Ctrip returns to black in second quarter with US$48 million profit

Nasdaq-listed Ctrip returned to black in the second quarter amid booming transport ticket orders and accommodation reservations, China’s biggest online travel service platform said today.

Shanghai-based Ctrip benefits from China’s consumption upgrade because people spend more on traveling, education, healthcare and entertainment. 

In the second quarter, Ctrip’s net profit was 327 million yuan (US$48 million), reversing its loss of 521 million yuan a year ago. Its revenue totaled 6.4 billion yuan, or US$946 million — up 45 percent year on year and higher than analysts expectations of US$945 million.

"Ctrip has made good progress in expanding into lower-tier cities and increasing its presence in international markets,” James Liang, Ctrip’s executive chairman, said in a statement. "We will continue to invest in these markets… and serve both domestic and international customers.”

The transport ticket business contributed 3 billion yuan of revenue in the second quarter, a 49 percent expansion year on year, with international air tickets growing rapidly because passengers in overseas markets use Ctrip and Skyscanner, a company Ctrip acquired in 2016.

The accommodation business grew 30 percent year on year and contributed 2.3 billion yuan income to Ctrip. The company also tapped into the Airbnb-like house-sharing market in China.

Ctrip expects net revenue growth to continue at an annual 35 to 40 percent in the third quarter.