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Ctrip.com reports revenue increase of 30%, expects slower China growth

August 14, 2008 | Online Travel

Ctrip.com posted its unaudited financial results for the quarter ended June 30, 2008 and said net revenues were CNY375 million, up 30% year-on-year, but the company only expects third quarter growth to be in the range of 15-20%.

For the second quarter of 2008, Ctrip reported total revenues of CNY402 million, representing a 30% increase from the same period in 2007 and a 10% increase from the previous quarter. Hotel reservation revenues amounted to CNY196 million for the second quarter of 2008, representing a 14% increase from the same period in 2007 and the previous quarter primarily due to increased volume in hotel bookings. Air-ticketing revenues for the second quarter of 2008 were CNY169 million, representing a 44% increase from the same period in 2007 and a 6% increase from the previous quarter, primarily due to increased air ticketing volume. Packaged-tour revenues for the second quarter of 2008 were CNY24 million, up 85% from the same period in 2007 primarily due to the increased leisure travel volume, and a decrease of 11% from the previous quarter due to seasonality.

Gross margin was 79% in the second quarter of 2008, remaining relatively consistent with 80% in the same period in 2007 and in the previous quarter. Operating margin was 34% in the second quarter of 2008, compared to 33% in the second quarter of 2007 and 32% in the previous quarter.

Net income for the second quarter of 2008 was CNY119 million, representing a 35% increase from the same period in 2007, and a 21% increase from the previous quarter.

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