Ctrip is a bit difficult for 20 years

On September 10, the domestic online travel big brother ctrip released as of June 30, 2019 in the second quarter (Q2) results in Q1 turnround, ctrip Q2 again at a loss.

Revenue, ctrip Q2 net revenue of 8.7 billion yuan (RMB, similarly hereinafter), up 19% from a year earlier, rose 6%.Among them:

Driven by seasonal factors, hotel booking business income rose 21% to 3.4 billion yuan, the year-on-year growth rate of 13%;

Traffic ticket income rose 13% to 3.4 billion yuan, the year-on-year growth rate of only 2%;

The offline store sales and custom demand growth drivers, holiday tour business income rose 25% to 1.1 billion yuan, from flat Q1;

Business revenue grew 21% to 309 million yuan, the year-on-year growth rate of 13%.

Profits, ctrip Q2 operating profit rose 84% year-on-year to 1.3 billion yuan;Operating profit margin of 15%, from 10% during the same period last year and Q1 11% increase.Remove the equity incentive spending, non - QQ2 under GAAP operating profit and profit of 1.7 billion yuan and 20% respectively.

Outwardly decent revenue data failed to bring profit to ctrip, ctrip net loss of 403 million yuan, Q2 to shareholders in the same period last year and Q1 this year net profit of 2.4 billion yuan and 4.6 billion yuan respectively.Q4 is similar with last year, ctrip will loss attributed to based on securities investment losses on the changes in the fair value of 1.3 billion yuan.Remove the equity incentive spending and based on the changes in the fair value of the securities investment profit and loss, due to non - ctrip shareholders GAAP net income of 1.3 billion yuan, a year-on-year increase of fell.

Although earnings than analysts had expected, but investors seem to don't buy it - results released on the same day, ctrip shares opened sharply difficult shock rebound after hitting $33.55, finally closed at $34.17, down 2.68% on the previous trading day.

Leading to shake

Earnings conference call, in response to an analyst at Morgan Stanley, ctrip CEO said to clsa, ctrip is currently in the domestic market share has become more stable, ctrip is unlikely to get an exponential growth, however, ctrip will continue efforts to increase market share.

Ctrip should indeed worry about growth - the basis of the share of the city.Hotel reservations is ctrip section, the advantages of traditional analysis shows, however, as early as 2017, Meituan has more than ctrip on the amount of room nights.And, according to a report Trustdata recently published data in the first half of 2019, Meituan hotel in the domestic online hotel reservation orders and the amount of room nights are accounted for more than ctrip go, respectively reached 50.6% of order quantity proportion and amount of room nights accounted for 47.3%.

At the share in domestic hotel booking business city, ctrip has been Meituan more than.Which ever more Meituan on hotel revenue has obvious advantages, are constantly being narrow.Meituan to store, hotel and tourism sector revenue in Q1 and Q2 year-on-year growth in more than 40%, compared with growth of ctrip is only half the Meituan.

Hotel reservations have been chased hard drive, the transportation booking business revenue growth has been declining trend, from 2018 Q1 to Q3 single-digit growth (0%, 1%, 6%), in the same year Q4 for total orders after receive a 17% year-on-year surge in growth, continued decline in this year, from 16% in Q1 fell to 13% of the Q2.

This 13% growth is based on the strong growth of international air ticket business, ctrip to remove day tour web international air ticket business during the same period the growth rate of Q2 is 2 times bigger than the growth rate of domestic outbound travel, account for 40% to 45% of total revenue.During the Q2 including cross-border travel service in greater China and other countries, the international business accounted for more than 35% of the total ctrip revenue.