TripAdvisor Inc., an online travel service, saw its net profit fall by a factor of 1.6 in the second quarter, whilst its adjusted profit and revenue both fell short of market expectations.
According to the company’s press release, net profit for April–June stood at $22.8 million, or $0.19 per share, compared with $36.5 million, or $0.28 per share, for the same period last year. Adjusted earnings fell to $0.35 from $0.46 per share.
Revenue fell by 7 per cent to $441.9 million
Analysts surveyed by FactSet had, on average, expected adjusted earnings of $0.38 per share on revenue of $506.3 million.
Earlier this year, TripAdvisor agreed a deal to sell TheFork, American Express’s restaurant booking platform, for $700 million. The transaction is expected to be completed by the end of the year. As a result of these developments, TheFork’s results are no longer included in the financial statements, the report notes.
TripAdvisor’s share price fell by 25.5% at the close of trading on Thursday following the publication of the results. Since the start of the year, it has fallen by 28.4%.