Travel Site TripAdvisor Hits All-Time High as Advertising Surges
NEW YORK (TheStreet) - Trip Advisor
The Newton, MA- based company was gaining 14% Thursday at $69.57 after rising as high as $71.45, and extending its 12-month advance to 95%. By comparison, the S&P 500 has gained 25% in the past year.
The online travel company beat out revenue expectations by $10 million as advertising boomed. Click-based advertising accounted for 74% of Trip Advisor's $246 million of revenue in the second quarter of 2013. Earnings rose to $0.52 a share in the second quarter, up from $0.41 a year ago. While this mode of advertisement accounted for 77% in 2012, revenue from click advertising rose 21% to $183 million. TripAdvisor spent $42 million buying back 675,000 shares
The company continues to expand this quarter, trapping about 11% of unique users on online travel sites. User generated content has expanded to 70 contributions per minute from more than 220 million unique visitors a month. TripAdvisor has attracted users by launching hotel metasearch functionality for inline room pricing, several mobile apps and its first TV ad campaign with tests in 6 major cities across the U.S.
TripAdvisor is the largest online travel research company in the world. Users can make comments, check ratings and pricings to plan their vacations. More than 100 million reviews have been written on the site by individuals in the 30 countries the company operates in worldwide. TripAdvisor operates under the domain name daodao.com in China.
-- Written by Robert Arenella in New York
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