Ctrip announced its unaudited financial results for the first quarter ended March 31, 2017:
Key Highlights
* Net revenues increased 46% year-on-year to RMB 6.1 billion
* Accommodation revenues were RMB 2.1 billion (USD 301 million), up by 28% YoY
* Transportation ticketing revenues were RMB 2.9 billion (USD 418 million), a 48% increase
* Gross margin was 80%, improving from 73% in Q1 2016 and 78% in Q4 2016
* Net income attributable to shareholders was RMB 82 million (USD 12 million), compared to net loss of RMB 1.6 billion in Q1 2016 and net income of RMB 645 million in Q4 2016
* Presence in lower tier cities was strengthened
"This is the first quarter we consolidated Skyscanner results," said James Liang, Executive Chairman. "By leveraging Skyscanner and other strategic overseas investments, we expect to further strengthen our international product offerings and improve user experiences for both Chinese and international travelers."
"We kicked off 2017 with great results," said Jane Jie Sun, Chief Executive Officer. "The group has continued to achieve healthy revenue growth and margin expansion. We have also been making great strides in penetrating into lower-tier cities and expanding into international markets, thanks to our teams' strong execution and strategic investments."
First Quarter Results and Updates
For the first quarter of 2017, Ctrip reported net revenues of RMB 6.1 billion (USD 884 million), representing a 46% increase from the same period in 2016. Net revenues for the first quarter of 2017 increased 20% from the previous quarter.
Accommodation reservation revenues were RMB 2.1 billion (USD 301 million), up by 28% YoY, primarily driven by an increase in accommodation reservation volume. Accommodation reservation revenues increased 12% from the previous quarter.
Transportation ticketing revenues were RMB 2.9 billion (USD 418 million), representing a 48% increase from the same period in 2016, primarily driven by an increase in ticketing volume and the consolidation of Skyscanner's financial results since December 31, 2016. Transportation ticketing revenues increased 106% in Q1 2016.
Packaged-tour revenues were RMB 702 million (USD 102 million), representing a 26% increase from the same period in 2016, primarily driven by an increase in volume growth of organized tours and self-guided tours. Packaged-tour revenues increased 50% from the previous quarter, primarily due to seasonality.
Corporate travel revenues for the first quarter of 2017 were RMB 144 million (USD 21 million), representing a 25% increase from the same period in 2016, primarily driven by expansion in travel product coverage. Corporate travel revenue decreased 19% from the previous quarter, primarily due to seasonality.
Gross margin was 80% for the first quarter of 2017, compared to 73% in the same period in 2016, and 78% in the previous period.
Sales and marketing expenses for the quarter increased by 22% to RMB 1.9 billion (USD 273 million) from the same period in 2016 and increased 28% from the previous quarter. Sales and marketing expenses for the first quarter of 2017 accounted for 31% of the net revenues.
Income from operations was RMB 414 million (USD 60 million), compared to loss of RMB 1.8 billion in the same period in 2016 and income of RMB 207 million in the previous quarter.
Net income attributable to Ctrip's shareholders was RMB 82 million (USD 12 million), compared to net loss of RMB 1.6 billion in the same period in 2016 and net income of RMB 645 million in the previous quarter.
As of March 31, 2017, the balance of cash and cash equivalents, restricted cash and short-term investment was RMB 36 billion (USD 5 billion).
Business Outlook
For the second quarter of 2017, the Company expects the net revenue growth to continue at a year-on-year rate of approximately 40-45%.
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