Monday, China based online travel services provider eLong Inc.(LONG) posted a third quarter profit on an increase in operating income and lower foreign currency exchange losses.
eLong's net income for the third quarter was US$1.09 million or US$0.023 per share or US$0.044 per ADS.
Net income for the third quarter in Chinese currency was RMB 7.5 million, compared to net loss of RMB15.5 million in the prior year period, mainly on an increase of RMB 25.8 million in operating income and a decrease of RMB 4.7 million in foreign currency exchange losses. This was somewhat offset by a decrease of RMB 3.9 million in interest income and an increase of RMB3.5 million in income tax expense.
Net revenue for the quarter improved to US$14.24 million, while total revenue was US$15.1 million for the quarter. Total revenues improved 15% to RMB 103.2 million from RMB 90 million in the prior year quarter.
Gross margin in the third quarter declined to 70% from 71% in the prior year quarter, primarily due to the higher growth of lower margin air revenue relative to hotel revenue.
Quarterly income from operations improved to US$0.86 million as sales and marketing expenses declined, while gross profit increased. Operating income for the third quarter was RMB 5.9 million, compared to an operating loss of RMB 19.9 million in the prior year period.
Total operating expenses for the quarter was US$9.11 million and gross profit reported was US$9.98 million for the quarter.
Cash and cash equivalents and short-term investments as of September 30, 2009 were RMB 924.2 million or US$135.4 million.
For the nine months period, the company reported net income of US$2.77 million or US$0.056 per share or US$0.112 per ADS. Year-to- date revenue total revenue was US$39.93 million.
Looking forward, eLong said it expects net revenues for the fourth quarter to be within the range of RMB 90 million to RMB 99 million, equal to an increase of 5% to 15% compared to the fourth quarter of 2008.
LONG closed Monday's regular trading at US$16.49, up $0.04 or 0.24%, on the Nasdaq.
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