Booking Holdings(US:BKNG)2025-07-29 21:05Financial Performance - Total revenues increased by approximately 16% in Q2 2025 compared to Q2 2024, with a 12% increase on a constant currency basis[122] - Total revenues increased year-over-year by 16% and 13% for the three and six months ended June 30, 2025, respectively, with a constant currency increase of approximately 12% and 11%, respectively[174] - Total gross bookings increased year-over-year by 13% and 10% for the three and six months ended June 30, 2025, respectively, with a constant currency increase of approximately 9% for both periods[174] - Total gross bookings increased by 12.8% to $46.736 billion for the three months ended June 30, 2025, and by 9.9% to $93.406 billion for the six months ended June 30, 2025 compared to 2024[132] - Merchant gross bookings rose by 25.1% to $32.305 billion for the three months ended June 30, 2025, and by 23.0% to $63.474 billion for the six months ended June 30, 2025 compared to 2024[132] - Room nights reserved increased by 7.7% to 309 million for the three months ended June 30, 2025, and by 7.4% to 627 million for the six months ended June 30, 2025 compared to the same periods in 2024[131] Expenses - Marketing expenses in Q2 2025 were $2.1 billion, up 10% from Q2 2024, reflecting increased travel demand and marketing investments[113] - Marketing expenses increased by 10.3% to $2.139 billion for the three months ended June 30, 2025, and by 10.3% to $3.916 billion for the six months ended June 30, 2025 compared to 2024[140] - Personnel expenses increased by 11.0% to $896 million for the three months ended June 30, 2025, while decreasing by 2.7% to $1.589 billion for the six months ended June 30, 2025 compared to 2024[143] - General and administrative expenses surged by 77.6% to $199 million for the three months ended June 30, 2025, and by 14.6% to $341 million for the six months ended June 30, 2025 compared to 2024[144] - Interest expense rose significantly to $418 million for the three months ended June 30, 2025, a 58.6% increase from $264 million in 2024[148] - Depreciation and amortization expenses increased to $158 million for the three months ended June 30, 2025, up 10.9% from $142 million in 2024[146] Market Trends - Global room nights increased by 9% year-over-year in 2024, with an 8% increase in Q2 2025 compared to Q2 2024, driven by strong demand in Europe and Asia[104] - The mix of total gross bookings generated on a merchant basis increased to 69% in Q2 2025 from 62% in Q2 2024, enhancing payment flexibility for consumers[112] - The mix of room nights booked for alternative accommodation properties was approximately 37% in Q2 2025, up from 36% in Q2 2024[116] - Flight gross bookings increased by 33% and 31% year-over-year for the three and six months ended June 30, 2025, respectively[135] Regulatory and Compliance - The company continues to face regulatory scrutiny, particularly in the EU, which may lead to increased compliance costs and operational challenges[121] - The company has exposure to several types of market risk, including changes in interest rates and foreign currency exchange rates[172] - The company designates certain portions of Euro-denominated debt as a hedge against foreign currency exposure related to net investments in Euro functional currency subsidiaries[174] - The company plans to continue monitoring and managing its exposure to market risks as outlined in its Annual Report on Form 10-K[172] Cash and Investments - Cash, cash equivalents, and investments totaled $18.2 billion as of June 30, 2025, with approximately $13.7 billion held by international subsidiaries[153] - Deferred merchant bookings amounted to $9.1 billion at June 30, 2025, reflecting cash payments received in advance[154] - Net cash provided by operating activities for the six months ended June 30, 2025, was $6.484 billion, an increase from $5.229 billion in 2024[166] - The company had a remaining share repurchase authorization of $24.6 billion as of June 30, 2025, following a program to repurchase up to $20 billion of common stock[158] Future Outlook - The Transformation Program is expected to deliver annual run rate savings of $400 to $450 million over the next three years, with $50 million in savings realized in the first half of 2025[119] - The company expects to provide further updates on its financial performance and market strategies in future reports[171] - The company anticipates that fluctuations in foreign currency exchange rates will continue to impact its financial results[174] - A hypothetical 100 basis point (1.0%) decrease in interest rates would have resulted in an increase of approximately $1.2 billion in the estimated fair value of outstanding debt as of June 30, 2025[173] - A hypothetical 10% decrease in the fair values of investments in equity securities would have resulted in a loss of approximately $55 million before tax recognized in net income[175] - The company performed its annual goodwill impairment test as of September 30, 2024, concluding no impairment of goodwill[126] - The company experienced a shift from agency to merchant bookings, impacting revenue streams and overall financial performance[132]