Ctrip’s “solid” first quarter sends share price higher
Chinese online travel giant Ctrip reported “solid results” for the year’s first quarter according to its CEO, Jane Jie Sun. She elaborated on an earnings call: “in particular, accommodation revenue grew a healthy 23% year over year despite our large base as our hotel business maintained balance growth between revenue and volume.” And, while growth overall continued to slow, the consensus amongst analysts is that the company still has significant momentum. Investors agree, and Ctrip’s share price surged after reporting earnings last week.
Ctrip’s share price increased by more than 8% last week alone!
SOURCE: Yahoo Finance
Net revenue during the quarter came in at $1.1 billion – an 11% rise from the year-ago quarter, and that’s despite currency headwinds. This is a big drop in the company’s previous growth rate, but it demonstrates that Ctrip is still growing at an acceptable pace… even when it’s got external issues to contend with.
One area that Ctrip managed to outperform, however, is net income. The company’s net income attributable to shareholders “increased by more than 19 times year-on-year” to $170 million, according to Ctrip’s press release.
Reiterating her positive message, Ms. Sun said: “We are hugely grateful for the trust of our customers. Together with our partners, we strive to make their travel easier and more enjoyable. There are still many improvements for us to make, and also many areas where we can further unleash our potential. We are in a good position to capture growth in the travel industry, both domestically and globally, and we are very excited about the bright future ahead of us.”
The company’s executive chairman, James Liang, struck a similarly upbeat tone, though he was clear to expand on what future strategy might entail. He added: “In the past 19 years since the launch of Ctrip, we have claimed many firsts in the travel service area. We must be mindful that Ctrip’s success to date has come from the value we created for customers, and this will not change in the future. Despite the challenges and setbacks along the way, we believe that as long as we stick to customer centric principles and continually make investments and innovations, we will become the best travel service provider in the world and the pride of the travel industry.”