BELLEVUE, Wash. (AP) -- Online travel booking company Expedia Inc. said its fourth-quarter net income fell slightly from the year before even though revenue was up, as rising costs caused operating profits to plunge almost 20 percent.
Revenue was also far lower than expected in the quarter, and shares dropped in late trading Thursday.
The company said its net income for the quarter ended Dec. 31 was $70.3 million, or 51 cents per share, compared to $71.3 million, or 50 cents per share, during the same period a year before.
Earnings per share climbed even as net income fell because there were fewer shares available compared to the year before. During 2011 the company bought back 10.6 million shares on a pre-reverse split basis for $283 million.
Revenue during the quarter rose 7 percent to $787.1 million from $737.6 million.
The company also reported adjusted income, excluding one-time costs like stock compensation, of 58 cents per share, which was flat year over year.
Earnings surpassed the adjusted income of 53 cents per share that analysts expected, according to FactSet. But revenue fell short of the average analyst estimate of $838 million.
Expedia said its fourth-quarter cost of revenue climbed 5 percent to $183.4 million, while technology and content costs jumped 29 percent to $102.6 million. Selling and marketing, and general and administrative costs also swelled, contributing to a 19 percent decline in operating income, to $91.6 million.
For the full year, the company earned $472.3 million, or $3.41 per share, up from $421.5 million, or $2.93 per share, in 2010. Adjusted income improved to $2.75 per share, up from an adjusted $2.53 per share the year before.
Revenue rose to $3.45 billion from $3.03 billion.
Shares of Expedia fell $1.80, or 5.3 percent, to $32.36 in after-hours trading.
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