Travel review website TripAdvisor Inc (TRIP.O) reported lower-than-expected quarterly revenue, hurt by a fall in display advertisements on its websites and a drop in subscription revenue.Shares of the company, which owns websites such as TripAdvisor.com and Oyster.com, fell 5.1 percent to $49.99 in extended trading on Wednesday.TripAdvisor's total revenue in the fourth quarter was $316 million, missing the average analyst estimate of $326.5 million, according to Thomson Reuters I/B/E/S.On an adjusted basis, the company earned 16 cents per share, well below analysts' estimate of 31 cents per share.
The company's revenue from display-based advertising and subscription fell 2.8 percent to $69 million.Needham, Massachusetts-based TripAdvisor, which aggregates reviews and opinions about destinations and hotels, said its referral and transaction revenue was $154 million, flat from last year.
TripAdvisor's referral revenue has been under pressure since the company rolled out its instant booking feature, which allows booking of hotel rooms directly through the company's website.The company's other hotel revenue, which include revenue from non-TripAdvisor branded websites, fell 20.7 percent to $29 million.
Net income fell to $1 million, or 1 cent per share, in the quarter ended Dec. 31, from $3 million, or 2 cents per share, a year earlier. (bit.ly/2kTQAIf) (Reporting by Akankshita Mukhopadhyay and Shashwat Awasthi in Bengaluru; Editing by Maju Samuel)
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Updated Date: Feb 16, 2017 04:30:08 IST