Travel site takes early flight into profitability

Expedia expects to report an operating profit for the first time this month, over a year ahead of schedule.

By editorial@silicon.com, 17 April 2001 11:41

NEWS For the first time, more than a million customers purchased travel on Expedia sites in a single quarter - to the end of March 2001. The news is a welcome example of success in the internet market as investors demand increased concentration on profitability from dot-com companies. Richard Barton, president and CEO of Expedia, said in a statement: "Achieving profitability is a milestone that validates our business model and is the direct result of consumers embracing Expedia's technology and products." Strong seasonal travel-buying and travelers' continued rapid adoption of the internet for booking travel helped drive gross bookings to approximately $674m for the quarter, up approximately 68 per cent from the comparable period last year. The company made an operating profit of $4m before tax. Expedia will release third-quarter results on 30 April.

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