Ctrip.Com International Ltd (ADR)(NASDAQ: CTRP) stock rose 1.1% in the after-hours session on August 30th, 2017 as they delivered a solid top line performance. Net revenue enhanced 45% yoy to RMB6.4 billion during the second quarter of 2017, driven by solid accommodation reservation business and high volume growth of organic businesses. Accommodation reservation revenue enhanced 30% yoy to RMB2.3 billion (US$341 million) during the quarter and rose 12% against earlier quarter, on the back of seasonality.
Strong implementation of organic air ticketing business, coupled with rapidly growing new business units drove the transportation ticketing business. Moreover the Skyscanner addition also contributed to the Ctrip group. Skyscanner launched their “direct booking” business, which enables travelers with a seamless booking experience. Conversion rates of mobile traffic for direct-booking partners have enhanced over 50%. Transportation ticketing revenue surged 49% yoy to RMB3.0 billion (US$441 million), and rose 4% yoy against earlier quarter.
Packaged-tour revenue enhanced 29% yoy to RMB612 million (US$90 million), boosted by a volume growth of organized tours and self-guided tours. But, Packaged-tour revenue fell 13% yoy during the quarter hurt by seasonality for Chinese New Year in the first quarter. Corporate travel revenue surged 36% yoy to RMB199 million (US$29 million), boosted by expansion in travel product coverage.
Accordingly, Gross margin enhanced to 82% during the second quarter of 2017, from 72%in pcp and against 80% in earlier quarter.
Ctrip witnessed ongoing penetration in lower-tier cities driven by new customer acquisition and user engagement. Ctrip and Qunar have opened over 400 offline retail stores by the end of the quarter with over 200 more in the pipeline. Ctrip intends to remain focused on operating fundamentals that generate value for their customers and suppliers. They are also targeting international markets in the first half of 2017 and intends to continue to invest in these markets. They are also enhancing their comprehensive product offering, providing superior services and driving effective marketing to serve both domestic and international customers.
Ctrip.Com stock lost over 11.7% in the last four weeks and rose over 10.6% in the last six months.