Priceline.com experienced a second-quarter revenue drop of $60 million compared with the same period last year. But the online travel company generated higher net earnings–$6.3 million vs. $2.8 million during the first quarter of 2001.
In a related development, the firm’s board of directors authorized the repurchase of up to $40 million of common stock. In addition, Cheung Kong Limited and Hutchison Whampoa Limited, the firm’s two largest stockholders, said they may purchase an added $40 million in stock.
The firm also announced that Jeffery H. Boyd, president and chief operating officer, was named president and co-chief executive officer. He will share CEO responsibilities with Chairman Richard S. Braddock. Mitch Truwit, former executive vice president-operations, will replace Boyd as COO.
Moving forward, the company predicted July revenue of at least $92 million, but said that August sales would probably remain flat, and that September was still a question mark because of the 9/11 anniversary.
The third quarter is “particularly challenging to provide definite revenue guidance given the continued turbulence in the airline industry and the potential one-time impact of consumer reluctance to travel in September around the anniversary of the terrorist attacks,” said Co-CEO Braddock in a statement.
Priceline.com added one million new customers during the second quarter, bringing its base to 14.5 million. In addition, it said that over one million room nights were sold during the quarter–a 60% improvement over the same period last year.
In another executive shift, Trey Urbahn, former president of priceline.com’s airline tickets service, was named chairman of the firm’s Travel Services Group. Christopher L. Soder, president of Lodging, automotive and business development, was appointed as an executive vice president.
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