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Inside & Out: Ctrip 2010 First Quarter

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percent_2 May 19, 2010 (Jiayu Tian) Ctrip.com (NASDAQ:CTRP), the largest Chinese online travel agency, reported first quarter financials last Tuesday. Ctrip’s quarterly net revenue reached $86 millions to a new record, representing a 46% increase YoY. Net income attributable to shareholders rose to $28 million, an increase of 57% YoY. Smooth operation, effective cost control and well integrated acquisitions are behind the stellar growth. This is in sharp contrast to eLong Inc. (NASDAQ:LONG), a Chinese competitor, whose shares are controlled by Expedia Inc. (NASDAQ:EXPE).

For a full analysis with more commentary - this one is bare charts with some explanations - read Warm up for Ctrip.com first quarter earnings.

 Quarter revenue reached highest, revenue of next quarter is expected to maintain steable growth

CTRP_2010Q1_TJ_1

Ctrip’s revenues and its growth rates from 2006 to 2010

(Revenue is in millions of US dollars, Source: Ctrip, 2010)

It is shown in the above graph that in the first quarter of 2010, Ctip’s net revenue grew kept growth in a similar rate as the fourth quarter of 2009. Its year on year growth rate was higher than the last quarter.

 Hotel reservation keep stable increase

CTRP_2010Q1_TJ_2

Ctrip’s hotel reservation revenue

(In millions of US dollars, source: Ctrip, 2010)

It is shown that the revenue from hotel reservation in Q1 2010 increased compared with the revenue of Q1 2009, however, it decreased from last quarter. One possible explanation may be that during spring festival, customers decreased, but is still can be conclude as that fewer consumers choose Ctrip.com Inc. (NASDAQ:CTRP) to book accommodation.

 Air Ticketing

CTRP_2010Q1_TJ_3

Ctrip’s air ticketing revenue

(In million of US dollars, Source: Ctrip, 2010)

The above graph shows that the revenue from air ticketing in Q1 2010 increased, however, in a lower rate compared last quarter.

 Packaged-tour was the one increased most rapidly among all of the three

CTRP_2010Q1_TJ_4

Ctrip’s packaged-tour revenue

(In million of US dollars, Source: Ctrip, 2010)

Due to Spring Festival, the revenue of packaged-tour in the first quarter of 2010 increased substantially from last quarter, at a faster speed.

 Corporate travel decreased due to Spring Festival

CTRP_2010Q1_TJ_5

Ctrip’s corporate travel revenue

(In million of US dollars, Source: Ctrip, 2010)

Due to Spring Festival, the corporate travel revenue decreased, but still keeps considerable revenue.

CTRP_2010Q1_TJ_6

Ctrip’s quarterly revenues from in Q1 2009, Q4 2009 and Q1 2010

(In million of Us dollars, the percentage rate is compound annual growth rate. Source: Ctrip, 2010)

CTRP_2010Q1_TJ_7

Ctrip’s revenue structure

(Source: Ctrip, 2010)

CTRP_2010Q1_TJ_8

From above graph, it is shown that in Q1 10, packaged-tour cannibalized hotel reservation. Hotel reservation decreased from either Q3 09 or Q109.

 Gross profit increased following revenue’s growth, and the gross profit ratio increased too.

CTRP_2010Q1_TJ_9

The relationship between Revenue and Gross Profit

(In millions of US dollars, Source: Ctrip, 2010)

The gross profit grew following the growth of revenue in the first quarter of 2010. The gross profit ratio also increased.

 Total operation expense increased in 2009 but the operation cost ratio decreased a lot during the same period.

CTRP_2010Q1_TJ_10

Operation expense and its ratio in 2009

(In million of US dollars, Source: Ctrip, 2010)

Total operation expenses increase in this quarter but the operation cost ratio decreased slicely.

 Net income increased and the net income ratio decreased.

CTRP_2010Q1_TJ_11

Net Income and its ratio over revenue

(In million of US dollars, Source: Ctrip, 2010)

Cash Flow

 Cash from financing activities

CTRP_2010Q1_TJ_12

Ctrip.com (NASDAQ:CTRP) acquired the following companies to spur growth.



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