Booking achieves record profit and increases dividend

26-02-25

Booking Holdings has announced record financial results for fiscal year 2024, with a net profit of $5.882 billion (€5.617 billion), representing a 37% increase from the $4.289 billion (€4.096 billion) achieved in 2023. This performance is attributed to the increase in gross bookings and sustained growth in the number of room nights booked.

Gross bookings reached USD 165.6 billion in 2024, a growth of 10% compared to the previous year. In addition, the number of room nights booked increased by 9% year-on-year, totalling 1.1 billion room nights. These indicators reflect strong demand in the travel industry and the company's ability to capitalise on this trend.

Booking Holdings' total revenue in 2024 was $23.7 billion, an increase of 11% over 2023. This revenue growth is due, in part, to the expansion of its services and diversification of its offering in the global travel market.

In the fourth quarter of 2024, the company reported revenues of $5.47 billion, beating analysts' expectations of $5.19 billion. Adjusted earnings per share for the period were $41.55, above the $36.70 expected by experts. Gross bookings in the fourth quarter were $37.2 billion, above analysts' estimates of $34.5 billion.

In light of these positive results, Booking Holdings' board of directors has approved a new $20 billion share repurchase programme, adding to the $7.7 billion remaining from the previous programme at the end of 2024. In addition, the company has increased its quarterly dividend by 10% from $8.75 to $9.60 per share. This dividend will be paid on 31 March to shareholders of record up to 7 March.

Glenn Fogel, CEO of Booking Holdings, noted the strength of the European leisure travel market, driven by domestic and long-haul travel by affluent US tourists. He also pointed to significant demand in the Asia-Pacific region, especially in Southeast Asia, due to an increase in high-income Chinese tourists following the relaxation of some visa restrictions.

Looking ahead to the first quarter of 2025, the company anticipates revenue growth of 2% to 4% year-on-year and gross bookings growth of 5% to 7%. For the full year 2025, both revenue and gross bookings are expected to grow in the mid-single-digit range, while adjusted earnings per share could increase in the low double-digit range.

Analysts at Jefferies and JPMorgan have raised their price targets for Booking Holdings shares to $5,400 and $5,750, respectively, citing solid demand in the travel sector and increased spending on social media advertising. The company's shares have experienced 35% growth over the past 12 months.

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