SHANGHAI, Aug. 4 /PRNewswire-Asia/ -- Ctrip.com International, Ltd. (Nasdaq: CTRP), a leading travel service provider for hotel accommodations, airline tickets and packaged tours in China, today announced its unaudited financial results for the quarter ended June 30, 2009.

    Highlights for the Second Quarter of 2009
    -- Net revenues were RMB476 million (US$70 million) for the second quarter
       of 2009, up 27% year-on-year.
    -- For the second quarter of 2009, Ctrip consolidated the financial
       statements of ezTravel, a Taiwan based on-line travel service provider.
       Excluding net revenues attributable to ezTravel, Ctrip's net revenues
       were RMB453 million (US$66 million) for the second quarter of 2009, up
       21% year-on-year.
    -- Gross margin was 77% for the second quarter of 2009, compared to 79% in
       the same period in 2008.
    -- Income from operations was RMB164 million (US$24 million) for the
       second quarter of 2009, up 29% year-on-year. Excluding share-based
       compensation charges (non-GAAP), income from operations was RMB191
       million (US$28 million), up 20% year-on-year.
    -- Operating margin was 34% in the second quarter of 2009, remaining
       consistent with the second quarter of 2008. Excluding share-based
       compensation charges (non-GAAP), operating margin was 40%, compared to
       42% during the same period in 2008.
    -- Net income attributable to Ctrip's shareholders was RMB159 million
       (US$23 million) in the second quarter of 2009, up 33% year-on-year.
       Excluding share-based compensation charges (non-GAAP), net income
       attributable to Ctrip's shareholders was RMB186 million (US$27 million),
       up 23% year-on-year.
    -- Diluted earnings per ADS were RMB2.27 (US$0.33). Excluding share-based
       compensation charges (non-GAAP), diluted earnings per ADS were RMB2.66
       (US$0.39).
    -- Share-based compensation charges were RMB27 million (US$4 million),
       accounting for 6% of the net revenues, or RMB0.39 (US$0.06) per ADS,
       for the second quarter of 2009.

'We are pleased that our team once again delivered solid results in the second quarter of 2009. We strengthened our competitiveness despite the challenges that we faced during this period,' said Min Fan, Chief Executive Officer of Ctrip, 'We will continue to improve our customer service, to apply new technologies, and to broaden sales and marketing channels in order to extend our leadership.'

Second Quarter 2009 Financial Results

For the second quarter of 2009, Ctrip reported total revenues of RMB508 million (US$74 million), representing a 26% increase from the same period in 2008 and an 18% increase from the previous quarter.

Hotel reservation revenues amounted to RMB227 million (US$33 million) for the second quarter of 2009, representing a 16% increase year-on-year, and a 21% increase quarter-on-quarter. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues were RMB223 million (US$33 million), representing a 14% increase year-on-year, primarily driven by a 26% increase in hotel reservation volume, which was partially offset by a decrease in commission per room. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues increased by 19% quarter-on-quarter, primarily driven by a 24% increase in hotel room reservation volume, which was partially offset by a decrease in commission per room.

Air-ticketing revenues for the second quarter of 2009 were RMB222 million (US$33 million), representing a 32% increase year-on-year, and a 20% increase quarter-on-quarter. Excluding revenues attributable to ezTravel, Ctrip's air- ticketing revenues were RMB215 million (US$31 million) for the second quarter of 2009, representing a 27% increase year-on-year, primarily driven by a 42% increase in air-ticketing sales volume, which was partially offset by a decrease in commission per ticket. Excluding revenues attributable to ezTravel, Ctrip's air-ticketing revenues grew 17% quarter-on-quarter, primarily driven by increases in air-ticketing sales volume and commission per ticket.

Packaged-tour revenues for the second quarter of 2009 were RMB36 million (US$5 million), representing a 51% increase year-on-year, and a 5% decrease quarter-on-quarter. Excluding revenues attributable to ezTravel, Ctrip's packaged-tour revenues for the second quarter of 2009 increased by 13% year-on-year, due to the increase in the leisure travel volume. Excluding revenues attributable to ezTravel, Ctrip's packaged-tour revenues decreased by 28% quarter-on-quarter, primarily due to the impact of H1N1 flu and the seasonality of leisure travel.

For the second quarter of 2009, net revenues were RMB476 million (US$70 million), a 27% increase from the same period in 2008 and a 19% increase from the previous quarter. Excluding net revenues attributable to ezTravel, net revenues were RMB453 million (US$66 million), a 21% increase from the same period in 2008 and a 13% increase from the previous quarter.

Gross margin was 77% in the second quarter of 2009, compared with 79% in the same period in 2008 and 78% in the previous quarter.

Product development expenses for the second quarter of 2009 increased by 34% to RMB76 million (US$ 11 million) from the same period in 2008, and by 20% from the previous quarter, primarily due to the increase in product development personnel. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 14% of the net revenues, compared to 13% in the same period of last year and 14% in the previous quarter.

Sales and marketing expenses for the second quarter of 2009 increased by 21% to RMB83 million (US$12 million) from the same period in 2008 and by 17% from the previous quarter primarily due to the increase in sales and marketing activities and personnel. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 17% of the net revenues, which was consistent with that in the same period last year and in the previous quarter.

General and administrative expenses for the second quarter of 2009 increased by 6% to RMB45 million (US$7 million) from the same period in 2008 and 10% from the previous quarter primarily due to the increase in personnel. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, which was consistent with that in the same period last year and in the previous quarter.

Income from operations for the second quarter of 2009 was RMB164 million (US$24 million), representing a 29% increase from the same period in 2008 and a 21% increase from the previous quarter. Excluding share-based compensation charges (non-GAAP), income from operations was RMB191 million (US$28 million), representing a 20% increase from the same period in 2008 and an 18% increase from the pervious quarter.

Operating margin was 34% in the second quarter of 2009, remaining consistent with the second quarter of 2008 and that of the previous quarter. Excluding share-based compensation charges (non-GAAP), operating margin was 40% in the second quarter of 2009 compared to 42% in the second quarter of 2008, and remained consistent with that in the previous quarter.

Net income attributable to Ctrip's shareholders for the second quarter of 2009 was RMB159 million (US$23 million), representing a 33% increase from the same period in 2008, and a 31% increase from the previous quarter. Net income attributable to Ctrip's shareholders for the current quarter includes equity income of RMB7 million (US$1 million) from the Home Inns' investment, which represents proportional equity pick-up of its results of operations from the third quarter of 2008 through the first quarter of 2009 as required by applicable accounting guidelines.