International growth boosts Ctrip to profitability
Nasdaq-listed Ctrip turned to black thanks to its booming international business as China’s biggest online tourism platform speeds up global expansion, the company said on Thursday.
In the third quarter, Shanghai-based Ctrip posted a net profit of 793 million yuan (US$113.2 million), compared with a loss of 1.1 billion yuan a year ago. Revenue totaled 10.5 billion yuan, up 21 percent year on year.
“Ctrip has continued to gain market shares in both domestic and outbound markets, and is seeing strong growth among overseas travelers,” said James Liang, chairman of Ctrip.
By the latest quarter, Ctrip’s international business accounted for 35 percent of total income, thanks to international brands like Skyscanner and trip.com. Its overseas hotel and accommodation business jumped 50 percent year on year, Ctrip said.
Ctrip announced last month that it would change its parent name from Ctrip.com International to Trip.com Group.
Last week, Trip.com Group announced a strategic partnership with TripAdvisor Inc to expand global cooperation, including a joint venture, global content agreements and a governance agreement.
Ctrip executives also warned about risks to the tourism industry, explaining that company revenue growth has come under pressure from macro and industry headwinds.