The Chinese online travel giant generated a net profit of US$23m for the three months to 30 June 2015, up 6% year-on-year. This result was driven by a 47% jump in revenues as the company experienced a 55% increase in accommodation reservations, a 60% rise in air tickets booked, and a 106% surge in transport tickets.
“We saw continued robust growth across all business lines,” said James Liang, chairman & CEO of Ctrip. “Both our accommodation reservation and transportation ticketing businesses reached record-high revenues of over CNY1 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. 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.”
Driven by the strong Chinese domestic and outbound travel markets, Ctrip has seen strong sales and revenue growth in recent years. But these financial gains have generally been offset by soaring costs. In Q2 2015, Ctrip’s product development expenses increased by 66% to CNY797m, while sales and marketing costs climbed 42% to CNY679m.
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