Biz / Tech

Ctrip's Q1 net profit comes in better than expected

Ctrip taps boom in outbound tourism and good investment return to beat analysts' expectations. 

Nasdaq-listed Ctrip's net profit came in better than expected in the first quarter of the year as investment generated good returns and outbound tourism demand boomed, China’s biggest online tourism service provider said today.

The Shanghai-based firm's net profit  rose to 1.1 billion yuan (US$170 million) in the first quarter from 52 million yuan a year ago

Its operating profit, adjusted for non-recurring costs and stock options, grew eight percent from a year ago to 966 million yuan in the quarter. Its earnings rose to 29 US cents per share, beating analysts’ forecast of 15 US cents per share.

The company's revenue surged 11 percent from a year ago to 6.7 billion yuan in the quarter.

Revenue from international air tickets accounted for 40 percent of Ctrip’s total air ticket income — one of the major engines for the company.

In 2017, Chinese made more than 130 million international trips and spent US$115.3 billion. Within the next five years, they are set make 700 million international trips according to industry insiders.

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