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Ctrip.com International Ltd.
3F Building 63
No 421 Hong Cao Road
Shanghai, 200233
China - Map
Phone: 86 21 3406 4880
Fax: 86 21 5426 1600
Web Site: http://www.ctrip.com
DETAILS
Index Membership: N/A
Sector: Services
Industry: Consumer Services
Full Time Employees: 5,500
BUSINESS SUMMARY
Ctrip.com International, Ltd. and its subsidiaries provide travel related services including hotel reservation, air-ticketing, packaged-tour services, as well as Internet advertising and other related services. It sells air tickets for Chinese airlines, including Air China, China Eastern Airlines, China Southern Airlines, and Shanghai Airlines, as well as international airlines operating flights originating from cities in China, such as United Airlines, Northwest Airlines, Air Canada, DragonAir, and Lufthansa. The company also offers independent leisure travelers bundled packaged-tour products, which include air-ticketing and hotel reservations; sells travel guidebooks, which provide information for independent travelers; VIP membership cards that allow cardholders to receive discounts from restaurants, clubs, and bars. The company markets its products and services through on-site promotions, cross-marketing, online marketing, and advertising. The company was founded in 1999 and is based in Shanghai, the People's Republic of China.
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Ctrip Reports Third Quarter 2007 Financial Results
Wednesday November 7, 6:00 pm ET
SHANGHAI, China, Nov. 7 /Xinhua-PRNewswire-FirstCall/ -- Ctrip.com International, Ltd. (Nasdaq: CTRP - News), a leading travel service provider for hotel accommodations, airline tickets and packaged tours in China, today announced its unaudited financial results for the quarter ended September 30, 2007.
Highlights for the third quarter of 2007
-- Net revenues were RMB323 million (US$43 million) in the third quarter
of 2007, up 55% year-on-year.
-- Gross margin was 80% in the third quarter of 2007, compared to 79% in
the same period in 2006.
-- Income from operations was RMB111 million (US$15 million) in the third
quarter of 2007. Excluding share-based compensation charges
(non-GAAP), income from operations was RMB134 million (US$18 million),
up 71% year-on-year.
-- Operating margin was 34% in the third quarter of 2007. Excluding
share-based compensation charges (non-GAAP), operating margin was 41%,
compared to 38% during the same period in 2006.
-- Net income was RMB110 million (US$15 million) in the third quarter of
2007. Excluding share-based compensation charges (non-GAAP), net
income was RMB133 million (US$18 million), up 68% year-on-year.
-- Diluted earnings per ADS were RMB1.60 (US$0.21). Excluding share-based
compensation charges (non-GAAP), diluted earnings per ADS were RMB1.94
(US$0.26).
-- Share-based compensation charges were RMB23 million (US$3 million),
accounting for 7% of the net revenues, or RMB0.33 (US$0.04) per ADS for
the third quarter of 2007.
Mr. Min Fan, Chief Executive Office of Ctrip, said: "We are very pleased with the strong results for the third quarter of 2007. Our team has executed our strategies effectively to expand into new geographic areas, to enhance customer service level and to strengthen our product lines. We are committed to bringing the best travel experience to our customers and increasing return to our shareholders."
Financial results for the third quarter of 2007
For the third quarter of 2007, Ctrip reported total revenues of RMB346 million (US$46 million), representing a 55% increase from the same period in 2006 and a 12% increase from the previous quarter.
Hotel reservation revenues totaled RMB176 million (US$23 million) for the third quarter of 2007, representing a 40% increase from the same period in 2006 and a 2% increase from the previous quarter primarily due to increased volume in hotel bookings.
The total number of hotel room nights booked was approximately 2.52 million in the third quarter of 2007, compared to approximately 1.82 million for the same period in 2006 and approximately 2.41 million room nights in the previous quarter.
Air ticket booking revenues for the third quarter of 2007 were RMB138 million (US$18 million), representing a 76% increase from the same period in 2006, and an 18% increase from the previous quarter, primarily due to strong growth of air tickets sales volume.
The total number of air tickets sold in the third quarter of 2007 was approximately 2.91 million, compared to approximately 1.72 million for the same period in 2006 and approximately 2.55 million in the previous quarter.
Packaged-tour revenues for the third quarter of 2007 were RMB21 million (US$3 million), up 61% from the both the same period in 2006 and the previous quarter, primarily due to the increased leisure travel volume in the third quarter.
For the third quarter of 2007, net revenues were RMB323 million (US$43 million), a 55% increase from the same period in 2006. Net revenues increased by 12% from the previous quarter.
The gross margin was 80% in the third quarter of 2007, compared to 79% for the same period in 2006 and 80% in the previous quarter.
Product development expenses for the third quarter of 2007 increased by 75% to RMB48 million (US$6 million) from the same period in 2006 and increased by 15% compared to the previous quarter, primarily due to the increase of product development personnel resources. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 13% of the net revenues, compared to 11% in the same period last year and 12% in the previous quarter.
Sales and marketing expenses for the third quarter of 2007 increased by 33% to RMB63 million (US$8 million) from the same period in 2006 and increased by 8% compared to the previous quarter, primarily due to the increase of sales and marketing personnel resources and advertisement expenses. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 19% of the net revenues, lower than the 22% in the same period last year and remained relatively consistent with the previous quarter.
General and administrative expenses for the third quarter of 2007 increased by 44% to RMB36 million (US$5 million) from the same period in 2006, primarily due to the recognition of RMB13 million (US$2 million) share-based compensation charges. General and administrative expenses for the third quarter of 2007 remained relatively consistent with the previous quarter, with an increase of 3%. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 7% of the net revenues, remained relatively consistent with 8% for the same period last year and 7% in the previous quarter.
Income from operations for the third quarter of 2007 was RMB111 million (US$15 million). Excluding share-based compensation charges (non-GAAP), income from operations was RMB134 million (US$18 million), increased by 71% from the same period in 2006, and 13% from the previous quarter.
Operating margin was 34% in the third quarter of 2007. Excluding share- based compensation charges (non-GAAP), operating margin was 41% compared to 38% in the same period in 2006 and 41% in the previous quarter.
Net income for the third quarter of 2007 was RMB110 million (US$15 million). Excluding share-based compensation charges (non-GAAP), net income was RMB133 million (US$18 million), representing a 68% increase from the same period in 2006 and a 19% increase from the previous quarter, mainly due to higher income from operations.
The diluted earnings per ADS were RMB1.60 (US$0.21) and the diluted earnings per ordinary share were RMB3.21 (US$0.43). Excluding share-based compensation charges (non-GAAP), the diluted earnings per ADS were RMB1.94 (US$0.26) for the third quarter of 2007.
As of September 30, 2007, Ctrip's cash balance increased to RMB1.2 billion (US$160 million), compared to RMB978 million as of June 30, 2007.
Business Outlook
For the fourth quarter of 2007, Ctrip expects to continue strong year-on- year net revenue growth of approximately 35%.
Note to Financial Information
Certain prior year amounts have been reclassified with no effect on net income or retained earnings to conform to the 2007 financial information presentation.
Conference Call
Ctrip's management team will host a conference call at 8:00PM Eastern Time on November 7, 2007 (or 9:00AM on November 8, 2007 in the Shanghai/HK time zone) following the announcement.
The conference call will be available on Webcast live and replay at: http://ir.ctrip.com . The call will be archived for 12 months at this website.
The dial-in details for the live conference call: U.S. Toll Free Number +1-888-679-8035, International dial-in number +1-617-213-4848; Passcode 94859248.
A telephone replay of the call will be available after the conclusion of the conference call through November 14, 2007. The dial-in details for the replay: U.S. Toll Free Number +1-888-286-8010, International dial-in number +1-617-801-6888; Passcode 51114998.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expect," "anticipate," "future," "intend," "plan," "believe" "estimate," and "confident" and similar statements. Among other things, quotations from management and Business Outlook section in this press release, as well as Ctrip's strategic and operational plans, contain forward-looking statements. Ctrip may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Ctrip's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, a slow-down of economic growth, declines or disruptions in the travel industry, volatility in the trading price of Ctrip's ADSs, Ctrip's reliance on the relationships with travel suppliers and strategic alliances, failure to further increase brand recognition to obtain new business partners and consumers, failure to compete against new and existing competitors, damage to infrastructure and technology, PRC laws and regulations governing internet content providers in China and other risks outlined in Ctrip's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. All information provided in this press release and in the attachments is as of November 7, 2007, and Ctrip does not undertake any obligation to update any forward- looking statement, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Ctrip's unaudited consolidated financial statements presented in accordance with the United States Generally Accepted Accounting Principles ("GAAP"), Ctrip uses non-GAAP financial information related to product development expenses, sales and marketing expenses, general and administrative expenses, income from operations, operating margin, net income, and diluted earnings per ADS and per share, each of which is adjusted from the most comparable GAAP result to exclude the share-based compensation charges recorded under Statement of Financial Accounting Standard 123R, "Share-Based Payment", for 2007 and 2006. Ctrip's management believes the non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provides the management better capability to plan and forecast future periods.
The non-GAAP information is not in accordance with GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for the GAAP results. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude share- based compensation charges that have been and will continue to be significant recurring expenses in our business for the foreseeable future.
Reconciliations of Ctrip's non-GAAP financial data to the most comparable GAAP data included in the consolidated statement of operations are included at the end of this press release.
About Ctrip.com International, Ltd.
Ctrip.com International, Ltd. is a leading travel service provider of hotel accommodations, airline tickets and packaged-tours in China. Ctrip aggregates information on hotels and flights and enables customers to make informed and cost-effective hotel and flight bookings. Ctrip also sell packaged-tours that include transportation and accommodations, as well as guided tours in some instances. Ctrip targets primarily business and leisure travelers in China who do not travel in groups. These travelers form a traditionally under-served yet fast-growing segment of the travel industry in China. Since its inception in 1999, Ctrip has experienced substantial growth and become one of the best-known travel brands in China.
-- Table to Follow -
Ctrip.com International, Ltd.
Consolidated Balance Sheet Information
December September September
31, 2006 30, 2007 30, 2007
RMB RMB USD
(unaudited) (unaudited) (unaudited)
ASSETS
Current assets:
Cash 844,392,604 1,188,937,011 158,677,265
Restricted cash 6,600,000 6,600,000 880,846
Short-term investment -- 13,000,000 1,734,999
Accounts receivable 136,688,354 219,513,282 29,296,562
Prepayments and other
current assets 62,870,154 106,808,185 14,254,776
Deferred tax assets 2,916,151 4,527,454 604,241
Total current assets 1,053,467,263 1,539,385,932 205,448,689
Long-term deposits 80,174,984 126,028,553 16,819,954
Land use rights 66,449,208 65,425,162 8,731,737
Property, equipment and
software 153,690,484 262,142,514 34,985,922
Investment 80,416,250 80,416,250 10,732,470
Goodwill 14,595,849 14,595,849 1,947,983
Other long-term assets 3,058,465 2,953,723 394,208
Total assets 1,451,852,503 2,090,947,983 279,060,963
LIABILITIES
Current liabilities:
Accounts payable 151,408,198 349,935,209 46,702,863
Salary and welfare payable 32,778,110 45,630,835 6,089,958
Taxes payable 34,913,392 40,827,771 5,448,934
Advances from customers 38,178,866 95,165,912 12,700,981
Accrued liability for
customer reward program 29,566,712 40,404,980 5,392,507
Dividend payable 72,169,155 -- --
Other payables and
accruals 62,030,840 99,001,489 13,212,883
Total current liabilities 421,045,273 670,966,196 89,548,126
Other long-term payables 2,437,500 1,625,000 216,875
Total liabilities 423,482,773 672,591,196 89,765,001
Minority interests 672,780 1,189,725 158,782
SHAREHOLDERS' EQUITY
Share capital 2,700,889 2,738,668 365,507
Additional paid-in capital 627,461,168 762,719,178 101,793,612
Statutory reserves 53,787,911 53,787,911 7,178,613
Cumulative translation
adjustments (16,099,263) (24,753,481) (3,303,636)
Retained Earnings 359,846,245 622,674,786 83,103,084
Total shareholders'
equity 1,027,696,950 1,417,167,062 189,137,180
Total liabilities and
shareholders' equity 1,451,852,503 2,090,947,983 279,060,963
Ctrip.com International, Ltd.
Consolidated Statement of Operations Information
Quarter Ended Quarter Ended Quarter Ended Quarter Ended
September 30, June 30, September 30, September 30,
2006 2007 2007 2007
RMB RMB RMB USD
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Hotel
reservation 125,143,244 171,428,902 175,578,714 23,432,991
Air-ticketing 78,312,011 116,940,167 137,659,009 18,372,172
Packaged tour 12,863,465 12,858,353 20,683,731 2,760,481
Others 6,253,938 7,950,457 11,909,481 1,589,456
Total revenues 222,572,658 309,177,879 345,830,935 46,155,100
Less: business
tax and
related
surcharges (14,417,209) (21,159,382) (23,160,551) (3,091,041)
Net revenues 208,155,449 288,018,497 322,670,384 43,064,059
Cost of
revenues (43,640,055) (57,223,269) (64,011,659) (8,543,089)
Gross profit 164,515,394 230,795,228 258,658,725 34,520,970
Operating
expenses:
Product
development* (27,349,052) (41,554,054) (47,941,336) (6,398,321)
Sales and
marketing* (47,701,000) (58,973,708) (63,466,452) (8,470,325)
General and
administrative* (25,271,889) (35,065,802) (36,269,362) (4,840,562)
Total operating
expenses (100,321,941) (135,593,564) (147,677,150) (19,709,208)
Income from
operations 64,193,453 95,201,664 110,981,575 14,811,762
Interest income 3,704,148 3,079,558 4,670,322 623,308
Other income 8,116,653 5,671,677 13,577,722 1,812,103
Income before
income tax
expense and
minority
interest 76,014,254 103,952,899 129,229,619 17,247,173
Income tax
expense (11,304,888) (15,737,675) (19,518,480) (2,604,965)
Minority
interests (12,890) 12,530 (32,723) (4,367)
Net income 64,696,476 88,227,754 109,678,416 14,637,841
Earnings per
ordinary share
- Basic 1.99 2.69 3.32 0.44
- Diluted 1.94 2.60 3.21 0.43
Earnings per
ADS
- Basic 1.00 1.35 1.66 0.22
- Diluted 0.97 1.30 1.60 0.21
Weighted
average
ordinary
shares
outstanding
- Basic 32,478,507 32,796,200 33,070,087 33,070,087
- Diluted 33,366,826 33,887,925 34,197,196 34,197,196
* Share-based
compensation
charges included
are as follows:
Product
development 3,657,057 5,909,391 5,918,151 789,845
Sales and
marketing 2,283,444 3,562,392 3,540,669 472,543
General and
administrative 8,265,930 13,626,650 13,396,356 1,787,897
Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
Quarter Ended September 30, 2007
GAAP Result % of Share-based % of Non-GAAP % of
Net Compensation Net Result Net
Revenue Revenue Revenue
Product
development (47,941,336) 15% 5,918,151 2% (42,023,185) 13%
Sales and
marketing (63,466,452) 20% 3,540,669 1% (59,925,783) 19%
General and
administrative (36,269,362) 11% 13,396,356 4% (22,873,006) 7%
Total
operating
expenses (147,677,150) 46% 22,855,176 7% (124,821,974) 39%
Income from
operations 110,981,575 34% 22,855,176 7% 133,836,751 41%
Net income 109,678,416 34% 22,855,176 7% 132,533,592 41%
Diluted
earnings per
ordinary share
(RMB) 3.21 -- 0.67 -- 3.88 --
Diluted
earnings per
ADS (RMB) 1.60 -- 0.33 -- 1.94 --
Diluted
earnings per
ADS (USD) 0.21 -- 0.04 -- 0.26 --
Quarter Ended June 30, 2007
GAAP Result % of Share-based % of Non-GAAP % of
Net Compensation Net Result Net
Revenue Revenue Revenue
Product
development (41,554,054) 14% 5,909,391 2% (35,644,663) 12%
Sales and
marketing (58,973,708) 20% 3,562,392 1% (55,411,316) 19%
General and
administrative (35,065,802) 12% 13,626,650 5% (21,439,152) 7%
Total
operating
expenses (135,593,564) 47% 23,098,433 8% (112,495,131) 39%
Income from
operations 95,201,664 33% 23,098,433 8% 118,300,097 41%
Net income 88,227,754 31% 23,098,433 8% 111,326,187 39%
Diluted
earnings per
ordinary share
(RMB) 2.60 -- 0.68 -- 3.29 --
Diluted
earnings per
ADS (RMB) 1.30 -- 0.34 -- 1.64 --
Diluted
earnings per
ADS (USD) 0.17 -- 0.04 -- 0.22 --
Quarter Ended September 30, 2006
GAAP Result % of Share-based % of Non-GAAP % of
Net Compensation Net Result Net
Revenue Revenue Revenue
Product
development (27,349,052) 13% 3,657,057 2% (23,691,995) 11%
Sales and
marketing (47,701,000) 23% 2,283,444 1% (45,417,556) 22%
General and
administrative (25,271,889) 12% 8,265,930 4% (17,005,959) 8%
Total
operating
expenses (100,321,941) 48% 14,206,431 7% (86,115,510) 41%
Income from
operations 64,193,453 31% 14,206,431 7% 78,399,884 38%
Net income 64,696,476 31% 14,206,431 7% 78,902,907 38%
Diluted
earnings per
ordinary share
(RMB) 1.94 -- 0.43 -- 2.36 --
Diluted
earnings per
ADS (RMB) 0.97 -- 0.21 -- 1.18 --
Diluted
earnings per
ADS (USD) 0.12 -- 0.03 -- 0.15 --
Notes for all the financial schedules presented:
Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the noon buying rate of USD1.00=RMB7.4928 on Septebmer 30, 2007 in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.
Note 2: Certain prior year amounts have been reclassified with no effect on net income or retained earnings to conform to the 2007 financial information presentation.
Note 3: Effective on July 31, 2007, Company changed ratio of the American Depositary Shares ("ADSs") to ordinary shares from one (1) ADS representing one (1) ordinary shares to two (2) ADS representing one (1) ordinary share. The change is reflected retroactively in the numbers for all the periods presented above.
For further information
Tracy Cui
Ctrip.com International, Ltd.
Tel: +86-21-3406-4880 X 12216
Email:
[email protected]
The company that's taking China by storm... and how you can too!
Founded in Shanghai in 1999, Ctrip (Nasdaq: CTRP) is China's No.1 online travel site and has become one of the best known travel brands in China. It's also the country's top consolidator of hotel reservations and airline tickets, having acquired the largest hotel reservation center in China in October 2000.
Since its IPO in December 2003, the stock has gained an astonishing 55% per year -- for a total market capitalization of $2.5 billion. In the first quarter of 2007, Ctrip reported total revenues of $30 million, a 49% increase from the same period in 2006.
Ctrip currently serves more than 2.9 million customers and accounts for around 5% of all airline bookings in China -- including roughly half the online travel market. That's twice the market share of its closest competitor, eLong (Nasdaq: LONG)
But as impressive as that sounds, when you stack those 2.9 million customers against a rapidly expanding middle class in a nation of more than 1.3 billion, you really see why the prospects for growth are mouthwatering.
Today, the leading U.S.-based travel and hotels service, Expedia, is valued at $8.9 billion. China's population is more than four times the size of the U.S., and Ctrip is valued at less than one-third the valuation of Expedia. More proof that the sky is the limit with Ctrip.
And while foreign competition will no doubt heat up, Ctrip's competitive advantages in a vast growth market gives it a huge head start.
You can see how Ctrip is reminiscent of the great growth stories of the past 20 years in America. Especially when you consider that China's stock market, at today's valuations, looks a lot like the U.S. market did back in 1982... prior to an 18-year mega bull market.
So now you can see why I'm are excited about recommending this stock to serious investors like you. And that's just the beginning...
This stock looks like a winner. I've been watching it for a long time but never took the plunge. China travel is hot, especially with Olympics coming up in 2008.
I expect it to run. What is the target? Who knows? ;)
Not showing it but I "believe" that it's oversold,
moving along sideways, should resume upward and onward.
52wk Range: 27.53 - 63.24
Volume: 234,667
Avg Vol (3m): 809,466
Market Cap: 3.55B
P/E (ttm): 80.19
EPS (ttm): 0.67
Div & Yield: 0.13 (0.20%)
Technicals
Last Price Quote is:
-4.05%below 13-day MA
-4.49%below 50-day MA
RS Rating: 87
Fundamentals
Key Data:
Market Cap (M): $3,714.86
P/E Ratio: 85.01
PEG Ratio: 2.44
Next Earnings: 02/07/2008
Last Analyst Rating: Outperform