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UPDATE 1-Priceline forecasts 2nd-qtr results below estimates, shares fall

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May 8 (Reuters) - Travel website owner Priceline Group Inc forecast second-quarter results below market estimates, saying a decline in its "name-your-own-price" business is hurting revenue growth.

Shares of the company, which owns travel websites Priceline.com, Booking.com and Kayak.com, fell about 4 percent before the bell.

Priceline's "name-your-own-price" services allow customers to offer their own price for a hotel room.

Instead of picking a hotel, the customer sets a price depending on location and star rating. Priceline then tries to match these requirements with a hotel in those categories.

The customer learns of the hotel name only if the offer is accepted.

Priceline also said it deferred advertising spending from the first quarter to the current quarter due to a severe winter in North America.

The company has stepped up advertising in the United States, a market previously dominated by Expedia Inc.

Priceline forecast an adjusted profit of $11.22-$12.02 per share for the second quarter ending June. (http://r.reuters.com/vyn29v)

The company said it expected revenue to rise 19-29 percent in the period, which translates into $2 billion-$2.17 billion.

Analysts on average were expecting earnings of $12.27 per share on revenue of $2.11 billion, according to Thomson Reuters I/B/E/S.

Higher hotel and car rental bookings helped Priceline report better-than-expected results for the first quarter ended March 31.

The company's net income rose to $331.2 million, or $6.25 per share, in the quarter from $244.2 million, or $4.76 per share, a year earlier.

Excluding items, Priceline earned $7.81 per share.

Revenue rose 26 percent to $1.64 billion.

Analysts on average had expected earnings of $6.92 per share on revenue of $1.63 billion.

The company's shares were at $1,087.50 in premarket trading on Thursday. The stock has gained about 57 percent in the past year.

(Reporting by Rohit T.K. in Bangalore; Editing by Kirti Pandey)

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