| Preview Travel
Financial Results
By: David J. Wardell
© 1998 By: David J.
Wardell. Reproduction or redistribution in any form without
written permission is strictly prohibited. |
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| All public companies, including Preview
Travel (the high-profile online travel company) publish periodic
financial data. In an April 15, 1998 press release, Preview discusses
its performance for the quarter ending March 31, 1998. The press release
is very interesting reading. Some highlights follow:
Preview's online sales were $35.9 million (an increase of 36% over the prior quarter), which annualizes to $143.6 million in sales. The company's online transactions "exceeded 112,000," from which one can estimate an average transaction value of approximately $320. 18.9 million "visits" to Preview's sites were required to produce the sales, which is roughly a "visits" to transactions ratio of 168:1. The press release comments that the company's online transaction cost is $10.72. While online revenues grew 31% over the prior quarter, the company lost $4,688,000 on its total operation. |
