The Priceline Group Inc (PCLN) has reported a 33.64 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $673.91 million, or $13.47 a share in the quarter, compared with $504.27 million, or $10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $710.85 million, or $14.21 a share compared with $540.65 million or $10.73 a share, a year ago.
Revenue during the quarter grew 17.42 percent to $2,348.43 million from $2,000 million in the previous year period. Gross margin for the quarter expanded 296 basis points over the previous year period to 96.93 percent. Total expenses were 66.35 percent of quarterly revenues, down from 67.10 percent for the same period last year. This has led to an improvement of 76 basis points in operating margin to 33.65 percent.
Operating income for the quarter was $790.36 million, compared with $657.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $868.62 million compared with $714.65 million in the prior year period. At the same time, adjusted EBITDA margin improved 125 basis points in the quarter to 36.99 percent from 35.73 percent in the last year period.
"The Priceline Group finished 2016 with a strong 4th quarter, reporting accelerating growth in hotel room nights booked, with solid organic growth and attractive profit margins," said Glenn Fogel, chief executive officer of The Priceline Group. "We also recorded accelerating growth in room nights booked for the full year 2016 over 2015, which reflects the benefits of our scaled accommodations platform and strong execution by our global teams."
The company forecasts diluted earnings per share to be in the range of $7.50 to $7.90 for the first-quarter. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $8.25 to $8.65 for the first-quarter.
Operating cash flow improves significantly
The Priceline Group Inc has generated cash of $3,924.70 million from operating activities during the year, up 26.51 percent or $822.47 million, when compared with the last year.
The company has spent $3,333.30 million cash to meet investing activities during the year as against cash outgo of $3,894.53 million in the last year.
Cash flow from financing activities was $57.74 million for the year as against cash outgo of $730 million in the last year period.
Cash and cash equivalents stood at $2,081.08 million as on Dec. 31, 2016, up 40.87 percent or $603.81 million from $1,477.26 million on Dec. 31, 2015.
Working capital increases
The Priceline Group Inc has recorded an increase in the working capital over the last year. It stood at $2,542.85 million as at Dec. 31, 2016, up 20.29 percent or $428.92 million from $2,113.93 million on Dec. 31, 2015. Current ratio was at 1.89 as on Dec. 31, 2016, down from 2.47 on Dec. 31, 2015.
Debt moves up
The Priceline Group Inc has witnessed an increase in total debt over the last one year. It stood at $7,138.26 million as on Dec. 31, 2016, up 15.91 percent or $979.81 million from $6,158.44 million on Dec. 31, 2015. Short-term debt stood at $967.73 million as on Dec. 31, 2016. Total debt was 35.98 percent of total assets as on Dec. 31, 2016, compared with 35.35 percent on Dec. 31, 2015. Debt to equity ratio was at 0.73 as on Dec. 31, 2016, up from 0.70 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 14.31 for the quarter from 15.03 for the same period last year.
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