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Expedia Inc. Reports Operating Results (10-K)

February 11, 2011 | About:

Expedia Inc. (NASDAQ:EXPE) filed Annual Report for the period ended 2010-12-31.

Expedia Inc. has a market cap of $7.04 billion; its shares were traded at around $25.69 with a P/E ratio of 16.9 and P/S ratio of 2.3. The dividend yield of Expedia Inc. stocks is 1.1%. Expedia Inc. had an annual average earning growth of 4.2% over the past 5 years.Hedge Fund Gurus that owns EXPE: Lee Ainslie of Maverick Capital, Larry Robbins of Glenview Capital, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates, Louis Moore Bacon of Moore Capital Management, LP, George Soros of Soros Fund Management LLC. Mutual Fund and Other Gurus that owns EXPE: Columbia Wanger of Columbia Wanger Asset Management, Bill Gates of Bill & Melinda Gates Foundation Trust, Ron Baron of Baron Funds, Murray Stahl of Horizon Asset Management, PRIMECAP Management.

Highlight of Business Operations:

As of December 31, 2010, there were approximately 248,346,725 shares of Expedia common stock, 25,599,998 shares of Expedia Class B common stock and 751 shares of Expedia preferred stock outstanding. Expedia stockholders are entitled to one vote for each share of common stock, ten votes for each share of Class B common stock and two votes for each share of preferred stock. As of December 31, 2010, Liberty Media Corporation (Liberty), through a wholly-owned subsidiary, held approximately 18% of Expedias outstanding common stock (or 29% assuming conversion of all shares of Class B common stock into shares of common stock) and 100% of Expedias outstanding Class B common stock. As of such date, Barry Diller, Chairman and Senior Executive of Expedia (through his own holdings and holdings of Liberty, over which Mr. Diller generally has voting control pursuant to an irrevocable proxy granted by Liberty under the Stockholders Agreement described below) controlled approximately 61% of the outstanding total voting power of Expedia.

Global Reach. Our Expedia, Hotels.com and TripAdvisor Media Network brands operate both in North America and internationally. We also offer Chinese travelers an array of products and services through our majority ownership in eLong and through our TripAdvisor brands daodao.com and kuxun.cn, and we offer hotels to European-based travelers through Venere. In 2010, approximately 36% of our worldwide gross bookings and 38% of worldwide revenue were international.

Over 60% of our revenue comes from transactions involving the booking of hotel reservations, with less than 15% of our worldwide revenue derived from the sale of airline tickets. We facilitate travel products and services either as stand-alone products or as part of package transactions. We have emphasized growing our merchant hotel and package businesses as these result in higher revenue per transaction; however, we are working to grow our global agency hotel business through our Venere, Expedia and Hotels.com brands. We also seek to continue diversifying our revenue mix beyond core air and hotel products to car rental, destination services, cruise and other product offerings. We have been working toward and will continue to work toward increasing the mix of advertising and media revenue from both the expansion of our TripAdvisor Media Network, as well as increased advertising revenue from our worldwide websites, such as Expedia.com and Hotels.com, which have historically been focused on transaction revenue. In 2010, advertising and media revenue accounted for approximately 13% of worldwide revenue.

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Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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