Booking Holdings takes $900 million hit over potential US complaint
Booking Holdings recorded a $900 million revenue reduction and a $100 million loss in the third quarter tied to a potential Federal Trade Commission complaint.
Booking Holdings recorded a $900 million revenue reduction and a $100 million loss in the third quarter, tied to a potential complaint by the US Federal Trade Commission against Priceline, according to Skift.
The group's revenue fell 1% to $8.9 billion, and net income fell 1% to $2.7 billion, while room nights grew 7%.
The company's chief financial officer said the fourth-quarter environment looked mixed, according to the source.
According to the company, the potential complaint represented a financial risk that required recording the amount in the third-quarter results before any official decision.
What do these terms mean?
Federal Trade Commission: A US agency that regulates competition and consumer protection and can impose fines and take action against companies.
Room nights: An indicator measuring the number of nights guests book in hotels, used to gauge demand for accommodation.
Net income: The profit remaining after deducting all costs, expenses and taxes from revenue.
Revenue reduction: A cut in the amount recorded as sales, here due to a financial provision linked to the potential complaint.
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