The Priceline Group Inc (PCLN) has reported 21.69 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $455.62 million, or $9.11 a share in the quarter, compared with $374.42 million, or $7.47 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $494.07 million, or $9.88 a share compared with $460.98 million or $9.20 a share, a year ago. Revenue during the quarter grew 12.63 percent to $2,419.40 million from $2,148.12 million in the previous year period. Gross margin for the quarter expanded 247 basis points over the previous year period to 96.48 percent. Total expenses were 77 percent of quarterly revenues, up from 74.38 percent for the same period last year. That has resulted in a contraction of 262 basis points in operating margin to 23 percent.
Operating income for the quarter was $556.46 million, compared with $550.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $634.76 million compared with $610.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 217 basis points in the quarter to 26.24 percent from 28.41 percent in the last year period.
"The Priceline Group is off to a strong start in 2017 with solid growth in room nights and rental car days booked," said Glenn Fogel, Chief Executive Officer of the Priceline Group. "Globally, our brands booked over 173 million room nights during the quarter, up 27% over the same period last year. Booking.com continues to extend its accommodations network, with over 1.2 million properties on its platform, including hotels, homes and apartments, up 36% over last year. Our rental car business grew rental car days by 15% over the 1st quarter of last year, an acceleration from 14% in the 4th quarter."
For financial year 2017, the company projects diluted earnings per share to be in the range of $12.55 to $13.25. For financial year 2017, the company projects diluted earnings per share to be in the range of $13.30 to $14 on adjusted basis.
Operating cash flow improves
The Priceline Group Inc has generated cash of $380.62 million from operating activities during the quarter, up 10.40 percent or $35.86 million, when compared with the last year period. The company has spent $892.81 million cash to meet investing activities during the quarter as against cash inflow of $147.28 million in the last year period.
Cash flow from financing activities was $843.40 million for the quarter as against cash outgo of $134.40 million in the last year period.
Cash and cash equivalents stood at $2,434.02 million as on Mar. 31, 2017, up 31.06 percent or $576.86 million from $1,857.16 million on Mar. 31, 2016.
Working capital increases sharply
The Priceline Group Inc has recorded an increase in the working capital over the last year. It stood at $3,739.68 million as at Mar. 31, 2017, up 29.98 percent or $862.49 million from $2,877.19 million on Mar. 31, 2016. Current ratio was at 2.15 as on Mar. 31, 2017, down from 2.45 on Mar. 31, 2016.
Days sales outstanding went down to 29 days for the quarter compared with 32 days for the same period last year.
At the same time, days payable outstanding went up to 386 days for the quarter from 233 for the same period last year.
Debt increases substantially
The Priceline Group Inc has witnessed an increase in total debt over the last one year. It stood at $8,260.64 million as on Mar. 31, 2017, up 30.68 percent or $1,939.44 million from $6,321.20 million on Mar. 31, 2016. Short-term debt stood at $974.54 million as on Mar. 31, 2017. Total debt was 37.56 percent of total assets as on Mar. 31, 2017, compared with 34.48 percent on Mar. 31, 2016. Debt to equity ratio was at 0.76 as on Mar. 31, 2017, up from 0.70 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 9.99 for the quarter from 11.74 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
