Orbitz posts lower second-quarter profit, cuts year growth forecast
(Reuters) - Online travel agency Orbitz Worldwide Inc (OWW.N) reported a lower second quarter profit on Wednesday and cut its full-year growth forecast, saying global economic uncertainty is continuing into the current period.
Net income came to $4.6 million, or 4 cents a diluted share, in the second quarter, down from $8.9 million, or 8 cents a share, a year earlier.
Orbitz, which competes with Priceline.com Inc (PCLN.O) and Expedia Inc (EXPE.O), said the total value of the company's travel bookings fell 1 percent to $2.97 billion in the second quarter, hurt by currency effects.
Quarterly revenue was flat at about $201 million. Hotel and vacation package revenue rose but revenue tied to air travel fell.
The company said it now expects revenue to rise 2 percent to 4 percent for the full year, compared with a May view of growth between 4 percent and 8 percent. It also pared its growth forecast for adjusted earnings before interest, taxes, depreciation and amortization. Orbitz said it now expects adjusted EBITDA for the year to be flat to up 5 percent; in May it had called for a 7 to 12 percent increase.
Orbitz, which also owns the CheapTickets and ebookers travel sites, said its revised outlook reflects worsening economic conditions in Europe, weaker online air travel demand and foreign-exchange challenges.
Priceline.com, which posted earnings late on Tuesday, also said weakness in Europe could hurt growth in the current quarter.
(Reporting by Karen Jacobs; Editing by Gerald E. McCormick; Editing by Gerald E. McCormick)