Earnings: Ctrip.com Q2 profit rises, tops Street view

0
0

Online travel company Ctrip.com International (NASDAQ: CTRP) reported stronger than expected earnings and revenues for the second quarter of 2019. However, the company’s stock lost about 5% during Monday’s after-hours trading session, immediately after the announcement.

On an adjusted basis, the China-based company reported a net profit of RMB 1.3 billion or RMB 2.25 per ADS ($193 million or $0.33 per ADS), up from RMB 1.1 billion recorded in the same period of 2018. The bottom-line also came in above the estimates.

Ctrip (CTRP) Q2 results beat Street view
(Image Courtesy: Jordan Sanchez/Unsplash)

On an unadjusted basis, it was a net loss attributable to shareholders of RMB 403 million ($59 million) in the second quarter, compared to net income attributable shareholders of RMB 2.4 billion last year. The deterioration reflects an RMB 1.3 billion loss from fair value changes in equity securities investments.

Ctrip reported net revenue of RMB 8.7 billion ($1.3 billion) for the quarter, representing a 19% increase from the same period last year. Analysts were looking for slower growth.

Accommodation reservation revenue climbed 21% annually during the quarter, while transportation ticketing revenue moved up 13%. There was a 25% growth in packaged-tour revenue and a 21% rise in corporate travel revenue during the quarter.

Also read: TripAdvisor’s stock tanks after Q1 revenue miss

Revenues of the international hotel business and air business more than doubled year-over-year during the three-month period, when the company expanded its presence in the lower-tier cities of China. Meanwhile, the Ctrip-branded low-star hotel room-nights rose more than 50%.

“We are encouraged by our results across our businesses and markets. Our team continued to push the product coverage in scope and depth, improve customer service quality, and expand our exposure in domestic and oversea markets. We are confident and excited about the long-term future for the travel industry in China and the world.” said CEO Jane Sun.

Related: Ctrip.Com Q1 2019 Earnings Conference Call Transcript

The gross merchandise value of offline stores witnessed yet another strong growth, with daily gross merchandise value reaching RMB 120 million during peak days. Looking ahead, the management expects total revenues to grow between 10% and 15% in the third quarter.

Shares of Ctrip declined by about 8% in the past 52-week period. The average rating by analysts on the stock is neutral. It dropped sharply during Monday’s extended trading, after closing the regular session higher.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips