Chinese Internet Travel Revs Rise, But Profit Still Low For eLong.com

Chinese online travel website eLong Inc. reported its unaudited financial results for the fourth quarter and full year ended December 31, 2010.

Net revenues via eLong.com for the fourth quarter increased 23% to CNY124.1 million, compared to CNY100.9 million in the fourth quarter of 2009. Net revenues in 2010 increased 35% year-on-year to CNY481.9 million, compared to CNY357.9 million.

Net income was still low and increased to CNY4.2 million, compared to CNY1.0 million in the fourth quarter of 2009. For the full year 2010, net income increased to CNY20.6 million, compared to CNY19.9 million in the prior year period.

Hotel room nights booked through eLong in the fourth quarter increased 39% to 1.7 million room nights compared to 1.2 million in the prior year period. Domestic hotel coverage network expanded 76% to 17,200 domestic hotels as of December 31, 2010, compared to 9,800 as of December 31, 2009. In December 2010, eLong acquired a 20% stake of Zhuna.cn, a Beijing-based, online provider of hotel booking services, with an option to acquire the remainder of Zhuna.cn in the future.

Income from operations in 2010 increased 321% year-on-year to CNY47.1 million, compared to CNY11.2 million. Operating margin in 2010 was 9.8% compared to 3.1% in the prior year. Net income increased to CNY20.6 million, compared to CNY19.9 million in the prior year period. Hotel room nights booked through eLong in 2010 grew 49% to 6.4 million room nights compared to 4.3 million in the prior year.