Booking Holdings reported that its results for the 1st quarter of 2020 have been significantly and negatively impacted due to the COVID-19 pandemic and the resulting economic conditions and government orders.
Gross travel bookings in the quarter were USD 12.4 billion, a decrease of 51% over a year ago. Room nights booked in the 1st quarter decreased 43% over a year ago.
Booking Holdings' total revenues for the 1st quarter of 2020 were USD 2.3 billion, a 19% decrease from the prior year. The Company reported a net loss in the 1st quarter of USD 699 million, compared with net income in the 1st quarter of 2019 of USD 765 million.
Investments in Trip.com Group
At March 31, 2020, the company had USD 775 million invested in convertible senior notes issued at par value by Trip.com Group with maturity dates ranging from May 2020 to December 2025. The strategic investments in Trip.com Group convertible senior notes, excluding USD 250 million of convertible notes due May 2020, were classified as "Long-term investments" in the Consolidated Balance Sheet at March 31, 2020.
Booking Holdings said it did not intend to sell its investment in Trip.com Group convertible debt securities prior to their anticipated recovery.
At December 31, 2019, the company had USD 655 million invested in Trip.com Group ADSs with a fair value of USD 726 million, which is reported in "Long-term investments" at the time. But in the three months ended March 31, 2020, the Company sold a portion of its investment in the ADSs, with a cost basis of USD 124 million, for USD 94 million.
Subsequent to March 31, 2020, the company sold its remaining investment in the ADSs, with a cost basis of USD 531 million, for USD 431 million. By then, Booking Holdings had lost more than USD 100 million in its equity investments in Trip.com Group.
