Sep. 16, 2015, 3:59 PM
- Bloomberg reports U.S. regulators are set to approve Expedia's (EXPE +5.1%) $1.6B purchase of smaller rival Orbitz (OWW +6.4%). Shares of both companies have shot higher in response.
- The DOJ has been closely vetting the deal, which has sparked complaints among travel industry firms about the post-merger company's dominant U.S. online travel share and potential pricing/bargaining power.
- Update (4:26PM ET): The DOJ has released a statement confirming it won't challenge the Expedia/Orbitz deal. "The Antitrust Division investigated the concerns that have been expressed about this transaction. We took those concerns seriously and factored into our analysis all of the information provided by third parties. At the end of this process, however, we concluded that the acquisition is unlikely to harm competition and consumers."
Mar. 25, 2015, 6:12 PM
- Expedia (NASDAQ:EXPE) and Orbitz (NYSE:OWW) have both received a request for additional information related to the DOJ's antitrust review of Expedia's planned $1.6B acquisition of Orbitz. Naturally, the companies plan to "respond to the second request and to cooperate fully with the DOJ."
- The deal, together with Expedia's planned $280M acquisition of partner Travelocity, has sparked fears within the industry Expedia will have an oversized position in the U.S. online travel market, thus giving it excessive leverage with hoteliers. Priceline has a larger share overseas.
Feb. 12, 2015, 12:45 PM
Feb. 12, 2015, 9:15 AM| Feb. 12, 2015, 9:15 AM | 5 Comments
Feb. 11, 2015, 2:03 PM
- Up yesterday in the wake of strong hotel industry earnings reports, Orbitz (OWW +4.3%) is adding to its gains today. Q4 results arrive on Thursday afternoon.
- Orbitz soared last month after Bloomberg reported the online travel agency is exploring a sale and has drawn interest from various firms, but had more than given back its gains going into yesterday's trading.
Feb. 10, 2015, 10:11 AM
- Strong earnings reports from Starwood Hotels & Resorts (HOT +6.4%) and Wyndham Worldwide (WYN +7.1%) have given a boost to the lodging sector.
- The group is showing improved efficiency as demand and pricing stays ahead of the rate of capacity growth.
- Gainers: Hyatt Hotels (NYSE:H) +3.8%, Marriott International (NASDAQ:MAR) +3.6%, Intercontinental Hotels (NYSE:IHG) +2.7%, Choice Hotels International (NYSE:CHH) +2.1%, Hilton Worldwide (NYSE:HLT) +1.4%, Extended Stay America (NYSE:STAY) +1.2%, Morgans Hotel Group (NASDAQ:MHGC) +1.2%.
- Associated with the sector, Priceline (PCLN +1.8%) and Orbitz Worldwide (OWW +3.1%) are also trading above market averages.
Jan. 20, 2015, 1:47 PM
Nov. 6, 2014, 11:37 AM
- In addition to missing Q3 EPS estimates (while posting in-line revenue), Orbitz (NYSE:OWW) is guiding for 9%-10% full-year revenue growth, below a 10.7% consensus.
- The online travel agency is also initially guiding for mid-single digit 2015 revenue growth; consensus is at 6.1%. Adjusted EBITDA is expected to grow 8%-10% in 2014, and at a mid-to-high single-digit % in 2015.
- Gross bookings rose 14% Y/Y in Q3, and hotel room nights 19%. Standalone hotel revenue +26% Y/Y; standalone air +6%; vacation packages +5; ads/media +4%; everything else +17%. U.S. revenue +17% international +7%.
- Net revenue margin was flat Y/Y at 8%. Cost of revenue rose to 19.6% of revenue from 17.7% a year ago; SG&A spend fell to 28% from 30.6%, and marketing spend (much of it on Google) rose to 36.5% from 33.3%.
- Bigger rival Priceline recently provided soft Q4 guidance. Likewise, TripAdvisor recently cut its full-year click (search ad) revenue guidance, citing hotel shopper seasonality.
- Q3 results, PR
Oct. 14, 2014, 11:27 AM
Aug. 29, 2014, 4:06 PM| Aug. 29, 2014, 4:06 PM
Aug. 26, 2014, 12:32 PM
- American Airlines is pulling its fares from Orbitz's (OWW -4.2%) site, and merger partner U.S. Airways will reportedly do the same.
- Orbitz has slumped on the news. The company's standalone air revenue rose 5% Y/Y in Q2 to $71M, and accounted for 29% of total revenue. Priceline and Expedia have both been delivering faster air ticket growth.
Aug. 7, 2014, 9:15 AM
- Orbitz Worldwide (NYSE:OWW): Q2 EPS of $0.06 may not be comparable to consensus of $0.15.
- Revenue of $248.05M (+9.9% Y/Y) beats by $2.76M.
- Shares +4.3% PM.
Jul. 17, 2014, 9:46 AM
- Orbitz (OWW -4.1%) is now selling 34M shares (31% of outstanding shares) on behalf of top shareholder Travelport Limited, up from a prior 20M. The underwriter has a 5M-share overallotment option.
- The offering has been priced at $8.25, 8% below a Wednesday close of $8.97. It's set to close on July 22.
Jul. 16, 2014, 5:39 PM
Jul. 16, 2014, 4:11 PM
- Orbitz (NYSE:OWW) plans to sell 20M shares (18% of outstanding shares) on behalf of Travelport Limited through a public offering. Underwriters will have a 3M-share overallotment option.
- The company also announces it expects to report Q2 revenue of $248M, above a $243M consensus. Q2 adjusted EBITDA was ~$45M (in-line with guidance of $42M-$47M), and stayed room night growth 20% Y/Y.
- Full Q2 results arrive on Aug. 7.
Jun. 17, 2014, 11:37 AM
- Susquehanna has upgraded Expedia (EXPE +3.3%) to Positive, and UBS has started Orbitz (OWW +4.7%) at Buy.
- Susquehanna: "Our updated breakdown of EXPE's 3 main businesses (Travelocity, Trivago, and "core") shows how Street EPS numbers are 3% and 4% too low in '14 and '15 even using conservative assumptions." The firm thinks Expedia should trade at a 25% premium to the S&P 500 (up from a current 12%), given much faster EPS growth.
- UBS is optimistic about the potential of a new loyalty program to boost Orbitz's bookings. The company has been growing much slower than bigger rivals Priceline and Expedia for some time.
Orbitz Worldwide Inc is an online travel company. It provides a platform to research, plan & book a travel products & services including hotels, flights, vacation packages, car rentals, cruises, travel insurance, destination services & event tickets.
Industry: General Entertainment
Country: United States
Other News & PR