China-based travel service provider Ctrip.com International Ltd. (CTRP) on Tuesday reported a 57% surge in profit for the fourth quarter from last year, buoyed by a 43% increase in revenues. Looking ahead to the first quarter, the company forecast revenue growth below analysts' estimates.
Ctrip also said it agreed to acquire a 90% stake in the travel services business of Hong Kong-based Wing On Travel Holdings Ltd. for US$88 million. Win On Travel provides tour packages, airline tickets, hotel reservations and other travel services.
For the fourth quarter, the company's net income attributable to shareholders was RMB190.2 million or US$28 million, up 57% from RMB121.4 million in the same period last year. Earnings per ordinary share rose to RMB5.28 or US$0.77 from RMB3.57 for the year-ago period. Earnings per ADS for the quarter was RMB1.32 or US$0.19, up from RMB0.89 or US$0.13 in the year-ago quarter.
Excluding share-based compensation charges, non-GAAP net income attributable to Ctrip's shareholders was RMB240 million or US$35 million, representing a 56% increase from RMB153.94 million in the same period last year.
Excluding share-based compensation charges, earnings per ADS for the latest quarter were RMB1.66 or US$0.24, up from RMB1.13 or US$0.17 in the same period last year. On average, four analysts polled by Thomson Reuters expected the company to report earnings of US$0.20 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenues for the quarter were RMB566 million or US$83 million, up 43% year-over-year from RMB396.3 million. The company had projected year-on-year net revenue growth rate for the quarter of about 25%-30%.
Excluding net revenues attributable to Taiwan's largest travel website, ezTravel which the company acquired, net revenues rose 38% to RMB546 million or US$80 million. Analysts had a consensus revenue estimate for the quarter of US$80.83 million.
Gross margin for the quarter remained consistent compared with year-ago period at 77%, the company said.
For the quarter, total operating expenses rose to RMB248.24 million from RMB186.84 million in the same period last year. Product development expenses surged 37% from a year ago to RMB88 million, while sales and marketing expenses increased 20% from last year to RMB98 million.
On segment basis, the company's largest segment by revenues, hotel reservation segment revenues rose 33% year-over-year to RMB279 million or US$41 million.
Ctrip's Air-ticketing booking revenues surged 45% from the prior-year quarter to RMB240 million or US$35 million. Packaged tour, the company's smallest segment, reported revenues for the quarter of RMB49 million or US$7 million, up 62% from the year-ago period due to an increase in leisure travel volume.
For fiscal year 2009, net income attributable to shareholders was RMB659 million or US$97 million, up 48% from RMB444.11 million last year. Earnings per ordinary share rose to RMB18.69 or US$2.74 from RMB12.90 a year ago. Earnings per ADS for the year was RMB4.67 or US$0.68, up from RMB3.23 or US$0.47 a year ago.
Excluding share-based compensation charges, non-GAAP net income for the year attributable to Ctrip's shareholders was RMB790 million or US$116 million, representing a 38% increase from RMB572.63 million last year.
Excluding share-based compensation charges, earnings per ADS were RMB5.60 or US$0.82, up from RMB4.16 or US$0.61 in the previous year. Analysts expected the company to report earnings of US$0.69 per share for the year.
Net revenues for the year were RMB2.0 billion or US$291 million, up 34% year-over-year from RMB1.48 billion a year ago. Excluding net revenues attributable to ezTravel, net revenues rose 29% to RMB1.9 billion or US$281 million. Analysts had a consensus revenue estimate for the year of US$291.81 million.
For the first quarter of 2010, the company expects to continue the year-on-year net revenue growth at a rate of about 30%. Analysts expect revenues of $81.30 million for the quarter, representing an increase of 38.7% from the year-ago period. Ctrip said that in early February 2010, its wholly-owned subsidiary C-Travel International Limited entered into an agreement to buy 90% of the issued share capital of the travel service segment of Hong Kong-based Wing On Travel Holdings Limited for a total consideration of about US$88 million or HK$684 million in cash.
The closing of the transaction is subject to certain conditions, including approval by shareholders of Wing On Travel. Ctrip noted that the investment will enable it to significantly increase its presence in Hong Kong, in addition to Mainland China and Taiwan.
CTRP closed Tuesday's regular trading session on the Nasdaq at US$33.23, up US$0.76 or 2.34% on a volume of 3.33 million shares.
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