Higher advertising revenue boosts TripAdvisor results, shares jump
(Reuters) - TripAdvisor Inc (TRIP.O) reported a 26 percent jump in quarterly profit as more people visited the company's travel website, generating higher advertising revenue, sending its shares up 18 percent in after-hours trading.
The company aggregates reviews and opinions about destinations and accommodations and depends on ads and subscriptions for revenue.
TripAdvisor has been trying to create a larger presence in advertising through television, radio and print media. The company said it kicked off its first offline ad campaign in the second quarter.
TripAdvisor, which was spun off from online travel agency Expedia Inc (EXPE.O) in 2011, said more than 1 billion people visited its website during the first half of the year. (r.reuters.com/jyj89t)
Revenue from click-based advertising rose 21 percent to $182.8 million for the second quarter ended June. It accounted for 74 percent of total revenue. The company also reported sizeable jumps in display- and subscription-based advertising.
Total revenue jumped 25 percent to $246.9 million.
Net income attributable to TripAdvisor rose to $67 million, or 46 cents per share, from $53 million, or 37 cents per share, a year earlier. Excluding one-time items, the company earned 52 cents per share.
Analysts on average were expecting earnings of 49 cents per share on revenue of $236.6 million, according to Thomson Reuters I/B/E/S.
The company's shares were trading at $72 in extended trade after closing at $61.14 on the Nasdaq on Wednesday. They have gained about 45 percent so far this year.
(Reporting by Sagarika Jaisinghani in Bangalore)