- For the second quarter in a row (previous), Ctrip (CTRP +23.2%) is taking off after soundly beating estimates. eLong (LONG +12.7%) is rallying in sympathy.
- 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.
- Q2 results, PR, CC transcript
Ctrip soars to new 52-week highs on Q2 beat, in-line guidance
Aug 1 2013, 10:05 ET