Ctrip Reports Strong Financial Results in 2017 Q2
China Aviation Daily | Aug. 31, 2017
Ctrip.com International, Ltd., a leading travel service provider of accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China ("Ctrip" or the "Company"), today announced its unaudited financial results for the second quarter ended June 30, 2017.
Key Highlights
• Ctrip reported strong financial results in the second quarter of 2017.
Net revenue increased 45% year-on-year to 6.4 billion yuan in the second quarter of 2017.
The accommodation reservation business delivered healthy growth in the second quarter of 2017, primarily driven by the volume growth of organic businesses.
The transportation ticketing business also continued its strong growth, benefiting from solid execution of organic air ticketing business, fast growing new business units and the addition of Skyscanner to the Ctrip group.
Gross margin was 82% for the second quarter of 2017, improving from 72% for the same quarter of 2016 and 80% for the previous quarter, due to further efficiency gain.
Operating margin for the second quarter of 2017 was 10%. Excluding share-based compensation charges, Non-GAAP operating margin for the second quarter of 2017 was 18%, improving significantly from 4% for the same quarter a year of 2016, primarily driven by improvements in operating efficiency across the board and synergies from the invested companies.
• The company has continued to strengthen its position in lower-tier cities. Both new customer acquisition and user engagement in lower-tier cities improved significantly in the second quarter of 2017. Ctrip and Qunar have opened over 400 offline retail stores by the end of the quarter with approximately 200 more in the pipeline.
• Skyscanner has officially launched its "direct booking" business, which introduces travelers to a seamless booking experience. Conversion rates of mobile traffic for direct-booking partners have increased by approximately 50%.
"We are pleased with the strong operating and financial results in the second quarter." said Jane Jie Sun, Chief Executive Officer. "Ctrip maintained healthy revenue growth and achieved continual improvement in operating efficiency. The group will remain focused on operating fundamentals that create value for our customers and suppliers. We are confident that Ctrip will generate long-term value for shareholders in the years to come."
"The Ctrip group has made good progress in expanding into lower-tier cities and increasing presence in international markets in the first half of 2017," said James Jianzhang Liang, Executive Chairman. "We will continue to invest in these markets and keep improving our comprehensive product offering, providing superior services and driving effective marketing to serve both domestic and international customers."
Second Quarter of 2017 Financial Results and Business Updates
For the second quarter of 2017, Ctrip reported net revenue of 6.4 billion yuan (US$946 million), representing a 45% increase from the same period of 2016. Net revenue for the second quarter of 2017 increased 5% from the previous quarter.
Gross margin was 82% for the second quarter of 2017, compared to 72% for the same period of 2016, and 80% for the previous quarter.
Net income attributable to Ctrip's shareholders for the second quarter of 2017 was 327 million yuan (US$48 million), compared to net loss of 521 million yuan for the same period of 2016 and net income of 82 million yuan for the previous quarter, primarily due to the net gain recognized from a number of investing activities.
Diluted earnings per ADS were 0.59 yuan(US$0.09) for the second quarter of 2017. Excluding share-based compensation charges, Non-GAAP diluted earnings per ADS were 1.49 yuan(US$0.22) for the second quarter of 2017.
As of June 30, 2017, the balance of cash and cash equivalents, restricted cash and short-term investment was 42 billion yuan(US$6 billion).
Business Outlook
For the third quarter of 2017, the Company expects the net revenue growth to continue at a year-on-year rate of approximately 35-40%.
Contributed by Ctrip