Despite posting a 35 percent rise in its second-quarter net income, Ctrip International noted that trips are being delayed until after the games.
The online travel agency shared that its net income was RMB119 million (US$17 million), representing a 35 percent increase from the same period in 2007, and a 21 percent increase from the previous quarter. Net revenues were RMB375 million (US$55 million), up 30 percent year-on-year.
"Although the travel industry in China encountered many difficulties during the second quarter of 2008 after the Sichuan earthquake, Ctrip delivered solid revenue and earnings growth," said Min Fan, CEO, Ctrip.
Jane Sun, chief financial officer of the company, reportedly said many leisure and business travellers were delaying trips until after the Games.
"So we've seen the market has slowed down during the Olympics," she said. "But our expectation is in the fourth quarter all the business and travel volume will be back to normal."
The company also shared that subsequent to the second quarter of 2008, Ctrip signed a definitive agreement to acquire a majority equity stake in one of the leading software companies, which is specialised in Hotel Property Management System (PMS) in China. This acquisition will enhance Ctrip's cooperation with hotels and increase its operational efficiency.
Additionally, Ctrip will be able to support the PMS sales through its hotel networks.
"This acquisition is not expected to have a material effect on our results of operations or financial position," stated the company.
For the third quarter of 2008, Ctrip expects the year-on-year net revenue growth rate to be in the range of 15-20 percent.
EyeforTravel's Travel Distribution and Sales China 2008 Conference
Tang Lan, VP of Marketing, Ctrip is scheduled to speak during EyeforTravel's Travel Distribution and Sales China 2008 Conference in Beijing on 24-25 September.
For information, click here:
http://events.eyefortravel.com/tdchina/agenda.asp or Contact: Reece Gladstone at reece@eyefortravel.com +44 207 375 7158
