Q4 2005 Results:
Net revenue rose 57% y-o-y to $19.2 million above consensus estimate of $18.27 million. Hotel reservation revenue rose 33% y-o-y to $12.9 million, and rose 8% sequentially. Air ticket booking revenue rose 136% y-o-y to $6.4 million, and rose 11% sequentially. Packaged tour revenue rose 106% y-o-y to $0.9 million, and rose 7% sequentially. Gross margin was 81% in 4Q05 vs 84% in 4Q04. Operating income rose 84% y-o-y to $7.5 million. Operating margin was 39% vs 33% in 4Q04. Net income rose 50% y-o-y to $7.8 million. Net margin was 40% vs 42% in 4Q04. Fully diluted earnings per ADS of $0.47 above consensus estimate of $0.39.
Total number of hotel room nights booked was approximately 1.52 million vs 1.19 million room nights in 4Q04 and approximately 1.44 million room nights in 3Q05. Total number of air tickets sold was approximately 1.17 million vs approximately 540,000 air tickets sold in 4Q04 and approximately 1.02 million air tickets sold in 3Q05.
Q1 2006 Guidance:
Year-on-year revenue growth of 35%. (Editor: Ctrip reported revenue of $11.7 million in Q1 2005. Thus 35% y-o-y revenue growth equals $15.795 million, below consensus estimate of $16.93 million.)
FY 2006 Guidance:
Year-on-year revenue growth of 35% (Editor: $87.21 million) above consensus estimate of $86.98 million.