Ctrip’s net revenues up 47% year-on-year

May 15, 2008 | Online Travel

China's top online travel agent, Ctrip.com, beat forecasts with a 52 percent rise in quarterly net profit, but its shares slid 10 percent in after-hours trade amid fears over the impact of China's devastating earthquake.

For the first quarter of 2008, Ctrip reported total revenues of RMB367 million (US$52 million), representing a 47% increase from the same period in 2007 and a 4% decrease from the previous quarter.

Hotel reservation revenues amounted to RMB171 million (US$24 million) for the first quarter of 2008, representing a 28% increase from the same period in 2007 primarily due to increased hotel booking volume and a 13% decrease from the previous quarter primarily due to decreased hotel booking volume during the Chinese New Year holidays.

Air-ticketing revenues for the first quarter of 2008 were RMB159 million (US$23 million), representing a 68% increase from the same period in 2007 and a 3% increase from the previous quarter, primarily due to increased air ticketing volume.

Packaged-tour revenues for the first quarter of 2008 were RMB27 million (US$4 million), up 67% from the same period in 2007 and 22% from the previous quarter, primarily due to the increased leisure travel volume in the first quarter of 2008.

For the first quarter of 2008, net revenues were RMB340 million (US$49 million), a 47% increase from the same period in 2007. Net revenues decreased by 4% from the previous quarter.

Gross margin was 80% in the first quarter of 2008, remaining relatively consistent with 79% in the same period in 2007 and 81% in the previous quarter.

‘’During the first quarter of 2008, we achieved strong financial results despite of the challenges due to weather conditions,’’ said Min Fan, Chief Executive Officer of Ctrip. ‘’We are not only gaining new customers and business, but we are also strengthening our brand recognition in the travel industry. We will continue to provide high quality service to our customers. We believe Ctrip will be able to improve its position in this promising and challenging market.’’