Ctrip Travel net third-quarter unaudited financial Results

Ctrip (NASDAQ:CTRP) today announced its unaudited financial results for the third quarter ended September 30, 2013. The report showed that Ctrip's net revenue for the third quarter was 1.5 billion yuan (about 252 million U.S. dollars), an increase of 31% per cent, and the net profit attributable to the company's shareholders was 373 million yuan (about 61 million U.S. dollars), an increase of 92% per cent year-on-year.

After the release of the earnings, Ctrip chairman and CEO Liang Jianzhang, President Fan, COO Sun and CFO Wu Wenjie and other corporate management held a conference call to interpret the financial results and answer the analyst questions.

The following analysis is the main part of the question and answer session:

Macquarie analyst Shao (Jiong Shao): Where to go on the market, how the company began to go with the cooperation and competition? What are the competitive advantages of the company in terms of platform services? Second, the company's outbound travel business growth is strong, but also with the Booking.com and other foreign online travel service providers in the hotel reservations, do you have ctrip to establish their own overseas hotel network plan?

Liang Jianzhang: Where the service pattern is different from ours, its hotel inventory depends entirely on the partners to provide, Ctrip mainly and where to go in this cooperation; in the booking business, we are competitive relations, Ctrip in the booking business to provide a stable level of service, which by our technical platform and service platform to ensure that, In recent years the company's service quality has been greatly improved, in addition, the company's technology and services to continue to invest in order to achieve our services and competitors differentiated.

Sun: About Outbound tours, Ctrip's income level is higher, so the company's outbound business and become an important engine of growth; in the foreseeable future, the company will still strengthen the cooperation with the local service providers of the popular tourist destinations.

Credit Suisse analyst Dick Wei: Before the company said that the national day period air tickets booking volume of 70% growth, management can predict the four-quarter of the hotel booking volume, ticket booking volume, as well as pricing trends?

Wu Wenjie: It is estimated that the company's four-quarter hotel bookings can be increased by 30%-35%, the price will fall 0%-5%, while the company's commission rate and the three quarter flat, electronic coupons will increase the impact of 5%, hotel booking business total revenue will increase by 20%-25% , the company is expected to four quarters of the annual increase in air ticket bookings of 20%-25%, the price is stable, the impact of electronic coupons is very small, so the total revenue ticket bookings will increase year-on-year growth of 20%-25%; Tourism revenue is expected to increase 25%-30%, China's growth is higher than this average level The growth of business travel has much to do with airline ticket business, which is expected to grow by 20%-25%. Overall, the company is likely to achieve revenue percent growth in the four quarter.

Sun: Regarding the national day period seven times times growth, we refer to is not the ticket reservation quantity, but the scenic spot ticket booking quantity, this part of the business we just started to do, although the growth momentum is good, the business volume is not very big.

Credit Suisse analyst Dick Wei: Can the company introduce the mobile end of the business, such as the mobile end of the reservation, the user frequency and average transaction price, as well as the PC side of the comparison. In addition, can you tell me about the mobile side booking tickets and local service business?

Liang Jianzhang: On average, 30% of hotel bookings and 15% of airfare bookings are from the mobile side, and attractions tickets and local service bookings are higher from the mobile side, mainly because of their convenience. So generally the mobile end of the transaction with the tourist destination, the more clear the destination, the higher the proportion of the use of mobile-side bookings, from the mobile end of the ticket booking ratio is the lowest of all services.

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