Like its U.S. peers, Ctrip is seeing decreases revenue from traditional services like airline tickets, and greater value with hotels and vacation packages.
Chinese travel company Ctrip.com International Ltd. reported its net income rose 92 percent in the third quarter, helped by a sharp increase in travel-package and hotel bookings.
Details: Revenue from hotel reservations rose 34 percent, Ctrip.com said, while packaged-tour sales were up 43 percent. However, the company said it was earning lower commissions per ticket as it was a year ago.
Numbers: Net income was 373 million Chinese yuan ($60.9 million), or 2.44 yuan per American depositary share in the quarter ending Sept. 30. That’s up from 193.8 million yuan, or 1.41 yuan per ADS, in the same period a year ago. Company revenues were 1.64 billion yuan, up from 1.25 billion yuan a year ago. Ctrip had an adjusted profit excluding share-based compensation of 51 cents per ADS, beating the 41 cents that analysts polled by FactSet had expected.
Future: Ctrip had 100 million yuan in sales through mobile devices in the quarter. The company expects mobile sales to become a large percentage of the company’s sales going forward and eventually mobile will be Ctrip’s dominant booking platform.
Stock: U.S.-traded shares of Ctrip.com were down $4.59, or 7.75 percent, to $54.60 in aftermarket trading. Through Tuesday’s regular-session close, the stock is up more than 160 percent this year.
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