Ctrip.com International CEO Discusses Q3 2010 Results - Earnings Call Transcript
Ctrip.com International, Ltd. (
)
Q3 2010 Earnings Conference Call
November 2, 2010 9:00 PM ET
Executives
June Zhu – IR
Min Fan – President and CEO
James Liang – Chairman
Jane Sun – CFO
Analysts
Richard Ji – Morgan Stanley
Chenyi Lu – Cowen and Company
James Lee – CLSA
Catherine Leung – Goldman Sachs
Mike Olson – Piper Jaffray
Chris Zee – BNP
Jin Yu – CICC
Wendy Huang – Royal Bank of Scotland
Eddie Leung – Bank of America/Merrill Lynch
Eric Wen – Mirae Asset Securities
Alex Yao – Deutsche Bank
Ming Zhao – SIG
Muzhi Li – Mizuho Securities
James Mitchell – Goldman Sachs
Candy Huang – Nomura Securities
Dick Wei – JP Morgan
Sam Lawn – Oppenheimer
Aaron Kessler – ThinkEquity
Fawne Jiang – Brean Murray
Wendy Huang – Royal Bank of Scotland
Presentation
Operator
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Ctrip.com Q3 2009 Earnings Call Transcript
Good day, ladies and gentlemen. And welcome to the Third Quarter 2010 Ctrip.com International Ltd Earnings Conference Call. At this time all participants are in listen-only. Later we will conduct a question-and-answer session. (Operator Instructions)
As a reminder this conference is being recorded for replay purposes. I’d like to turn the conference over to your host for today Ms. June Zhu. Please proceed.
June Zhu
Thank Shania and thank you everyone for attending Ctrip’s third quarter 2010 earnings conference call. Joining me on the call today we have Mr. James Liang, Chairman of the Board, Mr. Min Fan, President and Chief Executive Officer and Ms. Jane Sun, Chief Financial Officer.
We may during this call discuss our future outlook and performance which are forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in Ctrip’s public filings with the Securities and Exchange Commission. Ctrip does not undertake any obligation to update any forward-looking statements, except as required under applicable law.
Min, James and Jane will provide business update, industry outlook and financial highlights for the third quarter of 2010, as well as the outlook for the fourth quarter of 2010. We will also have a Q&A session towards the end of this call.
With that I will turn to Min for our business update, please.
Min Fan
Thanks, June and thank you to everyone for joining us today on the call. As we celebrate Ctrip’s 11th anniversary, we are pleased to report that our team once again delivered strong results in the third quarter of 2010. Our net revenues grew 49% year-over-year and net income grew 70% year-over-year.
We are pleased to note that 2010 Shanghai World Expo was a big success that propelled tourism nationwide. Our team captured opportunities to provide excellent service. It helps our brand and grow our market share. Our hotel supply network continues to expand to satisfy the growing needs of our customers, with 13,700 hotels by the end of the third quarter of 2010 compared to 9,400 hotels at the same time last year. The number of hotels will guarantee a lot more rooms further increased and accounted for more than 75% of the total hotel supply.
During the third quarter, our air ticketing volume grew at a strong pace, impart by the incomparable (inaudible) capacity the Ctrip team delivered strong results and extend our market share. As household income increases, consumer confidence becomes stronger. As a result, revenue from our packages has increased significantly in the third quarter. Our leisure travel network has been expanding rapidly. Intense products encourage more customers in the great China region to travel both within China and along the world.
Corporate travel has been strengthening its branding. During the third quarter and for the second year alone Ctrip was named the best corporate travel agent in China by Travel Weekly China. Two weeks ago Ctrip launched its updated CTMS, Corporate Travel Management System. This innovative system enables our corporate clients to obtain competitive prices and to locate their employees during emergencies, supported by wider coverage and comprehensive services, Ctrip’s Corporate Travel management team is able to provide high quality and reliability to our corporate clients.
With a concentrated and energetic effort Ctrip’s IT team has continued to bring innovation to our online and mobile platforms. Ctrip has officially released the current version for iPhone, Google Android and Nokia Symbian after successful launch of the wireless mobile website. These wireless platforms will enable our customers to make reservations more convenient. Our ongoing investment in online and offline platforms extend our leadership in the market.
According to a DoubleClick Ad Planner, Ctrip.com was the most visited travel website in China during the third quarter, listed as one of the leading travel portals in the world and number one in China. Ctirp is undisputed leader in the China’s online travel market. The Ctrip service team strives to improve customer service and to provide the best solutions to our customers.
In 2010 our call center once again, won the China and Asia Pacific Call Centre Award, that call center award issued by CCA, China Call Centre and CRM Association. This made Ctrip call center fourth time repeat winner. Awarding the owner, Ctrip’s call center was also rewarded the Golden Headset Award for the best contact center in China for fourth straight year. We believe the high quality of our services is a key to our ongoing success. We aim to continuously improve our service level and thereby maintain competitiveness and steady growth over the long-term.
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