May 7, 2020 / 9:11 PM / 20 days ago

Booking.com operator misses profit estimates on travel demand slump

FILE PHOTO: The logo of online accommodation booking website Booking.com is pictured at the International Tourism Trade Fair (ITB) in Berlin, Germany, March 9, 2016. REUTERS/Fabrizio Bensch/File Photo

(Reuters) - Online travel agency Booking Holdings Inc’s (BKNG.O) quarterly adjusted profit plunged 69% on Thursday, widely missing Wall Street estimates as travel demand took a severe hit from the COVID-19 pandemic.

Countries around the world shut have borders and imposed lockdowns to check the spread of the novel coronavirus hitting travel demand.

First-quarter revenue of the company, which operates Booking.com, fell 19% to $2.29 billion, from a year earlier.

“The COVID-19 pandemic has profoundly impacted our company and the entire travel industry,” Chief Executive Officer Glenn Fogel said in a statement.

Adjusted net income fell to $156 million, in the three months ended March 31, from $508 million, a year earlier.

On a per share basis, the company earned $3.77 per share. Analysts were expecting a profit of $5.64 per share, according to IBES data from Refinitiv.

Shares of the company were down 1% in aftermarket trade.

Reporting by Bharath Manjesh in Bengaluru; Editing by Shailesh Kuber

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