Ctrip's original sphere of influence is being eroded

Abstract: This has been Ctrip 4 consecutive quarterly net profit has fallen, with the platform to go where, Taobao travel has risen, Ctrip is undoubtedly facing a lot of competition, and with The tonight's new business models such as hotel and the emerging commercial model of the growing, Ctrip original influence range

This has been Ctrip 4 consecutive quarterly net profit has fallen, with the platform of where to go, Taobao travel has risen, Ctrip is undoubtedly facing a lot of competitive pressure, and with the "Tonight Special hotel" and other emerging business models of the app gradually rise, Ctrip's original sphere of influence is suffering from eating up.

Ctrip's third quarter net profit reached 194 million yuan Year-on-year down 40%

November 8 News, Ctrip (Securities Code: CTRP) recently released earnings. Earnings showed that Ctrip's third-quarter revenue reached 1.17 billion (about 187 million U.S. dollars), an increase of 20% per cent, and a net profit of 194 million yuan (about 31 million USD), down 40% per cent.

This is already Ctrip 4 consecutive quarterly net profit has fallen, with the platform of where to go, Taobao travel has risen, Ctrip is undoubtedly facing a lot of competitive pressure, and with the "Tonight Special hotel" and other emerging business models of the app gradually rise, Ctrip's original sphere of influence is suffering from eating up.

However, in the third quarter Ctrip some consolation, although the net profit is still falling, but the chain has increased by more than 60%. Ctrip CEO Fan said: "This quarter we continue to strengthen cooperation with partners, upgrade mobile platform, and enhance the marketing efforts in the construction of a one-stop tourism platform to achieve a lot of results."

Ctrip Q3 revenue of 198 million U.S. dollars grew 20%

Ctrip's third-quarter operating income was 1.25 billion yuan (198 million U.S. dollars), an increase of 20% per cent. Total operating income rose 21.5% in the third quarter of 2012.

Ctrip Q3 Hotel Reservation revenue 73 million USD 11%

Ctrip third quarter hotel reservations operating income of 457 million yuan (73 million U.S. dollars), an increase of 11%, the growth is mainly from the hotel booking volume of 40% year-on-year growth, and by each night income 21% year-on-year decline in part offset. The year-on-year decline in income per night was mainly influenced by promotional activities. Hotel bookings operating income growth of 11%, mainly affected by seasonal factors.

Ctrip Q3 Ticket booking revenue of 76 million U.S. dollars year-on-year increase of 24%

Ctrip third-quarter air tickets booking business receipts for 478 million yuan (76 million U.S. dollars), an increase of 24%, the chain growth of 18%, mainly from the increase in ticket booking volume.

Ctrip Q3 Hotel Reservation and airline booking revenue accounted for both declines

Ctrip original main business for hotel booking revenue and ticket booking revenue, the third quarter hotel booking revenue accounted for 37%, ticket booking revenue accounted for 38%. Ctrip third-quarter tourism business revenue for 224 million yuan (36 million U.S. dollars), an increase of 31%, the growth is mainly from the growth of leisure tourism demand. Tourism business receipts rose by 67% in the quarter, mainly affected by seasonal factors.

Ctrip in the third quarter business operation income of 54 million yuan (9 million U.S. dollars), an increase of 25%, the growth mainly from business activities driven by the growth of travel demand. Business management revenue growth of 10%, mainly affected by seasonal factors.

Ctrip Q3 operating profit of 30 million U.S. dollars down 38%

Ctrip in the third quarter of the operating profit of 190 million yuan (30 million U.S. dollars), down 38% year-on-year, the chain up 13%. In the third quarter of 2012, the operating profit was 299 million yuan (48 million U.S. dollars), which fell 24%, and the chain rose by 8% per cent.

Ctrip's operating profit rate for the third quarter was 16%, compared with 31% in the same period in 2011, compared with 17% in the previous quarter. Excluding equity remuneration, the operating profit rate was 25%, down from 41% in the same period as in 2011 and 28% in the previous quarter.

Ctrip Q3 net profit of 31 million dollars year-on-year drop

Ctrip in the third quarter attributable to Ctrip shareholders net profit of 194 million yuan (31 million U.S. dollars), the year-on-year decline of 40%, the chain up 62%. If it does not pay the share price, the net profit of the Ctrip is 302 million yuan (48 million U.S. dollars), down 27% year-on-year, up 32% in the chain.

As at September 30, 2012, the balance of cash and short-term investments was 5.4 billion yuan (USD 859 million). Ctrip expects the fourth quarter of 2012 net operating income annual growth rate of about 15–20%. The forecast reflects the initial judgment made by Ctrip based on the current situation and the possibility of adjustment.