Ctrip.com Posts Q3 China Internet Travel Financial Results
China’s top online travel website Ctrip.com International Ltd. today announced its unaudited financial results for the third quarter ended September 30, 2010, and stated total revenues of CNY863 million, representing a 48% increase from the same period in 2009 and a 16% increase from the previous quarter.
“The 2010 Shanghai World Expo has boosted travel industry in China,” said Min Fan, president and CEO of Ctrip. “Ctrip team capitalized this opportunity and delivered solid results in the third quarter of 2010. With the growing travel demand, Ctrip will continuously strengthen our supplier relationships, enhance our customer services, and gain market share through our concerted efforts.”
The Shanghai World Expo ended at the end of October 2010, so reliance on this as an ongoing revenue stream has stopped. In the third quarter, the company’s related business entities Wing On Travel and ezTravel contributed 11% for the year-on-year growth for net revenues. Gross margin was 78% for the third quarter of 2010, compared to 77% in the same period in 2009.
Net income attributable to Ctrip’s shareholders during the third quarter was CNY320 million in the third quarter of 2010, up 70% year-on-year.
Income from operations was CNY308 million for the third quarter of 2010, up 55% year-on-year. Excluding non-GAAP share-based compensation charges, income from operations was CNY368 million, up 63% year-on-year. Operating margin was 38% for the third quarter of 2010, compared to 37% in the same period in 2009.
Hotel reservation revenues amounted to CNY350 million for the third quarter of 2010, representing a 36% increase year-on-year, primarily driven by an increase of 30% in hotel reservation volume, and an increase of 5% commission per room night year-on-year. Hotel reservation revenues increased 11% quarter-on-quarter, primarily driven by the increase in hotel reservation volume.
Air ticket booking revenues for the third quarter of 2010 were CNY315 million, representing a 36% increase year-on-year, primarily driven by a 30% increase in air ticketing sales volume, and a 4% increase in commission per ticket year-on-year. Air ticket booking revenues increased 3% quarter-on-quarter. Packaged-tour revenues for the third quarter of 2010 were CNY141 million, representing a 161% increase year-on-year and a 110% increase quarter-on-quarter, due to the increase of leisure travel volume and seasonality. Wing On Travel and ezTravel contributed 108% for the year-on-year growth for packaged-tour revenues.
Corporate travel revenues for the third quarter of 2010 were CNY34 million, representing a 37% increase year-on-year and a 1% increase quarter-on-quarter, primarily driven by the increased corporate travel demand from business activities.
As of September 30, 2010, the balance of cash, restricted cash and short-term investment was CNY3.1 billion.