The Priceline Group Reports Financial Results for 4th Quarter and Full-Year 2016
NORWALK, CT - February 27, 2017. . . The Priceline Group Inc. (NASDAQ: PCLN) today reported its 4th quarter and full-year 2016 financial results. Fourth quarter gross travel bookings for The Priceline Group (the "Company", the "Group," "we," "our" or "us"), which refers to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by its customers, net of cancellations, were $15.1 billion, an increase of 26% over a year ago (approximately 28% on a constant-currency basis).
The Group's gross profit for the 4th quarter was $2.3 billion, a 21% increase from the prior year (approximately 24% on a constant-currency basis). International operations contributed gross profit in the 4th quarter of $2.0 billion, a 23% increase versus a year ago (approximately 26% on a constant-currency basis). Net income in the 4th quarter was $674 million, a 34% increase versus the prior year. Net income was $13.47 per diluted share, a 35% increase as compared to the prior year.
Non-GAAP net income in the 4th quarter was $711 million, a 31% increase versus the prior year. Non-GAAP net income was $14.21 per diluted share, a 32% increase compared to $10.73 per diluted share a year ago. Adjusted EBITDA for the 4th quarter 2016 was $869 million, an increase of 22% versus a year ago. The section below entitled "Non-GAAP Financial Measures" provides definitions and information about the use of non-GAAP financial measures in this press release, and the attached financial and statistical supplement reconciles non-GAAP financial information with the Group's financial results under GAAP.
For the full-year 2016, the Group had gross travel bookings of $68.1 billion, a 23% increase compared to 2015 (approximately 25% on a constant-currency basis). The Group's gross profit in 2016 was $10.3 billion, a 20% increase from the prior year (approximately 23% on a constant-currency basis). International operations contributed full-year gross profit of $9.1 billion, a 22% increase versus the prior year (approximately 25% on a constant-currency basis).
The Group had GAAP net income for full-year 2016 of $2.1 billion, a 16% decrease versus the prior year. Net income was $42.65 per diluted share, a 14% decrease as compared to prior year. Net income for full-year 2016 was negatively impacted by a non-cash charge of $941 million recorded in the 3rd quarter of 2016 related to an impairment of goodwill, which reduced net income per diluted share by $18.79.
Non-GAAP net income for full year 2016 was $3.3 billion, a 23% increase versus the prior year. Non-GAAP net income was $65.63 per diluted share, a 26% increase compared to $51.92 per diluted share a year ago. Adjusted EBITDA for 2016 was $4.1 billion, an increase of 19% over the prior year.
"The Priceline Group finished 2016 with a strong 4th quarter, reporting accelerating growth in hotel room nights booked, with solid organic growth and attractive profit margins," said Glenn Fogel, Chief Executive Officer of The Priceline Group. "We also recorded accelerating growth in room nights booked for the full year 2016 over 2015, which reflects the benefits of our scaled accommodations platform and strong execution by our global teams."
Looking forward to 2017, Mr. Fogel said, "We will continue to focus on growing our supply base to drive customer choice, innovating around the customer experience and investing efficiently in marketing to deliver profitable top-line growth."
The following information was filed by Priceline Group Inc. (PCLN) on Monday, February 27, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.