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TripAdvisor's profit plummets

Thursday, February 11, 2016 - 00:55

The travel website's declining profit beat analysts' estimates, and higher display ads and subscription sales drove revenue. Fred Katayama reports.

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TripAdvisor could just as well be called TripAdvertising. The travel website's quarterly display ad revenue and subscription revenue blasted higher. Also helping boost revenue: its new instant booking feature, which allows travelers to book hotels directly from Tripadvisor.com instead of being directed to a third-party website. Profit plunged but far exceeded analysts estimates. Shares soared, making TripAdvisor one of the day's top gainers on the S&P 500. One other bright spot: more than half of TripAdvisor's unique users came from mobile devices. Investors also reacted positively to Expedia. The world's largest online travel services company lost $13 billion in the fourth quarter partly due to its purchase of vacation rental site HomeAway in December. But it forecast a big jump in adjusted earnings this year, sending the stock up sharply.

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TripAdvisor's profit plummets

Thursday, February 11, 2016 - 00:55