eLong revenue by product for Q3 2014 was 323.5 million yuan, an increase of 100% QoQ and 2% YoY according to its unaudited financial results.
Hotel room nights stayed in the third quarter increased 22% to 9.4 million room nights compared to 7.7 million in the prior year period. Hotel commission revenue for the third quarter increased 6% to RMB269.8 million (US$44.0 million), compared to RMB255.2 million (US$41.7 million) in the third quarter of 2013.
eLong’s net revenues for the third quarter increased 2% to RMB301.5 million (US$49.1 million), compared to RMB296.9 million (US$48.5 million) in the third quarter of 2013. Total revenues for the third quarter increased to RMB323.5 million (US$52.7 million).
eLong mobile bookings comprised 48% of eLong brand room nights, and cumulative downloads of eLong mobile apps reached the 100 million milestone, in the third quarter.
More than 20,000 properties have contracted to use the free, cloud-based, multi-device hotel property management systems, Yunzhanggui and Zhuzhe, produced by eLong investee companies, compared to over 10,000 in the second quarter.
Our mobile lodging transactions have now surpassed 100,000 per day on peak days during holiday periods; and our lodging network has grown to more than 155,000 properties in China and over 365,000 properties worldwide. Every day our mobile applications provide real savings to our customers with tens of thousands of discounted lodging products, including pre-paid, flash sale and last minute products,
said Guangfu Cui, Chief Executive Officer of eLong.
eLong’s total revenues by product for the third quarter of 2014 as compared to the same period in 2013 were as follows (in RMB million):
|
Q3 2014 |
% |
Q3 2013 |
% |
Y/Y |
||||||
|
Total |
Total |
Growth |
||||||||
|
Hotel reservations |
269.8 |
84% |
255.2 |
81% |
6% |
|||||
|
Air ticketing |
26.6 |
8% |
35.2 |
11% |
(24%) |
|||||
|
Other |
27.1 |
8% |
25.6 |
8% |
6% |
|||||
|
Total revenues |
323.5 |
100% |
316.0 |
100% |
2% |
Air ticketing commission revenue decreased 24% in the third quarter of 2014 compared to the prior year quarter, due to a 21% decrease in commission per segment and a 4% decrease in air segments. Decline in commission per segment was primarily due to the lowering by major Chinese airlines of the base air commission rate from 3% to 2% in July 2014. Air ticketing commission revenue decreased to 8% of total revenues from 11% in the prior year quarter.
eLong gross margin in the third quarter of 2014 was 70%, compared to 75% in the third quarter of 2013. Gross margin decline was primarily due to a decrease in hotel commission revenue per room night.
eLong operating expenses for the third quarter of 2014 as compared to the same period in 2013 were as follows (in RMB million):
|
Q3 2014 |
% of Net Revenue |
Q3 2013 |
% of Net Revenue |
Y/Y Growth |
||||||
|
Service development |
73.7 |
25% |
48.3 |
16% |
53% |
|||||
|
Sales and marketing |
178.9 |
59% |
211.7 |
72% |
(16%) |
|||||
|
General and administrative |
37.4 |
12% |
20.5 |
7% |
82% |
|||||
|
Amortization of intangible assets |
1.5 |
– |
0.9 |
– |
61% |
|||||
|
Total operating expenses |
291.5 |
96% |
281.4 |
95% |
4% |
Total operating expenses increased 4% for the third quarter of 2014 compared to the third quarter of 2013. Total operating expenses increased to 96% of net revenues in the third quarter of 2014 from 95% in the prior year quarter. Operating loss wasRMB79.5 million in the third quarter of 2014 compared to operating loss of RMB57.9 million in the prior year quarter.
Net loss for the third quarter of 2014 was RMB58.3 million, compared to net loss of RMB50.4 million during the prior year quarter.
eLong currently expects net revenues for the fourth quarter of 2014 to be within the range of a decline of 20% to an increase of 10% compared to the fourth quarter of 2013.
Read more: Guest Satisfaction Research of China Hotels