Expedia's profits drop due to Hawaii tax dispute
Online travel agency Expedia says revenue rose in the fourth quarter on strong hotel bookings but profit dropped 90 percent because of money set aside for a tax dispute in Hawaii.
Expedia Inc. said Tuesday that it earned $6.7 million in 2012's final three months, down from $70.3 million in the fourth quarter of 2011.
The company says that without the Hawaiian tax issue and other one-items, it would've earned 63 cents per share. FactSet says that analysts, who exclude items, were expecting 65 cents per share.
Revenue was up 24 percent to $974.9 million.
Expedia's shares were up $2.34, or 3.6 percent, to $67.50 in regular trading, and gained another $2.92, or 4.3 percent, to $70.42, in the first few minutes of extended trading after the report.
Copyright 2013 by The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.