Travel service provider Ctrip.com International Ltd. (CTRP), reported Wednesday a surge in profit for the third quarter ended September 30, reflecting a rise in revenues helped by increase in volumes. Looking ahead, the company also issued its revenue outlook for the fourth quarter. Ctrip shares surged by more than 12% following the news in after hour trading.
The Shanghai, China-based company's third quarter net income attributable to Ctrip's shareholders was RMB 188.52 million or US$27.62 million, up 80% from RMB 104.50 million in the same period last year. Earnings per ordinary share rose to RMB 5.30 or US$0.78 from RMB 3.03 for the year-ago period. Earnings per ADS for the quarter was RMB 2.65 or US$0.39, up from RMB 1.52 in the year ago quarter.
Excluding share-based compensation charges, non-GAAP net income attributable to Ctrip's shareholders was RMB 215.48 million or US$32 million, representing a 59% increase from RMB 135.78 million for the same period last year. Excluding share-based compensation charges, diluted earnings per ADS were RMB 3.03 or US$0.44.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of US$0.32 per share for the quarter. Analysts' estimates typically exclude special items.
Total quarterly revenues was RMB 583.40 million or US$85.46 million, up 47% year-over-year from RMB 397.05 million. Excluding net revenues attributable to Taiwan's largest travel website, ezTravel which the company had acquired, net revenues rose by 40% year-over-year to RMB 518 million or US$76 million.
Analysts expected revenues of US$72.23 million for the third quarter.
Gross margin remained consistent compared with year-ago period at 77%, the company said.
In the sequentially preceding second quarter, the company had reported net income of RMB 4.54 per share or US$0.67 per share, compared to RMB 3.44 per share for year ago second quarter. Earnings on a per ADS basis was RMB 2.27 or US$0.33, compared to RMB 1.72 per share in the prior year quarter. Excluding share-based compensation charges, earnings per ADS was RMB 2.66 or US$0.39 for the quarter.
Total revenue for the second quarter was $507.7 million or US$74.3 million, up from RMB 401.9 million for the second quarter last year.
For the quarter under review, total operating expenses rose to RMB 221.88 million from RMB 177.10 million for the year earlier period. Product development expenses increased to RMB 80.76 million from RMB 61.25 million in the year-ago period. Sales and marketing expenses were RMB 93.93 million, compared to RMB 71.03 million a year-ago.
On segment basis, the company's largest segment by revenues, hotel reservation segment revenues rose by 41% year-over-year to RMB 262.28 million or US$38.42 million from RMB 186.00 million last year, helped by a 47% increase in hotel reservation volume which had more than offset the decrease in commission per room.
Ctrip's Air-ticketing segment revenues increased by to RMB 241.14 million or US $35.33 million from RMB 166.42 million a year-ago, helped by revenues from ezTravel as well as an increase in air-ticketing sales volume.
Packaged tour, the company's smallest segment, revenues surged to RMB 54.73 million or US $8.02 million from RMB 28.37 million in the year earlier period mainly due to an increase in leisure travel volume.
Amongst others in the industry, Expedia, Inc. (EXPE) on October 29 reported a 23% year-over-year rise in profit for the third quarter to US$117.01 million or US$0.40 per share from US$94.82 million or US$0.33 per share in the prior-year quarter. Excluding special items, Expedia's adjusted net income for the quarter rose to US$144.90 million or US$0.48 per share from US$118.35 million or US$0.39 per share in the year-ago quarter.
Bellevue, Washington-based Expedia's revenues for the third quarter increased 2.3% to US$852.43 million from $US833.34 million in the same quarter last year.
For the fourth quarter of 2009, Ctrip expects a year-on-year net revenue growth rate of approximately 25-30%. This forecast reflects Ctrip's current and preliminary view, which is subject to change.
Ctrip shares, which have traded in a broad range of $16.41 to $66.83 over the past year, closed Wednesday's regular trading session at $64.29, down $0.91. In after hours, the share traded at $72.50, up $8.21 or 12.77%.
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