Priceline Parent Takes $900 Million Revenue Hit Over FTC Deceptive-Ads Action
Priceline's parent recorded a $900 million revenue reduction and a separate $100 million accrued loss tied to an FTC matter involving hotel advertising.
Priceline parent Booking Holdings recorded a $900 million reduction in third-quarter revenue and accrued a separate $100 million loss related to an FTC action involving its subsidiary's connection to deceptive hotel advertisements, Reuters reported Tuesday.
The adjustment helped push the travel company's quarterly revenue down 1% from a year earlier to $8.89 billion, compared with about $9 billion in the same period last year. Shares fell about 2.4% in extended trading.
The company disclosed in August that the Federal Trade Commission was considering suing Priceline and an affiliate over disclosures, fees, customer support and billing practices. It previously said it was discussing a resolution with the agency.
The FTC had been examining Priceline's relationship with Guest Reservations, a third-party website that advertises stays at individual hotels, according to Reuters.
Priceline provides hotel-room inventory to Guest Reservations through Priceline Partner Solutions, Reuters reported, citing a separate ongoing lawsuit filed by San Francisco against the companies.
The revenue reduction and accrued loss are accounting entries reported by Priceline's parent. Reuters did not describe them as a newly announced $1 billion fine or a completed settlement.