Ctrip.Com International Ltd (ADR) (NASDAQ: CTRP) stock surged over 5.8% on September 9th, 2018 (As of 12:12 PM GMT-4; Source: Google finance) though the company in the second quarter of FY 18 has reported whopping 564% rise in net income attributed to Ctrip’s shareholders on year-on-year basis to RMB2.4 billion (US$360 million) compared to RMB359 million for the same period in 2017. The net revenue rose by 13% year-on-year to RMB7.3 billion (US$1.1 billion) for the second quarter of 2018. Non-GAAP operating margin was 16% for the second quarter of 2018, compared to 14% for the previous quarter. Non-GAAP diluted earnings per ADS is of RMB1.90(US$0.29) for the second quarter of 2018. As of June 30, 2018, the balance of cash and cash equivalents, restricted cash and short-term investments was RMB57.7 billion (US$8.7 billion).
Meanwhile, excluding Skyscanner, both international hotel and air businesses had reported around 40% volume growth rate in the second quarter of 2018, due to the robust growth of the outbound travel business and the popularity of Trip.com. Skyscanner’s direct booking program has continued to gain momentum, which delivered revenue growth of approximately 600% year-on-year in the second quarter of 2018.
Additionally, in the second quarter 2018, CTRP’s Accommodation reservation revenue is of RMB2.8 billion (US$425 million), which is a 21% increase from the same period in 2017, primarily driven by an increase in accommodation reservation volume. Transportation ticketing revenue for the second quarter of 2018 was RMB3.0 billion (US$457 million), a 1% rise from the same period in 2017. Packaged tour revenue for the second quarter of 2018 was RMB839 million (US$127 million), representing a 31% increase from the same period in 2017, primarily driven by an increase in volume growth of organized tours and self-guided tours. Packaged tour revenue for the second quarter of 2018 increased by 1% from the previous quarter. Corporate travel revenue for the second quarter of 2018 was RMB255 million (US$38 million), representing a 28% increase from the same period in 2017, primarily driven by expansion in travel product coverage.
For the third quarter of 2018, the company expects the net revenue growth to continue at a year-on-year rate of approximately 13%-18%
On the other hand, CTRP continued to see the fast development of offline stores. In mid-August of 2018, all the stores together achieved a new industry record of RMB70 million gross merchandise volume in a single day.