Expedia reported lower quarterly revenue and profit due to higher promotions and discounts to promote new hotel listings.

Net income attributable to Expedia fell to USD$31.6 million from USD$449.6 million a year earlier, when it recorded a USD$395 million after-tax gain on the sale of eLong.

Second-quarter revenue rose to USD$2.20 billion from USD$1.66 billion.

Expedia, which owns a majority stake in Trivago, and the founders of that travel website have agreed to explore the feasibility of taking the business public, Expedia said.

The online travel services company said its bookings in the latest quarter slowed due to the acquisition of rival Orbitz, "self-inflicted" wounds such as technology upgrades and the recent spate of attacks in Europe.

However, bookings out of the United States into London accelerated once the pound fell against the dollar following Britain's vote on June 23 to leave the European Union, he said.

The higher promotions and discounts by Expedia led to a 5 percent drop in revenue per room night in the second quarter ended June 30.

The company, which owns Expedia.com, Hotels.com, Hotwire and other brands, said it expects revenue per room night to decrease through 2016.

Hotel room night bookings rose 20 percent in the quarter, excluding eLong, a Chinese travel website it sold in May 2015. But the growth was slower than the 35 percent increase a year earlier.

Even the 25 percent rise to USD$18.86 billion in gross bookings on Expedia sites, excluding eLong, was the slowest in three quarters.

Expedia said it expects organic hotel room night bookings to improve later this year, but cautioned that a continued slowdown would mean full-year EBITDA would be at the lower end of its forecast.

The Bellevue, Washington-based company expects EBITDA to grow 35-45 percent this year.