Key facts
- Booking Holdings said it accrued a $100 million loss related to the FTC action involving Priceline.
- Third-quarter profit per share was $4.66, against $3.98 per share a year earlier, Booking said.
- Booking previously said it was in talks with the FTC to resolve the matter.
- The FTC had been examining Priceline's relationship with Guest Reservations, a third-party hotel advertising site.
- Priceline supplies hotel room inventory to Guest Reservations through Priceline Partner Solutions, per a San Francisco lawsuit.
Booking Holdings said on November 3 that it recorded a $900 million reduction in revenue and accrued a $100 million loss related to a Federal Trade Commission action involving its subsidiary's connection to deceptive hotel ads. The online travel agency, parent of Priceline, said third-quarter revenue declined 1% year over year as a result.
Total revenue for the quarter ended September 30 came in at $8.89 billion, compared with about $9 billion a year earlier. Profit per share was $4.66, against $3.98 per share in the year-ago period. Booking shares were down 2.4% in extended trading.
Booking disclosed in August that the FTC was considering suing Priceline and an affiliate over disclosures, fees, customer support and billing practices, and the company previously said it was in talks with the FTC to resolve the matter. The FTC had been looking into Priceline's relationship with Guest Reservations, a third-party website that advertises stays at specific hotels. According to an ongoing lawsuit against the companies filed by San Francisco, Priceline supplies hotel room inventory to Guest Reservations through Priceline Partner Solutions.