Priceline to open HK site in April

HONG KONG, China (CNN) -- The name-your-own-price travel Web site Priceline.com is making Hong Kong its first destination in Asia with its doors set to open in April.

Priceline.com's foray is coming with the support of Hong Kong tycoon Li Ka-Shing.

The expansion comes as Priceline.com's share price languishes in the doldrums. The once high-flying Internet stock has plunged 94 percent from its record closing high two years ago.

CNN correspondent Kristie Lu Stout talked to Richard Braddock, the CEO and Chairman of Priceline.com, and asked how he's planning to adapt his service to Asian tastes.

RICHARD BRADDOCK:

Well we think quite well, actually. First of all, the Internet is still growing as a phenomenon in Asia relative to the United States where Priceline has been in business for three or four years. But there's a great mentality out here for what we offer, which is great value and savings. Everything I hear out here is that people in Asia love bargains. And we're here to give them some good ones.

KRISTIE LU STOUT:

That's true. Now, after two quarters of profitability, just last month you announced a net loss for the fourth quarter. Understandably, it's a tough market environment out there. How do you plan to manage the company during this difficult time?

RICHARD BRADDOCK:

Well first of all we feel very good about where we are now versus say a year ago when we were rather unprofitable and had to launch a turnaround plan to the market. We've now made pro forma profitability three quarters in a row and GAAP profitability in the last three. The last quarter is our worst quarter seasonally. Having said all that, the travel business is still in a bit of turmoil particularly back in the States. Therefore we do have management challenges moving through that, but we are very confident in our future.

KRISTIE LU STOUT:

Now over the last year there have been reports of Hong Kong tycoon Li Ka-Shing planning to lift his stake in Priceline. And every time a report came out, your stock price would jump. At one point it jumped 28 percent. How do you feel about that?

RICHARD BRADDOCK:

The Chairman is I think known worldwide as a very astute investor. And as I said before, Priceline had been coming off a time of having a rather short-term tale of woes. So when he announced his increased stake, which we certainly welcome -- they own about 32 percent of Priceline with basically three transactions. We're very happy about the way he's arrived, and the way he's supported the company. I consider him a friend in addition to a good investor.

KRISTIE LU STOUT:

And a powerful friend too, especially in these parts.

RICHARD BRADDOCK:

Very powerful.

KRISTIE LU STOUT:

Now, Priceline.com makes money. You have no debt. Earnings are growing. And recently in the last week, there have been market rumblings saying Priceline.com would make an ideal acquisition target. Your reaction to that?

RICHARD BRADDOCK:

Well of course on camera, we never comment about situations like that. But I have to say it's sort of a nice commentary on Priceline again going back to what I said. A year ago I think people were wondering if we were going to survive the dotcom meltdown, which we obviously have. And I think it's a sort of endorsement of our current progress that we are in that type of rumor mill now.