Feeds

MS reveals red ink in Expedia IPO filing

But by Web standard the unprofitability is hardly unusual...

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Microsoft yesterday re-filed its IPO for Expedia, hoping to cash in on the Internet stock craze. A 13.6 per cent stake, amounting to 5.2 million shares, will be offered, with the share price expected to be in the 10 to $12 range. This was not disclosed in the first SEC filing in September. Assuming an $11 initial price and the sale of all the shares offered (a safe assumption), the 38.2 million outstanding shares would give an implied market value of $420 million. The CEO is Richard Barton and the CFO Gregory Stanger. In baring its soul (an assumption here) with the SEC in the revised initial registration statement, Microsoft had to file some interesting information on the financial viability of Expedia, which should make potential investors think again before parting with their greenbacks - except that they won't. For the financial year ending 30 June, Expedia lost $20 million on revenue of only $38 million. Yes, it's a small, unprofitable business. For the last quarter, losses were $5 million on revenue of $15 million, which means that profitability is not going up, although the revenue is. This suggests that the jolly forces of competition are alive and well, with Travelocity and Preview Travel being significant contenders in the airline ticket part of the game. Of course, nearly all the action for online booking is in the USA, where people evidently do not mind spending more time online to find a bargain flight than it would take to go by bicycle. All ten of Expedia's top ten destinations are in the USA, and the inclusion of leisure destinations like Orlando and Las Vegas suggest that the likes of Expedia is for consumers spending as little of their own cash as possible. Good on them - but it doesn't make for a really big business. There are localised versions for Canada, The UK and Germany. The registration statement has not yet become effective, so there is not yet a prospectus. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.