travel industry.
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Expedia's latest cost saving move is suspending its 34 cent quarterly dividend at least until the current economic and operating environment improves.
The company did say during an earnings conference call that conditions are improving as cancellations stabilized and lockdowns ease, sending shares higher in extended trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| EXPE | EXPEDIA GROUP INC. | 117.44 | -18.65 | -13.70% |
Expedia on Wednesday reported a loss of $1.3 billion in its first quarter.
On a per-share basis, the Seattle-based company said it had a loss of $9.24. Losses, adjusted for non-recurring costs and stock option expense, were $1.83 per share.
The average estimate of nine analysts surveyed by Zacks Investment Research was for a loss of $1.24 per share.
“Like all travel companies, Expedia Group suffered a major reduction in business since the onset of COVID-19. Fortunately, we were ahead of the game having implemented cost savings measures earlier this year, and with the added pressure from COVID-19 we accelerated and expanded our ambition on improving our long-term cost structure,” said Vice Chairman and CEO Peter Kern. “We also raised significant additional capital, to further strengthen our liquidity position as we navigate this disruption and position the business for recovery.”
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The online travel company posted revenue of $2.21 billion in the period, which beat Street forecasts.