Ctrip Q2 2016 Earnings Preview

Ctrip is slated to release its Q2 2016 earnings results on August 31st. Ctrip’s revenues grew by ~70% Y-o-Y in the first quarter primarily because of the consolidation of Qunar’s financial results starting from December 31, 2015. Last year, Ctrip consolidated its position in China’s OTA market by buying over 40% shares in each of its rivals Qunar and eLong. Ctrip and Qunar currently control around 80% of China’s online hotel and air ticketing market share. This has led to the decline of the discounting and couponing trend in the Chinese online travel market which has also resulted in Ctrip’s healthy bottom line recovery. After becoming the second largest OTA in terms of market capitalization ($21 billion)  post its consolidation efforts, the company seems to be contemplating an expansion in the international markets, most notably the U.S. Earlier this year, it has made investments of $180 million in India’s largest OTA, MakeMyTrip, and has gained the option to own up to a 26.6% stake in the company. Ctrip’s consolidation efforts and aggressive growth plans seem to be working in its favor. We expect Ctrip’s second quarter to also follow the strong growth trend of Q1 2016.

Have more questions about Ctrip? See the links below.

• What Is Ctrip’s Revenue And EBITDA Breakdown?
• How Has Ctrip’s Revenue And EBITDA Composition Changed Over 2012-2016E?
• Ctrip Q4 2015 Pre-Earnings Report
• What Drove Ctrip’s Revenue Growth And Led To Its EBITDA Decline Over The Last Five Years?
• Ctrip: Year 2015 In Review
• Ctrip Q1 2016 Earnings Preview
• Where Can Ctrip’s Growth Come From In The Next 5 Years?
• Which Two Segments Are The Biggest Contributors To Ctrip’s Growth?
• How Fast Is Ctrip’s Hotel Revenue Growing?
• How Can Ctrip’s Expansion In Geographies Like The U.S. Impact Its Share Price?
• How Did The Brexit Decision Impact Ctrip So Far?

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