PEKING (dpa-AFX) - Travel services provider Ctrip.com International Ltd. (CTRP), Wednesday reported a lower first-quarter profit as increased product development and sales expenses offset broad-based revenue growth. Earnings for the quarter fell short of analysts' estimates by a penny, while revenues topped expectations.
Notwithstanding the decline in earnings, Ctrip.com shares gained 5 percent in after-hours trade on the Nasdaq.
Ctrip.com also announced executive changes, naming Jane Jie Sun as its new chief operating officer. Jane Jie Sun, who until now served as Ctrip.com chief financial officer, will be replaced by deputy CFO Jenny Wenjie Wu, the company said.
Ctrip.com said its quarterly results were impacted by a 3 percent year-over-year drop in gross margin to 75 percent, while operating margin receded to 19 percent from 34 percent.
Total revenues meanwhile rose 18 percent from last year. Excluding business tax and other surcharges, net revenues were up 19 percent.
Hotel reservation revenues grew 18 percent from last year, on a 21 percent growth in reservation volumes. Air-ticketing revenues rose 10 percent, led by a 17 percent increase in air ticketing sales volume.
Packaged tour revenues were up 33 percent year-over-year on higher leisure travel volumes, and Corporate travel revenues rose 23 percent.
Ctrip.com posted first-quarter net income to shareholders of 169 million renminbi or $27 million, compared to 235 million renminbi last year.
On a per American Depositary Share, or ADS basis, earnings for the quarter were 1.11 renminbi or $0.18 per share, compared to 1.54 renminbi or $0.24 per share last year.
On average, 10 analysts polled by Thomson Reuters expected earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.
Excluding items, adjusted earnings for the quarter were 1.77 renminbi or $0.28 per ADS, compared to 2.01 renminbi or $0.31 per ADS last year.
Total revenues for the quarter were 963.6 million renminbi or $153 million, compared to 814 million renminbi last year.
Net revenues were 910.8 million renminbi or $144.6 million, up from 764.5 million renminbi last year.
Twelve analysts estimated revenues of $143.76 million for the quarter.
CEO Min Fan said, 'In the first quarter, we strengthened all business sectors, expanded into more new business areas and intensified sales and marketing campaigns...'
Looking ahead to the second quarter, the company expects net revenue to grow 15 to 20 percent from last year.
CTRP closed Wednesday at $19.65, up $0.04 or 0.20%, on a volume of about 1.9 million shares. In after hours, the stock gained $1.00 or 5.09%.
Copyright RTT News/dpa-AFX
© 2012 AFX News
