Ctrip.Com International Ltd (NASDAQ: CTRP) stock rose over 0.9% in the pre market session of May 23rd, 2019 (Source: Google finance) after the company posted better than expected results for first quarter of FY 19. The company has posted the non-GAAP operating margin of 17%, compared to 14% in the same period in 2018 and 3% in the previous quarter. However, non-GAAP net income attributable to Ctrip’s shareholders fell to RMB1.8 billion (US$260 million), compared to RMB2.1 billion in the same period in 2018 and RMB513 million in the previous quarter. As of March 31, 2019, the company had cash and cash equivalents, restricted cash and short-term investment of RMB61.6 billion (US$9.2 billion).
Meanwhile, CTRP is focusing on expanding the customer base and deepening user engagement. The company has achieved an excellent record of global strategic investments and collaborations.
CTRP in the first quarter of FY 19 has reported the adjusted earnings per share of 44 cents, beating the analysts’ estimates for the adjusted earnings per share of 23 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 21 percent to $1.22 billion in the first quarter of FY 19, beating the analysts’ estimates for revenue of $1.18 billion. Net revenue for the first quarter of 2019 rose by 8% from the previous quarter, mainly due to seasonality. The company has posted gross margin of 79% for the first quarter of 2019, compared to 82% in the same period in 2018, and is consistent with that for the previous quarter.
Accommodation reservation revenue for the first quarter of 2019 rose 21% to RMB3.0 billion (US$450 million), from the same period in 2018, mainly on back of an increase in accommodation reservation volume. Transportation ticketing revenue for the first quarter of 2019 rose 16% to RMB3.4 billion (US$500 million), from the same period in 2018, primarily due to an increase in ticketing volume. Packaged-tour revenue for the first quarter of 2019 grew 25% to RMB1.0 billion (US$156 million), from the same period in 2018, mainly due to rise in volume of organized tours and customized tours. Corporate travel revenue for the first quarter of 2019 grew 32% to RMB238 million (US$35 million), from the same period in 2018, primarily due to an expansion in travel product coverage.
For the second quarter of 2019, the Company expects the net revenue to grow at a year-over-year rate of approximately 16% to 21%.