Quarterly Holdings reports, Booking and TripAdvisor although showed record losses exceeded the more pessimistic projections on wall Street. The company say they see some signs of recovery since April, and the U.S. Department of state cancels the global recommendation “Not to travel”.
Financial results for the quarter covering the period from April to June, received the greatest impact of the pandemic COVID-19, especially reflected in the tourism industry.
Many countries have closed their borders, the conditions of travel have become more complicated, the majority of travelers have canceled their traditional trip to the hot tourist season because of concern about possible infection with coronavirus.
The two largest American companies in the online tourism Booking Holdings (BKNG) and Tripadvisor (TRIP) reported its second quarter results. Despite record losses due to the pandemic and the continuing negative conditions, companies were encouraged by investors ‘ reports of signs of recovery in demand and expectations of further improvements.
In addition, on Thursday, the U.S. state Department, in close collaboration with the US Centers for control and prevention (CDC) has cancelled the recommendations to the citizens of the United States (imposed on 19 March) “to avoid international travel due to the global impact COVID-19”.
At the same time, some countries returned to their previous conditions for visits by foreigners, while others are more simplified procedures.
The Department official said will “provide U.S. citizens with more detailed information about the current status in each country”.
Against these news of the action by Booking and Tripadvisor rose 4% and 2.7% (respectively) before the opening of trading on Friday, despite quarterly losses.
The results of the second quarter of 2020 fin. year Booking
The Booking company that controls five major travel brands, including Kayak and Priceline reported a loss per share 2nd quarter $10,81 that better than analyst estimates of $11.70 net loss per share.
The sum of quarterly earnings (net income) fell to $122 million, compared with $979 million in the comparable quarter last year.
General Booking quarterly income fell 84% to $630 million, but surpassed the analytic estimate of $569,4 million
“We faced a challenging second quarter, and we continue to face challenges due to the impact of the pandemic COVID-19 on the demand for travel,” said Director General Booking Glenn Fogel. – “However, since April, we witnessed improving trends in booking, which is encouraging”.
The number of nights booked in hotels, and hostels declined by 87% compared to last year. Agency revenue received from commissions for booking travel, fell from $2,61 billion to $357 million
Advertising and other revenue fell from $284 million to $28 million Income received from transactions related to travel, payments of which contributed to the Booking Holdings, declined to $245 million from $959 million
The company announced earlier this week that it plans to lay off 25% of its staff, or about 4,000 people, as it seeks to restructure.
The results of the second quarter of 2020 fin. years Tripadvisor
Tripadvisor reported a loss per share of $0.76 is that worse than analyst estimates of $0.71 loss per share. Total quarterly revenue fell to $59 million from $422 million a year ago, but surpassed analysts ‘ estimates.
Despite the fact that the number of unique users Tripadvisor still significantly decreased compared to the previous year, with April, their number increased.
According to a press release, Tripadvisor, in late March to April, a significant decline in revenue compared to last year have generally stabilized at the segments and products of the company.
Tripadvisor also stated that “the company continues to believe that the business has enough liquidity to withstand a long period of declining revenues, and remains confident in its ability to honour its debt obligations in 2020 and in the future 2021.”
Since the beginning of the year shares Booking Holdings (BKNG) decreased by 14.7%, while shares of Tripadvisor (TRIP) by 29%.