SHANGHAI, China, Aug. 6 /Xinhua-PRNewswire-FirstCall/ -- Ctrip.com International, Ltd. (Nasdaq: CTRP - News), a leading travel service provider for hotel accommodations, airline tickets and packaged tours in China, today announced its unaudited financial results for the quarter ended June 30, 2007.
Effective on July 31, 2007, the ratio of Ctrip´s ADSs to ordinary shares was changed from one ADS representing one ordinary share to two ADSs representing one ordinary share, retroactive to all previous periods. This ratio change had the same effect as a two for one ADS split. The information in this press release reflects this ratio change for all the periods presented.
Highlights for the second quarter of 2007
-- Net revenues were RMB288 million (US$38 million) in the second quarter of 2007, up 52% year-on-year.
-- Gross margin was 80% in the second quarter of 2007, compared to 81% in the same period in 2006 largely due to higher cost of service as a result of increased revenue contribution from air ticketing and packaged tour businesses.
-- Income from operations was RMB95 million (US$13 million) in the second quarter of 2007. Excluding share-based compensation charges (non- GAAP), income from operations was RMB118 million (US$16 million), up 49% year-on-year.
-- Operating margin was 33% in the second quarter of 2007. Excluding share-based compensation charges (non-GAAP), operating margin was 41%, compared to 42% during the same period in 2006.
-- Net income was RMB88 million (US$12 million) in the second quarter of 2007. Excluding share-based compensation charges (non-GAAP), net income was RMB111 million (US$15 million), up 51% year-on-year.
-- Diluted earnings per ADS were RMB1.30 (US$0.17). Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB1.64 (US$0.22).
-- Share-based compensation charges were RMB23 million (US$3 million), accounting for 8% of the net revenues, or RMB0.34 (US$0.04) per ADS for the second quarter of 2007.
"The robust growth of our core businesses contributed to the strong financial results in the second quarter of 2007," said Min Fan, Chief Executive Officer of Ctrip. "We continued to enrich our service offerings, expand our coverage geographically and focus on delivering superior customer experience. All these efforts have enabled us to acquire a larger customer base and increase market share."
Financial results for the second quarter of 2007
For the second quarter of 2007, Ctrip reported total revenues of RMB309 million (US$41million), representing a 53% increase from the same period in 2006 and a 24% increase from the previous quarter.
Hotel reservation revenues totaled RMB171 million (US$23 million) for the second quarter of 2007, representing a 45% increase from the same period in 2006 and a 28% increase from the previous quarter primarily due to increased volume in hotel bookings.
The total number of hotel room nights booked was approximately 2.41 million in the second quarter of 2007, compared to approximately 1.70 million for the same period in 2006 and approximately 1.92 million room nights in the previous quarter.
Air ticket booking revenues for the second quarter of 2007 were RMB117 million (US$15 million), representing a 67% increase from the same period in 2006, primarily due to strong growth of air tickets sales volume. Air ticket booking revenues for the second quarter of 2007 increased 24% from the previous quarter, primarily due to the growth of air tickets sales volume and increased commission per ticket sold.
The total number of air tickets sold in the second quarter of 2007 was approximately 2.55 million, compared to approximately 1.49 million for the same period in 2006 and approximately 2.22 million in the previous quarter.
Packaged-tour revenues for the second quarter of 2007 were RMB13 million (US$2 million), up 49% from the same period in 2006 and decreased by 20% from the previous quarter due to seasonality.
For the second quarter of 2007, net revenues were RMB288 million (US$38 million), a 52% increase from the same period in 2006. Net revenues increased by 24% from the previous quarter.
The gross margin was 80% in the second quarter of 2007, compared to 81% for the same period in 2006 and 79% in the previous quarter. The change in gross margin was largely related to the revenue mix among hotel reservations, air ticketing and packaged tour businesses.
Income from operations for the second quarter of 2007 was RMB95 million (US$13 million). Excluding share-based compensation charges (non-GAAP), income from operations was RMB118 million (US$16 million), increased by 49% from the same period in 2006, and 32% from the previous quarter.
Operating margin was 33% in the second quarter of 2007. Excluding share- based compensation charges (non-GAAP), operating margin was 41% compared to 42% in the same period in 2006 and 39% in the previous quarter.
Net income for the second quarter of 2007 was RMB88 million (US$12 million). Excluding share-based compensation charges (non-GAAP), net income was RMB111 million (US$15 million), representing a 51% increase from the same period in 2006 and a 33% increase from the previous quarter, mainly due to higher income from operations.
The diluted earnings per ADS were RMB1.30 (US$0.17) and the diluted earnings per ordinary share were RMB2.60 (US$0.34). Excluding share-based compensation charges (non-GAAP), the diluted earnings per ADS were RMB1.64 (US$0.22) for the second quarter of 2007.
As of June 30, 2007, Ctrip´s cash balance increased to RMB978 million (US$128 million), compared to RMB866 million as of March 31, 2007.
Business Outlook
For the third quarter of 2007, Ctrip expects to continue strong year-on- year net revenue growth of approximately 35%.
