China’s top OTA Ctrip.com has announced its unaudited financial results for the second quarter that ended June 30, 2015.
China's No 1 OTA Ctrip
"We saw continued robust growth across all business lines," said James Liang, Chairman of the Board and Chief Executive Officer of Ctrip. "Both our accommodation reservation and transportation ticketing businesses reached record-high revenues of over RMB1 billion, a landmark achievement in China's online travel industry. Accommodation reservation, air ticketing and transportation ticketing maintained strong year-over-year volume growth of 55%, 60% and 106% respectively, with high revenue quality and sales and marketing efficiency. Such performance, coupled with increased revenue generation and improved cost control of our new businesses, has allowed us to remain the most profitable travel company in China. We will continue to enhance our core competencies, strengthen our leadership and strive for a balance between investment and profitability in the coming quarters."
Highlights for Ctrip’s Q2 2015
· Net revenues were RMB2.53 billion (US$408 million) for the second quarter of 2015, up 47% y-o-y.
· Net commission earned (non-GAAP) was RMB2.49 billion for the second quarter, up 45% y-o-y.
· Accommodation reservation volume increased 55% year-on-year, and accommodation reservation revenues increased 47% y-o-y, reaching RMB1.1 billion (US$178 million) for the second quarter of 2015.
· Transportation ticketing volume increased 106% year-on-year, and transportation ticketing revenues increased 45% y-o-y, reaching RMB1.1 billion (US$170 million) for the second quarter of 2015.
· Gross margin was 71% for the second quarter of 2015, compared to 72% in the same period in 2014, and 70% in the previous quarter.
· Net income attributable to Ctrip's shareholders was RMB143 million (US$23 million) for the second quarter of 2015, compared to RMB135 million (US$22 million) in the same period in 2014.
The diversification of Ctrip’s services is also picking up and adding new areas for growth. Its packaged-tour revenues for the second quarter of 2015 were RMB329 million (US$53 million), representing a 61% increase y-o-y, primarily driven by an increase in volume growth of organized tours and self-guided tours. Corporate travel revenues for the second quarter of 2015 were RMB121 million (US$19 million), representing a 34% increase y-o-y, primarily driven by the increased corporate travel demand from business activities. Corporate travel revenues increased by 30% quarter-on-quarter, primarily due to seasonality.
Recent Developments and Q2 investments
Back in May, Expedia sold its 62.4% majority stake in eLong to several Chinese purchasers including Ctrip.com, and Plateno Group Limited for a total purchase price of approximately $671 million. Expedia and Ctrip also agreed to cooperate with each other to allow their respective customers to benefit from certain travel product offerings for specified geographic markets effectively leaving the Chinese market to Ctrip.
As of August 3, 2015, Ctrip had purchased approximately 20 million ADSs in aggregate with a total consideration ofUS$474 million.
Business Outlook
For the third quarter of 2015, Ctrip expects to continue net revenue growth y-o-y at a rate of approximately 45-50%.
Ctrip's press release
