CTRP » Topics » Fourth Quarter and Full Year 2006 Financial Results

This excerpt taken from the CTRP 6-K filed Feb 12, 2007.

Fourth Quarter and Full Year 2006 Financial Results

For the fourth quarter of 2006, Ctrip reported total revenues of RMB242 million (US$31 million), representing a 46% increase from the same period in 2005 and a 9% increase from the previous quarter in 2006.

For the full year ended December 31, 2006, total revenues were RMB834 million (US$107 million), representing a 49% increase from 2005.

Hotel reservation revenues amounted to RMB138 million (US$18 million) for the fourth quarter of 2006, representing a 33% increase from the same period in 2005 and a 10% increase from the previous quarter. The total number of hotel room nights booked was approximately 1.94 million in the fourth quarter of 2006, compared to approximately 1.52 million room nights for the same period in 2005 and approximately 1.82 million room nights in the previous quarter. The average commission per room night was RMB71 (US$9) in the fourth quarter of 2006, compared to RMB68 (US$8) in the same period in 2005 and RMB69 (US$9) in the previous quarter.

For the full year ended December 31, 2006, hotel reservation revenues were RMB476 million (US$61 million), a 31% increase from 2005. The hotel reservation revenues accounted for 57% of the total revenues in 2006, compared to 65% in 2005. The total number of hotel room nights booked was approximately 6.84 million in 2006, compared to approximately 5.45 million booked in 2005.

Air ticket booking revenues for the fourth quarter of 2006 were RMB90 million (US$11 million), representing a 72% increase from the same period in 2005 and an 11% increase from the previous quarter. The total number of air tickets sold in the fourth quarter of 2006 was approximately 1.90 million, compared to approximately 1.17 million for the same period in 2005 and approximately 1.72 million in the previous quarter. The average commission per air ticket was RMB46 (US$6) in the fourth quarter of 2006, increased from RMB44 (US$5) in the same period in 2005 and remained consistent with previous quarter.

For the full year ended December 31, 2006, air ticket booking revenues were RMB303 million (US$39 million), an 83% increase from 2005. The air ticket booking revenues accounted for 36% of the total revenues in 2006, compared to 30% in 2005. The total number of air tickets sold was approximately 6.39 million in 2006, compared to approximately 3.67 million air tickets sold in 2005.

 

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Packaged-tour revenues for the fourth quarter of 2006 were RMB11 million (US$1 million), up 56% from the same period in 2005 and down 15% from the previous quarter due to seasonality.

For the full year ended December 31, 2006, packaged tour revenues were RMB42 million (US$5 million), an 83% increase from 2005. The packaged tour revenues accounted for 5% of the total revenues in 2006.

For the fourth quarter of 2006, net revenues were RMB226 million (US$29 million), a 45% increase from the same period in 2005. Net revenues increased by 8% from the previous quarter in 2006.

For the full year ended December 31, 2006, net revenues were RMB780 million (US$100 million), a 49% increase from 2005.

Gross margin was 80% in the fourth quarter of 2006, compared to 81% for the same period in 2005 and 79% in the previous quarter.

For the full year ended December 31, 2006, gross margin was 80%, compared to 83% in 2005. This decrease was largely due to the relatively higher cost of services as a result of increased revenue contribution from air ticketing and packaged tours.

Product development expenses for the fourth quarter of 2006 increased by 75% to RMB31 million (US$4 million) from the same period in 2005 and increased by 13% compared to the previous quarter, primarily due to the increase of product development personnel resources. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 12% of the net revenue, and remained relatively consistent with 11% in the same period last year and the previous quarter.

For the full year ended December 31, 2006, product development expenses were RMB106 million (US$14 million), increased by 83% from 2005. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 12% of the net revenue, and remained relatively consistent with 11% in 2005.

Sales and marketing expenses for the fourth quarter of 2006 increased by 46% to RMB49 million (US$6 million) from the same period in 2005 and 2% from the previous quarter, primarily due to the increase of sales and marketing personnel resources. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 21% of the net revenue, and remained consistent with 21% in the same period last year and decreased slightly from 22% in the previous quarter.

For the full year ended December 31, 2006, sales and marketing expenses were RMB172 million (US$22 million), increase by 53% from 2005. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 21% of the net revenue, remained consistent with 21% in 2005.

General and administrative expenses for the fourth quarter of 2006 increased by 92% to RMB25 million (US$3 million) from the same period in 2005, primarily due to the increase of personnel resources and the incurrence of RMB8 million (US$1 million) for share-based compensation charges. General and administrative expenses remained relatively consistent with the previous quarter. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 8% of the net revenues, remained consistent with 8% for both the same period last year and the previous quarter.

 

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For the full year ended December 31, 2006, general and administrative expenses were RMB93 million (US$12 million), increased by 118% from 2005, primarily due to the incurrence of share-based compensation charges in 2006. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 8% of the net revenues, remained consistent with 2005.

Income from operations for the fourth quarter of 2006 was RMB75 million (US$10 million). Excluding share-based compensation charges (non-GAAP), income from operations was RMB89 million (US$11 million), increased 44% from the same period in 2005 and 13% from the pervious quarter.

For the full year ended December 31, 2006, income from operations was RMB255 million (US$33 million), increased by 15% from 2005. Excluding share-based compensation charges (non-GAAP), income from operations was RMB310 million (US$40 million), increased 38% from 2005.

Operating margin was 33% in the fourth quarter of 2006. Excluding share-based compensation charges (non-GAAP), operating margin was 39% compared to 40% in the fourth quarter of 2005 and 38% in the previous quarter.

For the full year ended December 31, 2006, operating margin was 33%. Excluding share-based compensation charges (non-GAAP), operating margin was 40% compared to 43% in 2005.

Net income for the fourth quarter of 2006 was RMB67 million (US$9 million). Excluding share-based compensation charges (non-GAAP), net income was RMB81 million (US$10 million), representing a 28% increase from the same period in 2005 and a 2% increase from the previous quarter.

For the full year ended December 31, 2006, net income was RMB241 million (US$31 million). Excluding share-based compensation charges (non-GAAP), net income was RMB295 million (US$38 million), representing a 31% increase from 2005.

The diluted earnings per share were RMB2.00 (US$0.26) for the fourth quarter of 2006. Excluding share-based compensation charges (non-GAAP), the diluted earnings per share were RMB2.41 (US$0.31).

For the full year ended December 31, 2006, the diluted earnings per share were RMB7.23 (US$0.93). Excluding share-based compensation charges (non-GAAP), the diluted earnings per share were RMB8.87 (US$1.14), compared to RMB6.97 (US$0.86) in 2005.

As of December 31, 2006, the cash balance was RMB851 million (US$109 million), compared to RMB742 million (US$92 million) as of December 31, 2005.

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