Ctrip profits surge in Q2
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Ctrip has reported a strong rise in profits in the second quarter of the year.
The Chinese travel company generated net profits of CNY210 million (US$34m) in the three months to 30 June 2013, up 76% compared to the same period last year. Total revenues jumped 28% to CNY1.3 billion.
And James Liang, chairman & CEO of Ctrip, said the trend towards mobile bookings boosted the company during the quarter.
“We are pleased to report strong results in the second quarter of 2013,” said Liang. “Transactions from Ctrip mobile channels tripled year-over-year in the second quarter. We are excited to embrace the changes in the travel industry in China and will endeavour to create more value for our business partners and customers in an innovative fashion.”
Ctrip’s ticketing (CNY522m) and hotel reservation (CNY511m) revenues accounted for the largest proportions of total revenue during the quarter, followed by package tours (CNY187m) and corporate travel (CNY66m).
Expenses continued to rise however, including product development (+49% to CNY310m), sales and marketing (+25% to CNY271m) and administrative (+14% to CNY159m) costs.
Ctrip said it now expects to achieve a 20-25% rise in net revenue in the third quarter of 2013.
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