Q3 guidance is for 20%-25% revenue growth, in-line with a 23.9% consensus. But the Chinese online travel service firm has shown over the last 2 quarters it guides conservatively.
Though the results show Ctrip continues to face price pressure (long a concern of many analysts), the company's huge volume growth is more than making up for it.
Q2 hotel reservation revenue (39% of total) +13% Q/Q and +25% Y/Y, with volumes up 44% and commission/room down 14%.
Air ticketing services revenue (40% of total) +14% Q/Q and +40% Y/Y, with volumes up 34% commission/ticket down 6%.
Packaged tour revenue -20% Q/Q (seasonality) and +40% Y/Y. Corporate travel +29% Q/Q (seasonality) and +34% Y/Y.
Gross margin was 75%, +100 bps Q/Q and flat Y/Y.
Sales/marketing spend +25% Y/Y, R&D +49%, G&A +14%. Revenue growth was 28%. Op. margin was 16% vs. 14% in Q1 and 17% a year ago.
Ctrip mentioned on its CC mobile has become a growth driver, accounting for 20% of hotel bookings and 15% of air ticket bookings.
Morgan Stanley has downgraded Ctrip on valuation grounds. But Stifel and Barclays have upgraded shares.