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Ctrip 2009 Net Profit Up 48% YoY

Ctrip, 2/02/10

Chinese online travel services provider Ctrip (Nasdaq: CTRP) has recorded its unaudited financial results for Q4 2009, with net revenues reaching RMB 566 mln (USD 83 mln), up 43% year-on-year. 2009 full-year net revenues rose to RMB 2 bln (USD 291 mln) an increase of 34% over the 2008 figure. Excluding net revenues attributable to ezTravel, net revenues were RMB 1.9 bln (USD 281 mln) for the full year 2009, representing an increase of 29% from 2008.

Net income for the quarter came to RMB 190 mln (USD 28 mln) up 57% YoY. Net income for fiscal year 2009 increased 48% to RMB 659 mln (USD 97 mln).

Hotel reservation revenues amounted to RMB 279 mln (USD 41 mln) for Q4 2009, representing a 33% increase YoY and a 7% increase QoQ. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues were RMB 275 mln (USD 40 mln), representing a 31% increase year-on-year, primarily driven by the increase in hotel reservation volume. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues increased by 7% quarter-on-quarter, primarily driven by the increase in the commission per hotel room.

For the full year, hotel reservation revenues were RMB 956 mln (USD 140 mln), a 25% increase from 2008. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues were RMB 942 mln (USD 138 mln) for the full year 2009, representing a 23% increase from 2008. Hotel reservation revenues accounted for 45% of total revenues in 2008, compared to 48% in 2008.

Air ticket booking revenues for Q4 2009 were RMB 240 mln (USD 35 mln), up 45% YoY and stable compared to the previous quarter. Excluding revenues attributable to ezTravel, Ctrip's air-ticketing revenues were RMB 233 million (USD 34 mln) for Q4 2009, up 41% YoY, primarily driven by a 33% increase in air ticketing sales volume, and a 6% increase in commission per ticket YoY. Excluding revenues attributable to ezTravel, Ctrip's air-ticketing revenues remained consistent with those in the previous quarter.

For the full year, air ticket booking revenues were RMB 888 mln (USD 130 mln), a 35% increase from 2008. Excluding revenues attributable to ezTravel, Ctrip's air ticket booking revenues were RMB 866 mln (USD 127 mln), up 31% YoY. Air ticket booking revenues accounted for 42% of total revenues in 2009, remaining consistent with those in 2008.

Packaged-tour revenues for Q4 2009 were RMB 49 mln (USD 7 mln), up 62% YoY and down 11% QoQ. Excluding revenues attributable to ezTravel, Ctrip's packaged-tour revenues were RMB 41 mln (USD 6 mln), up 36% YoY due to the increase of leisure travel volume, and down 5% QoQ due to the decreased volume caused by seasonality.

For the full year, packaged tour revenues were RMB 177 mln (USD 26 mln), up 62% YoY. Excluding revenues attributable to ezTravel, Ctrip's packaged-tour revenues were RMB 149 mln (USD 22 mln), up 37% YoY. The packaged tour revenues accounted for 8% of the total revenues in 2009, compared to 7% in 2008.

In early February 2010, Ctrip's wholly owned subsidiary, C-Travel International Limited, entered into an agreement with Wing On Travel (Holdings) Limited, whereby C-Travel agrees to invest in and Wing On Travel agrees to sell to C-Travel 90% of the issued share capital of Wing On Travel's travel service segment (operated through Wing On Travel's subsidiary, HKWOT (BVI) Limited), for a total consideration of approximately USD 88 mln (or HKD 684 mln) in cash. The closing of the transaction is subject to certain conditions, including approval by shareholders of Wing On Travel.

For the first quarter of 2010, Ctrip expects year-on-year net revenue growth of approximately 30%.

To see Ctrip's full earnings report, please click here.

Keywords: C-Travel Wing On Travel M&A hotel Internet profit revenue Q4 2009 Ctrip ezTravel online travel CTRP online ticketing fiscal report

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