TRIPV Tripadvisor, Inc. (MM)

TripAdvisor Inc. said lower hotel revenue and rising expenses stemming from efforts to expand the business dragged second-quarter results.

The company's earnings and revenue figures came in well below analysts' expectations, sending the stock 7.5% lower in after-hours trading. Through Wednesday's close, shares have lost 18% this year.

The online travel company, spun off in 2011 from now-rival Expedia Inc., operates sites including Jetsetter.com, the tour and activity booker Viator.com and restaurant reservation site TheFork.com in addition to its namesake site that is known for users' hotel reviews. As competition heats up from sites ranging from Kayak to Airbnb, TripAdvisor has been trying to beef up its offerings while spending more on advertising.

In the latest quarter, TripAdvisor brought in $316 million in hotel revenue, down 7.9% from a year earlier. Though the company is working to diversify the business, hotel revenue still makes up about 80% of its top line.

Meanwhile, TripAdvisor spent more on marketing, with those costs rising 5.2% from the year ago quarter and jumping 17% sequentially. Chief Executive Steve Kaufer tried to reassure investors that the company is spending on key initiatives that will improve the business, such as mobile offerings and increased bookable supply. "We continue to play the long game as we navigate our business," Mr. Kaufer said.

For the quarter, the company reported a profit of $34 million, or 23 cents a share, down from $58 million, or 40 cents a share, a year earlier. Excluding stock-based compensation expenses, among other items, profit per share fell to 38 cents from 54 cents.

Revenue slipped 3.5% to $391 million. Analysts projected 42 cents in adjusted earnings per share and $402.6 million in revenue, according to Thomson Reuters.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

August 03, 2016 17:45 ET (21:45 GMT)

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