The Perils Of Misinterpreting Conference Calls - Universal Go Grouping Together With Priceline Edition

On xv September 2010 I wrote the first of a serial of weblog posts which implied that Universal Travel Group was probable a fraud.

I am happy to survive somewhat to a greater extent than at i time at nowadays because the CEO, CFO together with the company convey settled fraud charges alongside the SEC for cash.

Still, non everybody agreed alongside the analysis together with they pointed to a partnership alongside Agoda (a subsidiary of Priceline) which was announced on thirteen July 2010. Moreover the CEO of Priceline inwards a conference telephone band (3 August 2010) seemed to endorse Universal Travel.

To quote:

Douglas Anmuth (Barclays Capital, Research Division) 

First on the air tickets, yous saw around little re-acceleration, together with I think, on an easier comp inwards 2Q, but tin yous utter nearly whether you're seeing whatsoever touching on from higher airfares on leisure travel? And then, secondly, tin yous plough over us around to a greater extent than coloring cloth on Agoda's partnership alongside Universal Travel Group together with how you're thinking nearly this strategically going forward? 

Jeffery H. Boyd (Chairman, Chief Executive Officer) 

Dan, why don’t yous hitting the airfare, together with I’ll create Universal Travel? 

Daniel J. Finnegan (Chief Financial Officer, Chief Accounting Officer) 

Doug, nosotros are seeing around softness inwards airline ticket demand, given the increase inwards airfares, together with nosotros likewise run across around touching on for our Domestic draw organisation on online advertising expense equally a percent of gross profits. So those higher prices are driving to a greater extent than clicks equally people store to a greater extent than together with endeavor together with await for improve prices out there. So nosotros are seeing around touching on from that. But again, only to emphasize that airline tickets are a pretty little business office of our full gross profit, together with what we're seeing at that spot inwards terms of softness is built into our forecast for Q3. 

Jeffery H. Boyd 

And alongside honor to Agoda together with Universal Travel, they're edifice their distribution through other go websites inwards the region, together with I intend this only represents their continued progress on that front.

And hence people idea (incorrectly) that Universal Travel were edifice their distribution together with that the bargain was real.

In reality Agoda was happily allowing other people to display their hotel inventory together with the Priceline CEO idea that this was one-of-those-deals. His reply relates to Agoda. At to the lowest degree I intend it does. (Other people had a different opinion... but that sentiment at nowadays requires that yous intend that Jeffery Boyd was a player inwards the Universal Travel fraud... something that seems unlikely.)

In retrospect Jeffery Boyd in all likelihood should convey given a to a greater extent than just worded answer...




John