CHICAGO — Orbitz Worldwide narrowed its loss in the first quarter as the online travel agency reported growth in its European-focused travel business and stronger demand for hotel and vacation packages.
Shares were up 4.6 percent to $4.08 shortly after market open as the loss came in lighter than Wall Street analysts expected.
The company said Thursday that its e-bookers business, which focuses on European travelers, recorded a 33 percent jump in the number of hotel-room nights booked in the first quarter.
Europe, though plagued by a sovereign-debt crisis and economic uncertainty, nonetheless has been a growth driver for Orbitz and other online travel companies as their US businesses mature.
Looking ahead, the company predicted revenue growth of four percent to eight percent for the year, mostly ahead of the four percent growth currently expected by analysts polled by Thomson Reuters. The company also forecast current-quarter revenue of $205 million to $211 million, bracketing the $208 million analysts currently anticipate.
Orbitz reported a first-quarter loss of $6.5 million, or six cents a share, compared with a year-earlier loss of $10.9 million, or 11 cents a share. Analysts polled by Thomson Reuters expected a loss of eight cents a share.
Revenue rose 2.6 percent to $189.8 million, reflecting increased hotel and vacation package revenue. The company’s forecast in February called for revenue of $187 million to $193 million, which was below analyst estimates at the time.
Gross bookings rose 5.6 percent to $3.14 billion.
To read more, go to MarketWatch