Priceline Discusses Its European Travel Business (PLCN 3Q05 Conf Call Quotes)

Priceline (ticker: PCLN) CEO Jeffry Boyd explained on his Q3 earnings conference call how Priceline's European business -- particularly Central Europe -- is growing faster than its other businesses. Key quotes:

Priceline's European business had an excellent quarter with $165 million in gross bookings up approximately 76% organically versus last year, and a sequential improvement from 65% in the second quarter due to the inclusion of Bookings B.V. We experienced particularly strong growth rates in Continental Europe as compared to the more mature U.K. market where growth rates are lower and the London market was negatively impacted by the subway bombings in July. We believe there is great promise in this growing market, and Priceline Europe is in a strong position to lead with what we believe is the largest proprietory inventory and strong distribution. Despite the substantial investment being made in building European supply and distribution, the business is making a material contribution to our overall profits. We are also excited by the opportunity to integrate the Active and Bookings inventory and cross-sell European and U.S. inventory which should benefit next year's results.

Our European hotel business is different for both suppliers and consumers and those differences are driving significant growth. We are not tied by corporate ownership to any GDS, and thus… our financial future is not directly tied to the fundamental prospects for the GDS...

(Quotes are from the CCBN StreetEvents transcript.)

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