Ctrip.com Surge 8% As Q4 Results Top View, Guides Q1 Revenue Growth Above View

(RTTNews) - Shares of Ctrip.com International Ltd. (CTRP) surged more than eight percent in extended trading on Thursday after the Chinese travel services company reported results for the fourth quarter above analysts' expectations. The company provided revenue growth guidance for the second quarter, well above Street view.

However, the company reported a loss for the fourth quarter compared to a profit last year, despite strong double-digit revenue growth, reflecting significantly lower operating margins.

Additionally, Ctrip announced that Jane Jie Sun, COO since May 2012 and CFO from December 2005 to May 2012, has been promoted and concurrently serve as co-president and COO of the Company, effective immediately.

Ctrip.com International provides travel service of hotel accommodations, airline tickets, packaged tours and corporate travel management in China.

"In the fourth quarter of 2014, our main business lines demonstrated strong momentum, Accommodation reservation and transportation ticketing services reached 53% and 102% year-over-year volume growth respectively. Total GMV of packaged tour business reached RMB13 billion in 2014. Our new initiatives have propelled the expansion in our market share," Chairman and CEO James Liang said in a statement.

Shanghai-based Ctrip.com reported a net loss of RMB 224.42 million or $36.17 million for the fourth quarter, compared to net income of RMB 261.48 million in the prior-year quarter. Loss per ADS was RMB 1.60 or $0.26, compared to earnings of RMB 1.68 last year.

Excluding share-based compensation charges, adjusted net loss for the quarter was RMB 97.82 million or $16 million, compared to net income RMB 367.75 million in the prior-year quarter. Adjusted loss per ADS were RMB 0.70 or $0.11, compared to RMB 2.36 or $0.39 a year ago.

Total revenues for the quarter increased 32 percent to RMB 2.02 billion or $325.63 million from RMB 1.53 billion in the same quarter last year.

Net revenues grew 33 percent to RMB 1.91 billion or $308.37 million from RMB 1.44 billion in the prior-year quarter.

On average, analysts polled by Thomson Reuters expected the company to report a loss of $0.28 per share for the quarter on revenues of $304.78 million. Analysts' estimates typically exclude special items.

Ctrip.com's accommodation reservation revenues for the quarter grew 31 percent to RMB 842 million or $136 million, primarily driven by a 53 percent increase in accommodation reservation volume, partly offset by a decline in commission per room night.

Transportation ticketing revenues rose 34 percent to RMB 774 million or $125 million, reflecting a 102 percent increase in air ticketing sales volume.

Packaged-tour revenues increased 20 percent to RMB 233 million or $38 million, due to the 54 percent surge in organized and self-guided tour volume. Corporate travel revenues grew 38 percent to RMB 108 million or $17 million, driven by the increased corporate travel demand from business activities.

Gross margins for the quarter contracted 400 basis points to 69 percent from last year's 73 percent.

Looking ahead to first quarter, Ctrip.com forecasts net revenue growth of about 40 to 50 percent from the prior year. Analysts expect the company to report a 31.1 percent growth in revenues to $333.65 million.

"2015 could be another exciting year. We will continue to focus on technology, service quality and efficiency, product comprehensiveness and price competitiveness, to create greater value for our customers, our partners, our employees and ultimately, our investors," Liang adeed.

CTRP closed Thursday's regular trading session at $46.14, down $0.08 or 0.17% on a volume of 6.17 million shares. However, the stock surged $3.86 or 8.37% in after-hours trading.