Priceline Group Inc (NASDAQ:PCLN) has proved itself an exception when it declared second-quarter results today in the sense that it contradicted itself as far as the analysts’ forecasts were concerned. Although this Connecticut-based firm was just a whisker short of what the analysts had predicted, it made up for the drop in form of increased quarterly earnings. According to second-quarter financial results, profit per share earned by the company was placed at $12.51 but revenue fell short of the estimated $2.15 billion to close at $2.12 billion.
In the words of Tom White, Macquarie Capital USA Inc –
“Priceline is the best executor in the online travel space. The secret to Priceline’s success is the way they approached the international hotel market.”
Having established itself as the world leader in the travel, accommodation and transport arena, the company has been steadily moving towards its long-term objective of crossing its main competitor Expedia Inc (NASDAQ:EXPE) as far as earnings are concerned. To this effect, it has forged several partnerships over the last few years, prominent names being acquiring ownership of Kayak Software Corp at $1.7 billion and OpenTable Inc at a cost of $2.6 billion. The most recent investment interest is that of Ctrip.com International Ltd, the largest travel website in China wherein Priceline Group Inc (NASDAQ:PCLN) Inc has made known its intention of investing $500 million.
Expansion to this most populated country of the world is explained as a part of growth strategy of Priceline Group Inc (NASDAQ:PCLN) wherein the CEO Darren Huston feels that the move will make up for the abyss in the company’s representation in the Chinese market. The move has also been timed to coincide with the fact that the spending power of middle-class is on the rise in China and the Internet is upheld as the most convenient option where their travel plans are concerned.
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