Expedia reports fourth-quarter loss, cuts costs

Calling the economic environment "unpredictable and unprecedented," Bellevue-based Expedia said it has frozen salaries and reduced its head-count costs by $20 million.

In a conference call with analysts, the online travel company did not say how many jobs were eliminated as part of the cost cutting.

Spokeswoman Katie Deines said only Expedia reduced its "head count in various groups and geographies," including at its Bellevue headquarters.

Expedia posted a fourth-quarter loss of $2.76 billion, mostly because of a $3 billion write-down in the value of goodwill and other intangible assets stemming from a sharp drop in its stock price. A year ago, the company had a profit of $65.4 million.

Revenues declined 7 percent to $620.8 million as weaker travel demand hurt its worldwide merchant hotel and air business.

On a per-share basis, Expedia lost $9.60 during the quarter, down from a profit of 22 cents a year ago.

Without the write-down and other special items, Expedia would have had a per-share profit of 22 cents, short of Wall Street's expectations for 24 cents, according to Reuters Estimates.

Shares of Expedia fell 63 cents, or 7.4 percent, to $7.90 Thursday. During the last year, Expedia stock has traded between $26.04 and $6 a share.

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com