The Priceline Group Inc. (NASDAQ:PCLN) Q4 2014 Earnings Conference Call - Final Transcript
Feb 19, 2015 • 07:30 am ET
Thank you. [Operator Instructions]
Our first question comes from Heath Terry of Goldman Sachs. Your line is now open.
Great, thanks. Just a couple of questions. If you could provide us a little bit more detail on, you mentioned ADR growth being less than 1% in the quarter. But if you look more specifically, particularly at the Eurozone, what you're seeing from a consumer demand perspective and just willingness to spend on travel, whether the day-to-day data points you're seeing are positive or negative from any trend perspective.
And then you mentioned that as we go through or past Q1 that the operating margin pressure should diminish. As that happens are there incremental positive ROI growth channels from a customer acquisition or business acquisition perspective that you see out there that you can allocate those dollars to accelerate growth or do you simply expect to see that fall to the bottom-line?
Okay. Thanks, Heath. This is Darren I'll take the ADR growth European economy issue and maybe Dan, can comment on operating margins. No in general certainly everyone knows what's going on the euro but we're not sensing overall that there are big issues with consumer demand in Europe. Its kind a mixed bag certainly Russian outbound is down for obvious reasons, although Russian domestic travel is still quite strong. France, specifically is still in a bit of malaise both as a destination and as bookers, but that's made up for the fact that the Brits as bookers are very strong the German as bookers are very strong and Southern Europe it looks like it's going to be very popular this spring and summer. So overall Europe -- Europe is not -- even US is definitely one of the hottest markets in the world, but that Europe is holding up quite well at least the early signs in 2015.
And Heath on operating margins so yeah, we've said that we expect the pressure to diminish as we go throughout the year as it relates to other non-advertising OpEx expenses. We already advertised aggressively in all variable channels and we'll spend an unlimited amount of money there regardless of what's going on with OpEx as long as we can get a fair return on our investment, so the impact of less margin pressure from OpEx should benefit bottom-line and the -- how advertising plays out is just completely separate story.
Great. Thank you, guys.
Thank you. Our next question comes from Justin Post of Bank of America Merrill Lynch. Your line is now opened.
Thank you. Just talking a little bit on a high level on the space, obviously Expedia has had a lot of acquisition news lately. Does that really change anything for Priceline And they do have their room nights up at a faster rate, so how does that affect the overall environment, if you can provide any help on that. And then, secondly on mobile, it looks like mobile is growing as a piece of your business,