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eLong Q4 2010 Profit Up 334% YoY

eLong IR, 2/17/11

Chinese online travel service provider eLong (Nasdaq: LONG) has reported unaudited financial results for the fourth quarter and full year ended December 31, 2010. Net revenues for the quarter increased 23% YoY to RMB 124.1 mln (USD 18.8 mln), compared to RMB 100.9 mln (USD 14.8 mln) in Q4 2009.

Net income for Q4 2010 was RMB 4.2 mln, compared to net income of RMB 1.0 in Q4 2009, an increase of 333.8% YoY.

Revenue from hotel reservations for Q4 2010 rose 25% YoY to RMB 91.2 mln. Revenue from air ticketing was RMB 30.1 mln, up 8% YoY. Revenue from other businesses was RMB 10.5 mln, up 62% YoY.

Hotel commission revenue increased 25% for Q4 2010 compared to Q4 2009, primarily due to higher volume, partially offset by lower commission per room night. Commission per room night decreased 10% year-on-year, primarily due to eLong's eCoupon program and the higher growth of lower average daily rate budget hotels. Room nights booked through eLong in Q4 2010 increased 39% year-on-year to RMB 1.7 mln.

Air ticketing commission revenue increased 8% for Q4 2010 compared to Q4 2009, driven by a 12% increase in commission per segment, partially offset by a 3% decrease in air segments to 568,000. Commission per segment increased due to a 16% increase in average ticket price, which was partially offset by a decrease in air commission rates compared to the same quarter of the prior year.

Other revenue, primarily derived from website advertising, travel insurance and packages, increased 62% year-on-year for the fourth quarter of 2010, mainly driven by an increase of website advertising revenue. Other revenue grew to 8% of total revenues from 6% in the prior year quarter.

For the full year, net revenues increased 35% YoY to RMB 481.9 mln. Net income for full year 2010 was RMB 20.6 mln, compared to net income of RMB 19.9 mln in 2009, an increase of 3.65% YoY

Revenue from hotel reservations for the full year 2010 rose 35% YoY to RMB 346.4 mln. Revenue from air ticketing was RMB 123.1 mln, up 28% YoY. Revenue from other businesses was RMB 42.5 mln, up 59% YoY.

Hotel commission revenue increased 35% for the full year 2010 compared to 2009, primarily due to higher volume, partially offset by lower commission per room night. Commission per room night decreased 9% year-on-year, primarily due to eLong's eCoupon program and the higher growth of lower average daily rate budget hotels. Room nights booked through eLong in 2010 increased 49% year-on-year to 6.4 mln.

Air ticketing commission revenue for full year 2010 increased 28% compared to 2009, driven by an 11% increase in air segments to 2.4 mln and a 16% increase in commission per segment. Commission per segment increased due to a 17% increase in average ticket price, which was partially offset by a decrease in air commission rates compared to the prior year.

Other revenue for full year 2010 increased 59% compared to 2009, primarily due to increased website advertising and travel insurance revenues. Other revenue grew to 8% of total revenues from 7% in the prior year.

eLong currently expects net revenues for the first quarter of 2011 to be within the range of RMB 111 mln to RMB 121 mln, equal to an increase of 10% to 20% compared to the first quarter of 2010.

To view eLong's full earnings report, please click here.

Keywords: guidance hotel Internet profit revenue eLong online travel LONG Q4 2010 online ticketing fiscal report

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