LONG Elong ADS Representing 2 Ordinary Shares (MM)

Expedia Inc.'s first-quarter revenue rose 39%, bolstered by acquisitions, though its loss widened sharply on higher spending.

Results beat expectations, sending shares up 11% to $119 in after-hours trading.

The travel giant, whose expenses have surged as it aggressively expands its business, had warned that technology and content spending would remain higher for the first half of the year as it integrates its new brands. On Thursday it reported a 69% increase from the year-ago period in adjusted technology and content spending.

Business acquisitions in 2015 included HomeAway, Orbitz Worldwide, AirAsia Expedia and Travelocity. Expedia also increased capital spending to build a new corporate headquarters in Seattle.

It has projected adjusted earnings before interest, taxes, depreciation and amortization to improve 35% to 45% in 2016 with Orbitz and HomeAway adding a combined $275 million to $325 million.

In the latest period, expenses surged to $2 billion, driving Expedia into a $102.4 million operating loss.

Over all, Expedia reported a loss of $121.9 million, or 81 cents a share, compared with a year-earlier profit of $44.1 million, or 34 cents a share. Excluding stock-based compensation and other items, Expedia reported a profit of 9 cents a share, compared with a loss of 3 cents a share a year earlier.

Revenue rose 39% to $1.90 billion.

Analysts surveyed by Thomson Reuters had projected a loss of 6 cents a share on $1.84 billion in revenue.

Gross bookings rose 32%, driven by more room rentals even as the company made less money on average from each rental. The amount of money Expedia makes from each room rental is expected to continue to fall on a year-over-year basis for the rest of the year.

Air revenue, meanwhile, rose 54%, also driven by a larger number of air tickets sold and slightly better profit margin for each ticket sold.

Results are adjusted to exclude eLong Inc. Expedia sold its stake in the company last May.

Launched in 1996 by a small division of Microsoft Corp., Expedia went public in 1999.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

April 28, 2016 17:35 ET (21:35 GMT)

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