CYTS revenue drops 1.65% in first three quarters
State-owned travel agency CYTS recorded operating revenue of RMB 7.735 billion in first three quarters of 2016, down by 1.65% YoY. Net income was up by 53.15% YoY.
CYTS, one of the three major state-owned tour operators in China, issued its third-quarter financial statement in 2016. The company’s operating revenue was RMB 7.735 billion, down by 1.65% YoY. Net income attributable to the parent company’s shareholders was RMB 439 million, up by 53.15% YoY.
The company’s operating revenue in the third quarter declined 10.8% to RMB 2.759 billion and net income attributable to the parent company’s shareholders was RMB 121 million, down by 0.3% YoY. The slump in quarterly operating revenue was mainly due to the impact from the value-added tax reform in April.
The decline in net income was mainly due to the impact from depressed demand for the attraction of its subsidiary Wuzhen, in which CYTS owns 60%. The depressed demand is affecting eastern China across the board. The hosting of G20 Hangzhou Summit in September, for which the company’s PR unit Linkage helped host more than 30 events, was also blamed for the slide in net income.
Despite the negative impact from these factors, CYTS has served 7.05 million tourists during the first nine months of the year, 12.55% more than last year.
The company’s attraction business saw a 18.16% rise in operating revenue to RMB 1.028 billion in January to September and net income from the operation grew 46.67% to RMB 484 million. (Translated by Jerry)