Ctrip Continues Growing Though Its Bottom Line Remained Dampened Due To Investments

CTRP: Ctrip logo
CTRP
Ctrip

Ctrip released its Q2 2016 results on August 31st. On the domestic front, Ctrip continues making profit through its high end hotel rooms while it uses the funds to subsidize the rates for the low and medium budget hotels. Ctrip’s stake at Qunar is helping the company in providing an entire gamut of hotel rooms along with consolidating the Chinese OTA market. Currently, the company might be looking for opportunities to expand globally, especially to geographies such as the U.S. For Q2 2016, Ctrip’s net loss amounted to $78 million as compared to a net income of $23 million in Q2 2015. Ctrip’s investments into its acquired entities was one of the reasons for the bottomline erosion. Ctrip’s focus currently is on the Chinese outbound travelers and it aims to expand the international products and services to target more travelers.

ctrp q22016

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Ctrip

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