Ctrip Mobile App Downloads Reached 350M in Q3 2014

For the third quarter of 2014, Ctrip reported total revenues of RMB2.3 billion (US$368 million), representing a 38% increase from the same period in 2013. Total revenues for the third quarter of 2014 increased by 24% from the previous quarter.

Ctrip accommodation reservation and transportation ticketing services maintained robust growth, reaching 69% and 98% year-over-year in volume respectively. The number of Ctrip mobile app downloads reached 350 million, growing 75% from the previous quarter.

Through the open-platform, Ctrip work with around 1,000 hotel agency partners, China’s top 600 air ticketing agencies, and over 800 local travel agencies. Total hotel transactions through the open-platform reached approximately RMB1 billion during the third quarter.

Accommodation reservation revenues amounted to RMB950 million (US$155 million) for the third quarter of 2014, representing a 56% increase year-on-year, primarily driven by an increase of 69% in accommodation reservation volume, partially offset by the decrease of commission per room night. Accommodation reservation revenues increased by 26% quarter-on-quarter.

Transportation ticketing revenues for the third quarter of 2014 were RMB800 million (US$130 million), representing a 32% increase year-on-year, driven by an increase of 98% in ticketing volume. Transportation ticketing revenues increased by 10% quarter-on-quarter.

Packaged-tour revenues for the third quarter of 2014 were RMB358 million (US$58 million), representing a 12% increase year-on-year, driven by an increase of 52% in volume of organized tours and self-guided tours. Packaged-tour revenues increased by 74% quarter-on-quarter, primarily due to seasonality.

Corporate travel revenues for the third quarter of 2014 were RMB104 million (US$17 million), representing a 45% increase year-on-year, primarily driven by the increased corporate travel demand from business activities. Corporate travel revenues increased by 15% quarter-on-quarter, primarily due to seasonality.

For the third quarter of 2014, Ctrip net revenues were RMB2.1 billion (US$347 million), representing a 38% increase from the same period in 2013. Net revenues for the third quarter of 2014 increased by 24% from the previous quarter.

Gross margin was 72% for the third quarter of 2014, compared to 75% in the same period in 2013 and remained consistent with that in the previous quarter.

For the fourth quarter of 2014, the Company expects to continue the net revenue growth year-on-year at a rate of approximately 30%.

Ctrip Income Statement


	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended
	September 30, 2013	June 30, 2014	September 30, 2014	September 30, 2014
	RMB	RMB	RMB	USD


	*(unaudited)*	*(unaudited)*	*(unaudited)*	*(unaudited)*
Revenues:
Accommodation reservation **	610,653,418	752,565,453	950,299,334	154,822,309
Transportation ticketing ***	604,272,344	725,513,462	799,796,927	130,302,530
Packaged tour	319,566,156	205,141,896	357,643,161	58,267,051
Corporate travel	71,852,907	90,442,575	103,858,502	16,920,577
Others	34,141,394	45,842,408	47,873,735	7,799,566

Total revenues	1,640,486,219	1,819,505,794	2,259,471,659	368,112,033

Less: business tax and related surcharges	(99,510,607)	(97,244,864)	(129,901,116)	(21,163,427)

Net revenues	1,540,975,612	1,722,260,930	2,129,570,543	346,948,606

Cost of revenues	(379,121,709)	(478,601,393)	(588,980,230)	(95,956,375)

Gross profit	1,161,853,903	1,243,659,537	1,540,590,313	250,992,231

Operating expenses:
Product development *	(335,461,829)	(479,262,194)	(612,245,503)	(99,746,742)
Sales and marketing *	(354,501,850)	(479,274,011)	(598,185,788)	(97,456,140)
General and administrative *	(172,348,825)	(194,203,673)	(241,916,476)	(39,412,916)

Total operating expenses	(862,312,504)	(1,152,739,878)	(1,452,347,767)	(236,615,798)

Income from operations	299,541,399	90,919,659	88,242,546	14,376,433

Interest income ****	56,207,564	83,277,622	71,980,305	11,726,997
Interest expense ****	(3,595,298)	(33,693,033)	(45,175,681)	(7,360,000)
Other income	67,808,945	5,265,556	107,538,979	17,520,199

Income before income tax expense and equity in income	419,962,610	145,769,804	222,586,149	36,263,629

Income tax expense	(92,166,420)	(47,090,068)	(50,423,327)	(8,214,944)
Equity in income of affiliates	24,740,697	13,215,687	16,323,840	2,659,472

Net income	352,536,887	111,895,423	188,486,662	30,708,157

Less: Net loss attributable to noncontrolling interests	20,450,829	22,992,757	28,437,892	4,633,088

Net income attributable to Ctrip’s shareholders	372,987,716	134,888,180	216,924,554	35,341,245

Comprehensive income attributable to Ctrip’s shareholders	443,127,464	260,740,944	555,939,645	90,573,419

Earnings per ordinary share
– Basic	11.34	3.97	6.35	1.03
– Diluted	9.74	3.51	5.51	0.90

Earnings per ADS
– Basic	2.84	0.99	1.59	0.26
– Diluted	2.44	0.88	1.38	0.22

Weighted average ordinary shares outstanding
– Basic	32,887,276	33,952,472	34,166,995	34,166,995
– Diluted	38,745,348	39,339,689	39,905,707	39,905,707

* Share-based compensation charges included are as follows:
Product development	34,621,728	41,555,508	48,049,514	7,828,204
Sales and marketing	11,917,951	11,715,564	14,630,609	2,383,612
General and administrative	62,359,499	58,066,756	74,373,595	12,116,910