The Priceline Group Inc. (NASDAQ:PCLN) Q2 2017 Earnings Conference Call - Final Transcript

Aug 08, 2017 • 04:30 pm ET

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The Priceline Group Inc. (NASDAQ:PCLN) Q2 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to The Priceline Group Second Quarter 2017 Conference Call. The Priceline Group would like to remind everyone that this call may contain forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements.

Expressions of future goals or expectations and similar expressions reflecting something other than the historical fact are intended to identify forward-looking statements. For a list of factors that could cause the Group's actual results to differ materially from those described in the forward-looking statements, please refer to the Safe Harbor statement at the end of the Group's earnings press release as well as the Group's most recent filings with the Securities and Exchange Commission.

Unless required by law, The Priceline Group undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. A copy of the Group's earnings press release together with an accompanying financial and statistical supplement is available in the For Investors section of The Priceline Group's website, www.pricelinegroup.com.

And now, I'd like to introduce The Priceline Group's speaker for this afternoon, Glenn Fogel and Daniel Finnegan. Go ahead, gentlemen.

Executive
Glenn D. Fogel

Thank you, and welcome to The Priceline Group's second quarter conference call. I'm joined this afternoon by our Priceline Group CFO, Dan Finnegan. The Group produced a solid quarter, reporting worldwide accommodation reservations of 170 million room nights, which is up 21% year-over-year and hit the top of our guidance range. Consolidated gross bookings were up about 19% year-over-year on a constant currency basis or about 16% in US dollars.

Gross profit was up about 24% year-over-year on a constant currency basis or about 21% in US dollars. Adjusted EBITDA increased 20% year-over-year to $974 million. We believe the growth that we are reporting, demonstrates the strength of our brands, the value of a diversified global footprint and solid execution by our more than 22,000 employees located in more than 280 offices around the world.

Looking at our individual brands, Booking.com recorded another impressive quarter, adding approximately 150,000 properties to the platform. As of June 30, 2017, Booking.com's total property count was more than 1.3 million, which was a 39% year-over-year growth rate and represented approximately 26.1 million potentially bookable rooms. These properties are located in over 220 countries and territories and show Booking.com's depth and breadth of global accommodation listings.

One of the most important parts of the Booking.com platform is its vacation rental properties, which adds real choice for our customers. As of June 30, 2017, Booking.com had over 721,000 vacation rental properties, a growth rate of 54% year-over-year. This marks the fourth consecutive quarter of accelerating growth in vacation rental properties. We will continue to add these type of properties across our entire global