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Citadel Advisors add new position in Liberty TripAdvisors

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Citadel Advisors and Liberty TripAdvisors

Citadel Advisors’ new stock purchases include Workday, Inc. (WDAY) and Liberty TripAdvisors (LTRPA). The hedge fund exited positions in United Rentals (URI) and Akron, Inc. (AKRX). Citadel Advisors also increased positions in Tesoro Petroleum Co. (TSO), Actavis Plc (ACT), Antero Resources Corp. (AR), and Anadarko Petroleum (APC). The firm decreased positions in Apple (AAPL), Citigroup (C), and Invesco Ltd. (IVZ).

Liberty TripAdvisors is a new position for Citadel Advisors in the third quarter. It accounts for 0.23% of the total portfolio.

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Liberty TripAdvisors’ holdings

Liberty TripAdvisors consists of its subsidiaries—mainly TripAdvisor and BuySeasons. TripAdvisor is the world’s largest online travel community. Travelers can write reviews and give their opinions about restaurants, activities, and accommodations worldwide. BuySeasons is a leading online costume and party supply retailer.

Liberty TripAdvisors is a company that engages in online advertising and e-commerce. Through its subsidiaries mentioned above, the firm offers a travel platform. The company is headquartered in Englewood, Colorado.

3Q14 results

In the 3Q14, Liberty TripAdvisors reported revenues of $375 million. This was an increase of more than $100 million—compared to the same period in 2013. The revenues increased by over 39% on a year-over-year, or YoY, basis. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased to $119 million. This was an increase of 34% YoY.

For 3Q14, the operating income increased by 70% YoY. This shows that Liberty TripAdvisors’ operational efficiency increased significantly. The cash and liquid investments decreased by $57 million due to the acquisition of Viator.

Viator and Lafourchette

In July 2014, Liberty TripAdvisors’ subsidiary, TripAdvisor, announced the acquisition of Viator for ~$200 million. It plans to expand into in-destination tours and activities. Viator is a website that’s operated by travel enthusiasts. The website describes the best tours and other leisure activities. It’s visited by over 3 million people. Viator has access to bookings for over 20,000 tours in more than 1,500 destinations. It has 6,000,000 reviews submitted by travelers.

In addition to this acquisition, the firm also acquired Lafourchette for restaurant reservations. Viator is a leading company in its segment. It will help travelers plan and schedule their travel process. The acquisition of Lafourchette will cover restaurant reservations in France and Spain.

The next part in this series will explore Citadel Advisors’ exited position in United Rentals.

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