Ctrip Stock Drops 2% on Headwinds in Hong Kong, Taiwan Markets
The stock in Ctrip.com International Ltd. (Nasdaq: CTRP) dropped 2 percent, to $34.42 per share on Tuesday, despite beating analysts' expectations for the second quarter.
Ctrip said in a statement on Monday evening that its revenue in the three months through June reached $1.3 billion, up 19 percent year-over-year. Net loss was $59 million, or 11 cents per American depositary share, in contrast to a net income of $360 million, or 59 cents per ADS, a year ago.
Ctrip attributed the revenue gains to the increase in sales of accommodation reservations, transportation ticketing and package tours in the second quarter. It attributed the high losses to the fair value changes in equity securities investments, at a loss of $182.7 million.
Accommodation revenue reached $497 million, up 21 percent, transportation ticketing revenue reached $496 million, up 13 percent, and packaged-tour revenue reached $153 million, up 25 percent year-over-year, according to the report.
Ctrip also announced on Monday that it proposed to change its name to Trip.com Group Ltd., as Jane Sun, the chief executive officer of the company said the new name would better reflect the services and products it offers, and can also be remembered easily by users globally.
The Shanghai-based company provides online travel and related services through a number of mobile platforms. In addition to accommodation reservation, transportation ticketing and package tours, Ctrip provides in-destination services and corporate travel management.
Ctrip also operates an overseas ridehailing business that includes 24-hour customer service, online payments and translation service to help Chinese tourists communicate with local drivers.
Jane Sun, the chief executive officer of Ctrip, said short-term macro uncertainties and industry headwinds have negatively impacted its business. The company was impacted by the slowdown of tourism to Hong Kong and Taiwan, which has also affected the third quarter, she said in a conference call.
Ctrip said it expects to see revenue increase between 10 and 15 percent from the same period last year in the third quarter.
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