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Ctrip accommodation revenues increase 70% in first quarter of 2016

06/16/2016| 4:31:26 PM| 中文

Accommodation reservation revenues of China's largest OTA increased by 70% in the first quarter of 2016.

Ctrip.com registered an accommodation revenues increase of 70% YoY in the first quarter of 2016, according to the company's latest earning report.

Highlights for the First Quarter of 2016

* Net revenues were RMB4.2 billion (USD 648 million) for the first quarter of 2016, up 80% year-on-year.

* Accommodation reservation revenues increased 70% year-on-year, reaching RMB1.6 billion (USD 250 million) for the first quarter of 2016.

* Transportation ticketing revenues increased 106% year-on-year, reaching RMB1.9 billion (USD 302 million) for the first quarter of 2016.

* Gross margin was 73% for the first quarter of 2016, compared to 70% in the same period in 2015, and remained consistent with the previous quarter.

* Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB257 million (USD 40 million), compared to RMB33 million (USD 5 million) in the same period in 2015.

"The first quarter of 2016 was a great quarter. Our team did an excellent job growing revenue and improving margins," said James Liang, Chairman of the Board and Chief Executive Officer of Ctrip. "Going forward, we plan to devote more resources to innovation and outbound travel to build a solid foundation for our sustainable long-term growth."

First Quarter of 2016 Financial Results and Business Updates

For the first quarter of 2016, Ctrip reported total revenues of RMB4.4 billion (USD 682 million), representing an 80% increase from the same period in 2015 and a 45% increase from the previous quarter, primarily due to the consolidation of the financial results of Qunar Cayman Islands Limited ("Qunar") starting from December 31, 2015.

Accommodation reservation revenues for the first quarter of 2016 were RMB1.6 billion (USD 250 million), representing a 70% increase from the same period in 2015 and a 36% increase from the previous quarter, primarily driven by an increase in accommodation reservation volume and the consolidation of Qunar's financial results since December 31, 2015.

Transportation ticketing revenues for the first quarter of 2016 were RMB1.9 billion (USD 302 million), representing a 106% increase from the same period in 2015 and a 57% increase from the previous quarter, primarily driven by an increase in ticketing volume and the consolidation of Qunar's financial results since December 31, 2015.

Packaged-tour revenues for the first quarter of 2016 were RMB556 million (USD 86 million), representing a 41% increase from the same period in 2015 and a 59% increase from the previous quarter, primarily driven by an increase in volume growth of organized tours and self-guided tours.

Corporate travel revenues for the first quarter of 2016 were RMB116 million (USD 18 million), representing a 25% increase from the same period in 2015, primarily driven by increased corporate travel demand from business activities. Corporate travel revenues decreased by 15% from the previous quarter, primarily due to seasonality.

For the first quarter of 2016, net revenues were RMB4.2 billion (USD 648 million), representing an 80% increase from the same period in 2015. Net revenues for the first quarter of 2016 increased by 45% from the previous quarter.

Gross margin was 73% for the first quarter of 2016, compared to 70% in the same period in 2015 and remained consistent with the previous quarter.

Product development expenses for the first quarter of 2016 increased by 196% to RMB2.4 billion (USD 372 million) from the same period in 2015 and increased by 179% from the previous quarter, primarily due to the one time transaction related share-based compensation charges as well as the consolidation of Qunar's financial results since December 31, 2015.

Sales and marketing expenses for the first quarter of 2016 increased by 114% to RMB1.5 billion (USD 239 million) from the same period in 2015 and increased by 82% from the previous quarter, primarily due to the one time transaction related share-based compensation charges as well as the consolidation of Qunar's financial results since December 31, 2015. 

General and administrative expenses for the first quarter of 2016 increased by 258% to RMB929 million (USD 144 million) from the same period in 2015 and 203% from the previous quarter, primarily due to the one time transaction related share-based compensation charges as well as the consolidation of Qunar's financial results since December 31, 2015. 

Loss from operations for the first quarter of 2016 was RMB1.8 billion (USD 283million), compared to loss of RMB180 million (USD 29 million) in the same period in 2015 and income from operations of RMB95 million (USD 15 million) in the previous quarter. 

Operating margin was -44% for the first quarter of 2016, compared to -8% in the same period in 2015, and 3% in the previous quarter. 

Net loss attributable to Ctrip's shareholders for the first quarter of 2016 was RMB1.6 billion (USD 245 million), compared to net loss of RMB126 million (USD 20 million) in the same period in 2015 and net income of RMB76 million (USD 12 million) in the previous quarter, mainly due to the consolidation of Qunar's net loss of RMB1.1 billion (USD 167 million). Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB257 million (USD 40 million), compared to RMB33 million (USD 5 million) in the same period in 2015 and RMB272 million (USD 42 million) in the previous quarter.

As of March 31, 2016, the balance of cash and cash equivalents, restricted cash and short-term investment was RMB20.9 billion (USD 3.2 billion).

In the first quarter of 2016, Ctrip recognized share-based compensation charges of RMB1.8 billion (USD 285 million). The increase of share-based compensation charges is primarily due to the consolidation of Qunar's share-based compensation charges and the one time transaction related share-based compensation charges.

Business Outlook

For the second quarter of 2016, the Company expects the net revenue growth to continue at a year-on-year rate of approximately 70-75%. This forecast reflects Ctrip's current and preliminary view, which is subject to change.

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TAGS: Ctrip | Qunar | financial statements
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