Covid-19 wipes out Booking Holdings income

SINGAPORE, 1 March 2021: Booking Holdings reported its fourth quarter and full-year 2020 financial results at the end of last week, recording a net income decline of 99% for the fiscal year.

The company’s results for the three and twelve months ended 31 December 2020 have been significantly and negatively impacted due to the Covid-19 pandemic and the resulting economic conditions and government orders, the travel booking site reported.

Fourth-quarter slump

During the fourth-quarter gross travel bookings for Booking Holdings for all travel services booked by customers, after cancellations, stood at USD 7.3 billion, a 65% decrease. Room nights booked in the 4th quarter decreased 60% from the previous year.

Total revenues for the 4th quarter of 2020 reached USD1.2 billion, a 63% decrease. The company reported a net loss in the 4th quarter of 2020 of USD165 million, compared with a net income of USD1.2 billion in the 4th quarter of 2019.

Year-long declines

For the full-year 2020, Booking Holdings reported gross travel bookings of USD35.4 billion for 2020, down by a massive 63% when compared with 2019.

Booking Holdings’ total revenues in 2020 stood at  USD6.8 billion, a 55% decrease from the previous year. Net income for the full-year 2020 was USD59 million, a 99% decrease.

Net income for the full-years 2020 and 2019 included gains of USD1.8 billion and USD745 million, respectively, on marketable equity securities. Net income for the full-year 2020 also contains a USD1.1 billion impairment charge related to OpenTable and KAYAK goodwill.

Net income for the full-year 2020 was USD1.44 per diluted share, a 99% decrease as compared to the prior year.

Non-GAAP net income for the full-year 2020 reached USD194 million, a 96% drop compared to 2029. Non-GAAP net income stood at USD4.71 per diluted share, representing a 95% decrease. Adjusted EBITDA for 2020 was USD879 million, down 85%.

The travel environment continued to be challenging through the fourth quarter of 2020. In January 2021, Covid-19 cases remained very high, and travel restrictions remained in many parts of the world.

“However, in recent weeks, we have started to see some improvements in booking trends that we will continue to monitor,” said Bookings Holdings chief executive officer Glenn Fogelof. “Looking ahead, I am more confident than ever in our long-term future and in the eventual strong recovery of travel demand. We will continue to focus on what we can control, namely investing in our business and executing against our strategic priorities to ensure we exit this crisis on a strong footing.”