Ctrip subsidized unsubscribed users for a loss of 1.2 billion yuan this quarter.

On May 29th, Beijing time, Ctrip Group announced its financial results for the first quarter of 2020.

The financial report shows that Ctrip ’s first quarter net operating income was 4.7 billion yuan (the following units are all “RMB”), a year-on-year decrease of 42%, < strong style = "letter-spacing: 0px;"> 4.097 billion yuan higher than Bloomberg consensus expectations . In the last quarter’s financial report, Ctrip expected that due to the epidemic, Ctrip’s revenue in the first quarter of 2020 will decline by 45% -50% year-on-year; In comparison , Ctrip ’s revenue growth in the four quarters of 2019 was 21%, 19%, 12% and 10%, respectively.

Ctrip ’s first quarter attributed to Ctrip ’s shareholders net loss is 54 100 million yuan, From profit to loss ; comparison Net profit for the same period last year was 4.613 billion yuan, Last quarter net profit was 2 billion yuan. Loss mainly from the operating losses and equity related to the impact of the new crown epidemic Loss of changes in fair value of available-for-sale financial assets, long-term impairment of investments, and losses from other investment activities.

Excluding equity compensation expenses and fair value changes in profit and loss of available-for-sale financial assets, Ctrip ’s first-quarter net loss was 2.2 billion yuan, which was the same as Bloomberg ’s expected 2.205 billion yuan net loss. ; Compared with the same period last year, net profit was 1.8 billion yuan, compared with 1.2 billion yuan in the previous quarter.

The operating loss for the first quarter was 1.5 billion yuan. Excluding equity compensation expenses, the operating loss for the first quarter of 2020 was 1.2 billion yuan— This means that Ctrip will subsidize unsubscribed users ’losses this quarter, The profit was 1.2 billion yuan.

Liang Jianzhang, executive chairman of Ctrip’s board of directors, said in the financial report that the new crown epidemic has posed a major challenge to the global tourism industry. Up to now, many markets operated by Ctrip have seen signs that travel activities have stabilized or recovered; After bottoming out in February, it has maintained a stable recovery trend since then; in recent weeks, due to Ctrip’s timely product innovations in response to the new demand of the epidemic, High Star Hotel’s recovery has significantly surpassed other businesses.

Ctrip ’s business is mainly divided into accommodation booking, transportation ticketing, tourism and vacation and business travel management. The performance of these four major businesses in the first quarter were:

  • Accommodation booking income 1.2 billion yuan, a year-on-year decrease < span style = "letter-spacing: 0px;"> 62%, down 61% month-on-month;
     

  • Transport ticketing revenue 2.4 billion yuan, a year-on-year decrease < span style = "letter-spacing: 0px; "> 29%, down 31% month-on-month;
     

  • Tourism and vacation business income 523 million yuan, a year-on-year decrease of 50%, month-on-month Down 35%;
     

  • Business Travel Management Business Revenue 126 million yuan, a year-on-year decrease of 47% and a month-on-month decrease of 66%.

    Due to the severe negative impact of the new crown epidemic, Ctrip booking cancellation orders increased and new orders decreased. The impact also includes the increase in bad debt reserves and long-term investment impairment. In response to the decline in user demand caused by the epidemic, Ctrip quickly adopted cost control measures. In the first quarter of 2020, total costs and expenses decreased by 14% year-on-year; excluding the effects of bad debt provisions, total costs and expenses in the first quarter of 2020 decreased by 31% year-on-year.

    In April 2020, Ctrip Group, as a borrower, signed a credit agreement with a financial institution. The agreement includes USD 1 billion in revolving credit and an additional USD 500 million Increment amount. Ctrip has successfully completed a $ 1 billion loan from this credit agreement in May.

    As of press time, Ctrip ’s after-hours stock price reported US $ 24.46, a decrease of 3.47%.

    Ctrip’s board chairman Liang Jianzhang once said in an exclusive interview, This is the “most lost year, or at least a quarter” since Ctrip’s establishment; but Ctrip’s long-term business direction is not too big Adjustments will focus more on domestic travel in the short term.

    At 8pm on March 23, Liang Jianzhang started the first live broadcast of his life at the Atlantis Hotel. Sanya City, Hainan Province was the first tourist site opened by Ctrip’s “Renewal V Plan” after the epidemic. At that time, the entire Sanya area had been transformed into a low-risk area. In this live broadcast, Liang Jianzhang sold a total of 10 million yuan worth of tourism products. Subsequently, Liang Jianzhang also launched 5 live broadcasts. 6 live broadcasts brought 100 million in total.

    Before the release of Ctrip ’s financial report, CICC stated that due to the fermentation of overseas epidemic situation at the end of February, Ctrip ’s second quarter revenue decline may exceed that of the first quarter. It is estimated that Ctrip’s overseas business revenue accounts for about 35% -40%. CICC expects that Ctrip’s revenue in the second quarter will fall by 64% year-on-year, but benefiting from effective cost control, Ctrip’s operating loss under the non-general guidelines in the second quarter will be controlled at 1.7 billion yuan.

    Due to the continued negative impact caused by the new crown epidemic, Ctrip Group expects net operating income to fall by 67% -77% year-on-year in the second quarter of 2020.