Ctrip Beats By $0.07; Stock Down on Avian Flu Concerns (CTRP 3Q05 Earnings)

Ctrip (ticker: CTRP), a Chinese online consolidator of hotel accommodations and airline tickets reported Q3 2005 results today that beat consensus fully diluted earnings per ADS estimates by $0.07. Key stats from the quarter:

Q3 Results
(all percentage changes and comparisons are year on year, unless stated otherwise, assumes RMB 8.0930 : US $ 1)

• Total revenue rose 56.3% to $18.6 million, and rose 9% sequentially.
• Net revenue rose 55.3% to $17.4 million. Consensus estimate of $17.16 million.
• Hotel reservation revenue rose 28.8% to $11.9 million, and rose 4% sequentially.
• Air ticketing revenue rose 159.9% to $5.7 million, and rose 25% sequentially.
• Packaged tour revenue rose 120.3% to $807,779, and rose 13% sequentially.
• Other revenue rose 86.0% to $198,994.
• Gross margin was 82.9% vs 86.4%.
• Operating expenses rose 45.3% to $6.7 million.
• Product development expenses rose 45.3% to $1.7 million.
• Sales and marketing expenses rose 61.0% to $3.6 million.
• General and administrative expenses rose 17.5% to $1.3 million.
• Operating income rose 52.3% to $7.7 million, and rose 9% sequentially.
• Operating margin was 44.4% vs 45.3%.
• Net income rose 70.9% to $8.1 million, and rose 16% sequentially.
• Net margin was 46.6% vs 42.4%.
• Diluted earnings per ADS of $0.49 vs $0.30, and vs consensus estimate of $0.42.

Balance Sheet
(as of September 30, 2005, assumes RMB 8.0930 : US $ 1)

• Cash and equivalents of $82.2 million.

Q4 Guidance

• Net revenue growth of approximately 40%.
• Ctrip also expects to distribute 30% of 2005 audited net income as dividends as approved by the shareholders and the board of directors, to the shareholders of record as of December 31, 2005.

CTRP chart.