Ctrip released Q2 financial report: revenue of 8.7 billion yuan, up 19percent year-on-year.

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 Ctrip released Q2 financial report: revenue of 8.7 billion yuan, up 19percent year-on-year.


In the second quarter of 2019, Ctrips net operating income was 8.7 billion yuan ($1.3 billion), an increase of 19% over the same period last year. Net operating income rose by 6% in the second quarter of 2019.

In the second quarter of 2019, the operating income of accommodation booking was 3.4 billion yuan ($497 million), up 21% year-on-year, mainly due to the high execution of our brand team in expanding accommodation coverage and improving customer experience. In the second quarter of 2019, the business income of accommodation booking increased by 13% annually, mainly affected by seasonal factors.

In the second quarter of 2019, traffic ticketing revenue was 3.4 billion yuan ($496 million), up 13% year-on-year, mainly due to the strong demand for international air ticket booking and the growth of ground traffic volume. In the second quarter of 2019, traffic ticketing revenue rose by 2% annually.

In the second quarter of 2019, the revenue of tourism and vacation business was 1.1 billion yuan ($153 million), an increase of 25% over the previous year, mainly due to the growth of offline stores and customized tourism business. In the second quarter of 2019, the business income of tourism and vacation business was equal to that of the last quarter.

In the second quarter of 2019, the business revenue of business travel management business was 309 million yuan ($45 million), an increase of 21% over the same period of last year. The growth was mainly due to the increase of business customers and the optimization of product structure. In the second quarter of 2019, business and travel management business revenue rose by 30% annually, mainly due to seasonal factors.

Gross profit margin in the second quarter of 2019 was 79%, compared with 80% in the same period in 2018, and was flat in the previous quarter.

The cost of product development in the second quarter of 2019 was 2.6 billion yuan ($385 million), up 17% from the same period last year. In the second quarter of 2019, the cost of product development rose by 4% annually, mainly due to the increase of related costs of product developers. Product development costs accounted for 30% of net operating income in the second quarter of 2019. Excluding equity remuneration costs, product development costs accounted for 28% of net operating income in the second quarter of 2019, up from 27% in the same period in 2018, which was the same as the previous quarter.

Sales and marketing expenses in the second quarter of 2019 were 2.1 billion yuan ($308 million), down 4% year-on-year and 5% year-on-year, mainly due to the reduction of related sales and marketing activities. Sales and marketing expenses accounted for 24% of net operating income in the second quarter of 2019. Excluding equity remuneration costs, sales and marketing expenses accounted for 24% of net operating income in the second quarter of 2019, down from 29% in the same period of 2018 and 27% in the previous quarter.

In the second quarter of 2019, the management fee was 810 million yuan ($118 million), up 18% from the same period last year, mainly due to the increase of management related expenses. In the second quarter of 2019, management costs fell by 2% annually. Management expenses accounted for 9% of net operating income in the second quarter of 2019. Excluding equity remuneration fees, management fees accounted for 8% of net operating income in the second quarter of 2019, up from 7% in the same period in 2018, and unchanged from the previous quarter.

In the second quarter of 2019, the operating profit margin was 15%, 10% compared with the same period in 2018 and 11% compared with the previous quarter. Excluding equity remuneration costs, the operating profit margin in the second quarter of 2019 was 20%, 16% compared with the same period in 2018 and 17% compared with the previous quarter.

In the second quarter of 2019, the income tax cost was 336 million yuan (US$49 million), compared with 322 million yuan in the same period of 2018, and 677 million yuan in the last quarter. The change of the group effective income tax rate is mainly due to the change of the contribution proportion of the subsidiary companies applying the preferential tax rate, including the fair value change income of some non-deductible fees and interests for the sale of financial assets.

The net loss attributable to Ctrip shareholders in the second quarter of 2019 was RMB 403 million (US$59 million), compared with RMB 2.4 billion in the same period in 2018 and RMB 4.6 billion in the last quarter, mainly due to the loss of the fair value of the financial assets available for sale in the interest category of RMB 1.3 billion. The net profit of Ctrip shareholders in the second quarter of 2019 was 1.3 billion yuan ($193 million), compared with 1.1 billion yuan in the same period of 2018, and 1.8 billion yuan in the last quarter, excluding the changes in fair value of financial assets available for sale in terms of equity remuneration fees and rights. In the second quarter of 2019, diluted depository receipts lost 0.73 yuan ($0.11) per share. In the second quarter of 2019, the diluted earnings per depository receipt were 2.25 yuan (US$0.33), excluding equity remuneration fees and fair value changes in equity-related financial assets available for sale. As of June 30, 2019, the balance of cash, short-term investments, time deposits and financial products held to maturity was 67.8 billion yuan ($9.9 billion). Source: Liable Editor of Netease Science and Technology Report: Yao Liwei_NT6056

In the second quarter of 2019, diluted depository receipts lost 0.73 yuan ($0.11) per share. In the second quarter of 2019, the diluted earnings per depository receipt were 2.25 yuan (US$0.33), excluding equity remuneration fees and fair value changes in equity-related financial assets available for sale.