Booking grows travel reservations, but an FTC matter hits reported revenue
Gross bookings rose 10%. A $900 million revenue reduction and a separate $100 million loss accrual complicate the quarter.
Booking Holdings reported 10% growth in third-quarter gross bookings and 7% growth in room nights, but reported revenue fell 1%. The travel results and the accounting effects of a regulatory matter tell different parts of the quarter.
Gross bookings reached $54.5 billion, with 345 million room nights. Revenue was about $8.9 billion, while the company's adjusted revenue, which excludes the FTC-related reduction, rose 9% to about $9.8 billion.
Booking said it recorded a $900 million reduction in revenue and accrued a separate $100 million loss related to a Federal Trade Commission matter. Those accounting entries do not mean a settlement has been completed. The company said no settlement had been agreed and litigation remained possible.
Adjusted earnings per share rose 17% to $4.66. GAAP earnings per share rose 7% to $3.61, even as net income fell 1%. The adjusted and GAAP figures should not be treated as interchangeable.
Chief executive Glenn Fogel described travel demand as resilient, while warning that geopolitical and economic uncertainty could affect near-term trends. The quarter shows continued growth in reservations, with a regulatory cost that readers should keep separate from the underlying booking volumes.
