Ctrip achieves revenue gains in Q2

SHANGHAI  Chinese travel giant, Ctrip.com International, listed on Nasdaq, reported net revenues for the second quarter reached RMB4.4 billion (USD664 million), up 75% year-on-year.

It was part of its report on its second quarter unaudited financial results up to 30 June.

Despite a tough comparable base in the second quarter of 2015, the accommodation reservations business experienced healthy growth Q2, driven by strong increases in both volume and revenue per room night.

The transportation ticketing business continued to see strong volume growth, benefiting from the strong execution, increasing contribution of new business units, and recent investments.

Operating margin for the second quarter was -9%, increasing meaningfully from -44% in the previous quarter.

“Ctrip continued to execute strongly in the second quarter of 2016, delivering solid top line growth and healthy margin expansion,” said Ctrip chairman of the Board and Chief Executive Officer, James Liang.

“We will continue to strengthen our industry leadership by focusing on our one-stop online travel platform, expanding international travel inventory coverage, and improving operating efficiency.”

Packaged-tour revenues for the second quarter of 2016 were RMB474 million (USD71 million), representing a 44% increase from the same period in 2015, primarily driven by an increase in volume growth of organized tours and self-guided tours. Packaged-tour revenues for the second quarter of 2016 decreased 15% from the previous quarter, primarily due to seasonality.

Accommodation reservation revenues for the second quarter of 2016 were RMB1.8 billion (USD267 million), representing a 61% increase from the same period in 2015 and a 10% increase from the previous quarter, primarily driven by an increase in accommodation reservation volume.

Transportation ticketing revenues for the second quarter of 2016 were RMB2.0 billion (USD301 million), representing a 90% increase from the same period in 2015 and a 3% increase from the previous quarter.

Corporate travel revenues for the second quarter of 2016 were RMB147 million (USD22 million), representing a 22% increase from the same period in 2015 and a 27% increase from the previous quarter, primarily driven by increased corporate travel demand from business activities.

For the third quarter of 2016, the Company expects the net revenue growth to continue at a year-on-year rate of approximately 70 to 75%..

sourced:ttrweekly.com