Ctrip.com Shares Soar 9% As Q2 Results Top View, Rosy Outlook

(RTTNews) - Shares of Ctrip.com International Ltd. (CTRP) soared more than nine percent in extended trading on Thursday after the Chinese travel services provider reported results for the second quarter that came in significantly above analysts' expectations.

The company also reported a profit for the quarter that surged 76 percent from last year, despite lower operating margins, reflecting strong double-digit revenue growth.

Looking ahead to the third quarter, the company forecast net revenue growth of about 20 to 25 percent from the prior-year period.

Ctrip.com International provides travel service of hotel accommodations, airline tickets, packaged tours and corporate travel management in China.

"We are pleased to report strong results in the second quarter of 2013. Mobile Internet is changing the travel industry rapidly and our mobile strategy builds upon Ctrip's one-stop travel platform that features comprehensive products, industry leading service quality, and competitive prices," Chairman and CEO James Liang said in a statement.

Shanghai-based Ctrip.com reported net income of RMB 210.4 million or $34.3 million for the second quarter, up 76 percent from RMB 119.7 million in the prior-year quarter. Earnings per ADS surged to RMB 1.47 or $0.24 from RMB 0.81 last year.

Excluding share-based compensation charges, adjusted net income for the quarter was RMB 322 million or $52 million, up 41 percent from RMB 228 million in the prior-year quarter. Earnings per ADS were RMB 2.23 or $0.36, compared to RMB 1.56 or $0.24 a year ago.

Total revenues for the quarter increased 28 percent to RMB 1.32 billion or $215.1 million from RMB 1.03 billion in the same quarter last year.

Net revenues grew 28 percent to RMB 1.24 billion or $203 million from RMB 974 million in the prior-year quarter.

On average, analysts polled by Thomson Reuters expected the company to earn $0.17 per share for the quarter on revenues of $190.41 million. Analysts' estimates typically exclude special items.

Ctrip.com's hotel reservation revenues for the second quarter grew 25 percent to RMB 511 billion or $83 million, primarily driven by a 44 percent increase in hotel reservation volume, partly offset by a 14 percent decline in commission per room night amid promotional activities.

Air ticket booking revenues rose 29 percent to RMB 522 million or $85 million, reflecting a 34 percent increase in air ticketing sales volume, partially offset by 6 percent decrease of commission per air ticket.

Packaged-tour revenues surged 40 percent to RMB 187 million or $30 million, due to the increase of leisure travel volume. Corporate travel revenues grew 34 percent to RMB 66 million or $11 million, driven by the increased corporate travel demand from business activities.

"Transactions from Ctrip mobile channels tripled year-over-year in the second quarter and contributed to over 20% of hotel booking and approximately 15% of air ticket booking. We are excited to embrace the changes in the travel industry in China and will endeavor to create more value for our business partners and customers in an innovative fashion," Liang added.

Operating margins for the quarter contracted 100 percentage points to 16 percent, as gross margin remained flat.

Looking ahead to third quarter, Ctrip.com forecasts net revenue growth of about 20 to 25 percent from the prior year. Analysts expect the company to report revenues of $231.20 million.

CTRP closed Wednesday's regular trading session at $36.60, up $0.09 or 0.25% on a volume of 3.16 million shares. The stock soared a further $3.41 or $9.32% in after-hours trading.