Earnings News Spotlight: Ctrip.com International, Ltd. (NASDAQ:CTRP) releases unaudited financial results

Ctrip.com International, Ltd. (NASDAQ:CTRP) spotted trading -27.45% off 52-week high price. On the other end, the stock has been noted 50.64% away from the low price over the last 52-weeks. The stock changed -0.61% to recent value of $37.66. The stock transacted 6593324 shares during most recent day however it has an average volume of 5456.87K shares. The company has 585.32M of outstanding shares and 281.38M shares were floated in the market.

Ctrip.com International, Ltd. (NASDAQ:CTRP) released its unaudited financial results for the first quarter ended March 31, 2019.

First Quarter of 2019 Financial Results and Business Updates

For the first quarter of 2019, Ctrip reported net revenue of RMB8.2 billion (US$1.2 billion), representing a 21% increase from the same period in 2018. Net revenue for the first quarter of 2019 increased by 8% from the previous quarter, primarily due to seasonality.

Accommodation reservation revenue for the first quarter of 2019 was RMB3.0 billion (US$450 million), representing a 21% increase from the same period in 2018, primarily driven by an increase in accommodation reservation volume. Accommodation reservation revenue for the first quarter of 2019 increased by 14% from the previous quarter, primarily due to seasonality.

Transportation ticketing revenue for the first quarter of 2019 was RMB3.4 billion (US$500 million), representing a 16% increase from the same period in 2018, primarily driven by an increase in ticketing volume. Transportation ticketing revenue for the first quarter of 2019 decreased by 2% from the previous quarter.

Packaged-tour revenue for the first quarter of 2019 was RMB1.0 billion (US$156 million), representing a 25% increase from the same period in 2018, primarily driven by an increase in volume of organized tours and customized tours. Packaged-tour revenue for the first quarter of 2019 increased by 45% from the previous quarter, primarily due to seasonality.

Corporate travel revenue for the first quarter of 2019 was RMB238 million (US$35 million), representing a 32% increase from the same period in 2018, primarily driven by expansion in travel product coverage. Corporate travel revenue for the first quarter of 2019 decreased by 15% from the previous quarter, primarily due to seasonality.

Gross margin was 79% for the first quarter of 2019, compared to 82% in the same period in 2018, and remained consistent with that for the previous quarter.

Product development expenses for the first quarter of 2019 increased by 18% to RMB2.5 billion (US$379 million) from the same period in 2018, primarily due to an increase in product development personnel related expenses. Product development expenses decreased by 6% from the previous quarter, primarily due to a decrease in product development personnel related expenses. Product development expenses for the first quarter of 2019 accounted for 31% of the net revenue for the same period. Excluding share-based compensation charges, non-GAAP product development expenses for the first quarter of 2019 accounted for 28% of the net revenue for the same period, which decreased from 29% for the same period of 2018 and 33% for the previous quarter.

Sales and marketing expenses for the first quarter of 2019 increased by 6% to RMB2.2 billion (US$331 million) from the same period in 2018, primarily due to an increase in sales and marketing personnel related expenses. Sales and marketing expenses decreased by 15% from the previous quarter, primarily due to a decrease in sales and marketing related activities. Sales and marketing expenses for the first quarter of 2019 accounted for 27% of the net revenue for the same period. Excluding share-based compensation charges, non-GAAP sales and marketing expenses for the first quarter of 2019 accounted for 27% of the net revenue for the same period, which decreased from 31% in the same period in 2018 and 34% in the previous quarter.

General and administrative expenses for the first quarter of 2019 increased by 28% to RMB824 million (US$123 million) from the same period in 2018, primarily due to an increase in general and administrative personnel related expenses, including share-based compensation charges. General and administrative expenses increased by 3% from the previous quarter. General and administrative expenses for the first quarter of 2019 accounted for 10% of the net revenue for the same period. Excluding share-based compensation charges, non-GAAP general and administrative expenses accounted for 8% of the net revenue for the same period, which remained consistent with those for the same period in 2018 and the previous quarter.

Income from operations for the first quarter of 2019 was RMB885 million (US$132 million), compared to income from operations of RMB590 million in the same period in 2018 and loss from operations of RMB189 million in the previous quarter. Income from operations increased by 50% year-over-year in the first quarter of 2019. Excluding share-based compensation charges, non-GAAP income from operations was RMB1.4 billion (US$204 million), compared to RMB966 million in the same period in 2018 and RMB261 million in the previous quarter. Non-GAAP income from operations increased by 42% year-over-year in the first quarter of 2019.

Operating margin was 11% for the first quarter of 2019, compared to 9% in the same period in 2018, and -3% in the previous quarter. Excluding share-based compensation charges, non-GAAP operating margin was 17%, compared to 14% in the same period in 2018 and 3% in the previous quarter.

Income tax expense for the first quarter of 2019 was RMB677 million (US$101 million), compared to RMB179 million in the same period of 2018 and RMB35 million in the previous quarter. The change in our effective tax rate primarily reflected certain non-taxable income of the fair value changes in equity securities investments.

Net income attributable to Ctrip’s shareholders for the first quarter of 2019 was RMB4.6 billion (US$687 million), compared to net income attributable to Ctrip’s shareholders of RMB1.1 billion in the same period in 2018 and net loss attributable to Ctrip’s shareholders of RMB1.2 billion in the previous quarter, mainly due to the RMB3.3 billion gain from fair value changes in equity securities investments, gains recognized for several investing activities, and a reversal of an investment provision made in previous years. Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP net income attributable to Ctrip’s shareholders was RMB1.8 billion (US$260 million), compared to RMB2.1 billion in the same period in 2018 and RMB513 million in the previous quarter.

Diluted earnings per ADS were RMB7.45 (US$1.11) for the first quarter of 2019. Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP diluted earnings per ADS were RMB2.93 (US$0.44) for the first quarter of 2019.

As of March 31, 2019, the balance of cash and cash equivalents, restricted cash and short-term investment was RMB61.6 billion (US$9.2 billion).

Business Outlook

For the second quarter of 2019, the Company expects the net revenue growth to continue at a year-over-year rate of approximately 16~21%. This forecast reflects Ctrip’s current and preliminary view, which is subject to change.

Its earnings per share (EPS) expected to touch remained -41.80% for this year while earning per share for the next 5-years is expected to reach at 3.00%. CTRP has a gross margin of 79.60% and an operating margin of 8.40% while its profit margin remained 3.60% for the last 12 months.

According to the most recent quarter its current ratio was 1.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of -7.85% from the mean of 20 days, -11.08% from mean of 50 days SMA and performed 5.45% from mean of 200 days price. Company’s performance for the week was -3.34%, -14.10% for month and YTD performance remained 39.17%.

Peter Hamm

Peter Hamm is an author, journalist and CEO of the website. He has more than 5 years of experience in institutional investment markets, including fixed income, equities, derivatives and real estate. He has a Bachelor in Business Administration with a major in Finance. He bought his first stocks in a private business at age 15 and made his first public stock trade at 23. He has always been interested in the stock market and how it behaves. As the dad of two children, he’s made saving money and investing for them a high priority. Over many years of investing, he has made some wise choices and he’s made many mistakes. But he’s learned from both. Mr. Peter observations and experience give him the insight to stock market patterns and the investor behaviors that create them. He reports about Earnings news category. Address: 3876 Levy Court, EASTON, Pennsylvania Email: Peter@newscontrol.info

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