Ctrip posts profit in Q4 as demand increases in China
Ctrip, a leading travel agency in China, reported a 50% increase in its net revenues for the fourth quarter ended December 31, 2015. The company also earned a profit of ¥76 million during the fourth quarter, compared to a loss in the previous year quarter. The increase in quarterly results was driven by more demand for online ticketing.
Ctrip posted net profit attributable to its shareholders of ¥76 million, compared to a loss of ¥224.4 million in the prior year period. Net income for the fourth quarter increased to ¥49.7 million from a loss of ¥297 million in the same period in 2014. On a non-GAAP basis, net profit attributable to shareholders was ¥272.2 million, compared to a loss of ¥97.8 million in the year-ago period.
Quarterly earnings per share amounted to ¥1.54, compared to a loss of ¥6.41 in the year-ago period. Earnings per ADS was ¥0.19, compared to a loss of ¥0.80 in the corresponding period in 2014. Adjusted earnings per share increased to ¥5.52 from a loss of ¥2.79 per share in the prior year period. Earnings per ADS, excluding special items, was ¥0.69, compared to a loss of ¥0.35 in the previous year period.
Income from operations during the fourth quarter increased to ¥95.2 million from a loss of ¥400.9 million in the previous year period. Non-GAAP income from operations amounted to ¥291.7 million, compared to a loss of ¥274.3 million in the year-ago period.
Net revenues for the period totaled ¥2.9 billion, an increase of 50% from ¥1.9 billion in the same period in 2014. Total revenues rose to ¥3.03 billion from ¥2.02 billion in prior year quarter. Moreover, the company expects net revenue growth rate to be roughly 75% to 80% in the first quarter of 2016.
Meanwhile, analysts from twenty-three research companies have granted Ctrip an average rating of "buy". TheStreet increased Ctrip's stock to a "buy" rating from a "hold" rating while Summit Research set a target price of $125.00 on the company's shares. Deutsche Bank increased its objective price to $55.75 from $42.55 and granted a "buy" rating on the stock, as reported by Financial Market News.
For the year 2015, the company reported a net profit attributable to shareholders of ¥2.5 billion, up from ¥242.7 million in 2014. Net income jumped to ¥2.4 billion from ¥91.6 million in the previous year. On a per share basis, annual earnings rose to ¥56.8 from ¥6.35 in the prior year. Earnings per ADS amounted to ¥7.11 in 2015, up from ¥0.79 in the previous year.
According to Smarter Analyst, Ctrip's shares are down roughly 4% during the after-hours trading session. The company's stock has a 1-year high of $57.36 and low of $22.70.
Net revenues rose to ¥10.9 billion from ¥7.3 billion in 2014 while total revenues increased to ¥11.5 billion from ¥7.8 billion in 2014. On an adjusted basis, earnings per share and earnings per ADS amounted to ¥70.41 and ¥8.80 respectively in 2015. The results were propelled by growing demand for ticket booking among Chinese people.
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