Booking Holdings Reports $1 Billion Hit From FTC Action

Booking Holdings Inc. reported a $1 billion financial hit in its third-quarter results, comprising a $900 million revenue reduction and a $100 million loss tied to a Federal Trade Commission action. The regulatory matter centers on Priceline's relationship with Guest Reservations, a third-party site accused of impersonating businesses and using deceptive ads to charge consumers higher fees.

Despite the regulatory blow, the company beat earnings expectations with a profit per share of $4.66, though total revenue declined to $8.89 billion. Booking Holdings warned that a final settlement with the FTC will likely involve direct payments to the agency and restitution for affected U.S. consumers.

CEO Glenn Fogel issued cautious guidance for the fourth quarter, projecting room-night growth of only 1% to 3%. The company attributed this slowdown to softer international travel demand and disruptions caused by conflict in the Middle East.