* Revenue aided by purchase of Travelcity assets
* First quarter loss 5 cents a share vs estimate loss 2
(Adds analyst comment, updates stock price)
May 5 Orbitz Worldwide, the online
travel agency, on Monday reported a first-quarter loss as it set
aside funds for income taxes and forecast revenue for the
current period that topped current analyst estimates.
Revenue was aided by the February acquisition of certain
assets of the Travelocity Partner Network, which handles
contracts for Yahoo Travel and some banks.
Though the Travelocity purchase helped revenue, "it's clear
that (Orbitz is) continuing to execute, they're improving the
balance sheet, and there's a lot of room for growth in terms of
international penetration gains," said Daniel Kurnos, an analyst
with Benchmark Co.
Orbitz, which operates its namesake and CheapTickets brands
in the United States and ebookers in Europe, has boosted revenue
from hotel sales, which tend to be more profitable than airline
Quarterly revenue rose 4 percent to $210.3 million, compared
with $206.5 million expected by analysts, according to Thomson
Reuters I/B/E/S. Orbitz forecast revenue for the second quarter
of $239 million to $245 million, compared with $233.3 million
expected by analysts.
In the first quarter, hotel revenue rose 7 percent to $67.2
million, while revenue from airline tickets rose 1 percent to
Orbitz posted a net loss of $5.9 million, or five cents a
diluted share, for the first quarter as it recorded an income
tax provision of $7.3 million. That result compared with a
year-earlier profit of $146.2 million, or $1.34 a share, which
was aided by an income tax benefit of $158.5 million.
Analysts expected a loss of two cents a share, on average.
Shares of Orbitz were off 1.2 percent at $7.33 in morning
(Reporting by Karen Jacobs in Atlanta; Editing by Chizu