Ctrip.Com International, Ltd. (CTRP) (“Ctrip” or the “Company”), a major provider of online travel and associated services, including lodging reservation, transportation ticketing, packaged tours and in-destination offerings, corporate journey control, and other tour-related offerings, recently introduced its unaudited monetary results for the first zone ended March 31, 2019.
Key Highlights for the First Quarter of 2019
Ctrip mentioned sturdy monetary outcomes for the primary quarter of 2019.
– Net sales accelerated by 21% year-over-year to RMB8.2 billion (US$1.2 billion) in the first sector in 2019.
– Income from operations elevated by 50% or-over-12 months to RMB885 million (US$132 million). Excluding proportion-based total reimbursement fees, non-GAAP earnings from operations increased by forty-two % 12 months-over-year to RMB1.4 billion (US$204 million) in the first region of 2019.
Ctrip’s international organizations sustained a robust increase in momentum.
– Skyscanner’s direct booking program persevered with its strong momentum, finishing about a 250% increase in bookings yr-over-12 months within the first quarter of 2019.
– The increase rate of the global hotel enterprise and global air business (aside from the Skyscanner business) within the first sector in 2019 was greater than double that of the China outbound site visitors boom within the same period.
– In the primary area of 2019, sales generated from global enterprise accounted for about 35% of overall revenue.
Ctrip extended its presence in decrease-tier towns in China.
– Ctrip branded low-big name motel room nights extended about 60% year-over-12 months within the first sector of 2019.
– The offline stores’ gross merchandise price, or GMV, experienced a triple-digit year-over-year boom within the first region of 2019.
“Ctrip delivered solid effects within the first sector of 2019. We see both healthy sales increase and non-GAAP working margin expansion,” stated Jane Sun, Chief Executive Officer. “Not only do we listen to our customers, but we also lead the marketplace as new opportunities emerge. We prudently align our strategy to the health of the market. The super results reflect our dedication to creating a high-quality tour experience globally through Ctrip’s one-forestall journey platform.”
“We are thrilled that our first region effects meditated our religion inside the outlook of the tour industry in China as well as our very own ability to execute and include the adjustments in this enterprise,” said James Liang, Executive Chairman. “We usually empower our increase organically and create lengthy-term value for stakeholders, focusing on increasing the consumer base and deepening personal engagement. We additionally have accomplished an incredible record of worldwide strategic investments and collaborations. We are excited about our recent MakeMyTrip investment and look ahead to reaching more achievements and developing extra prices for our shareholders within our destiny.”
First Quarter of 2019 Financial Results and Business Updates
For the primary zone of 2019, Ctrip reported net sales of RMB8.2 billion (US$1.2 billion), representing a 21% increase from the identical period in 2018. Net revenue for the primary region of 2019 accelerated by eight percent from the preceding quarter, often due to seasonality.
Accommodation reservation sales for the first region of 2019 increased to RMB3.0 billion (US$450 million), representing a 21% growth from the same period in 2018. This growth is ordinarily driven by growth in accommodation reservation volume. Accommodation reservation revenue for the first quarter of 2019 improved by 14% from the previous zone because of seasonality.
Transportation ticketing revenue for the primary sector of 2019 was RMB3. Four billion (US$500 million), representing a sixteen% increase from the identical period in 2018, generally driven by a boom in ticketing extent. Transportation ticketing revenue for the first quarter of 2019 was reduced by 2% from the previous region.
Packaged-excursion sales for the primary zone of 2019 were RMB1. Zero billion (US$156 million), representing a 25% boom from the same period in 2018. This was broadly driven by a boom in the volume of organized tours and custom-designed tours. Packaged-excursion sales for the first region of 2019 multiplied by 45% from the preceding region, basically because of seasonality.
Corporate tour revenue for the first region of 2019 became RMB238 million (US$35 million), representing a 32% growth from the same duration in 2018, broadly speaking, pushed through growth in tour product insurance. Corporate journey sales for the first zone in 2019 were reduced by 15% from the preceding zone, commonly due to seasonality.
The gross margin was 79% for the primary region in 2019, compared to 82% in the identical length in 2018, and remained constant for the preceding zone.
Product improvement charges for the first quarter of 2019 increased by 18% to RMB2. Five billion (US$379 million) from the equal duration in 2018, commonly because of increased product improvement personnel associated costs. Product development fees were reduced by 6% from the previous quarter, typically due to decreased product improvement personnel-related charges. Product improvement costs for the primary zone in 2019 accounted for 31% of the net sales for the identical length. Excluding proportion-based total reimbursement fees, non-GAAP product development fees for the primary quarter of 2019 accounted for 28% of the internet sales for the same size, which decreased from 29% for the equal period of 2018 and 33% preceding the sector.
