Ctrip Reports Increased Online Travel Income, Expects Slower China Growth

Chinese Internet travel website 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%.

"Although the travel industry in China encountered many difficulties during the second quarter of 2008 after the Sichuan earthquake, Ctrip delivered solid revenue and earnings growth," said Min Fan, CEO of Ctrip. "Our team has demonstrated its leadership in the challenging market and will continue to deliver its promises to customers and shareholders."

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.

As of June 30, 2008, the balance of cash and short-term investment was CNY1.3 billion.