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ELong Q2 profit up, business outlook positive

August 21, 2012 | Online Travel

The company reported a net income for the second quarter of 2012 of RMB16.0 million, compared to RMB7.1 million during the prior year quarter. Room nights booked through eLong in the second quarter increased 65% year-on-year to 3.7 million.

eLong, Inc. (Nasdaq: LONG), a leading online travel service provider in China, today reported unaudited financial results for the second quarter ended June 30, 2012.

Highlights

- Hotel room nights booked through eLong in the second quarter increased 65% to 3.7 million room nights compared to 2.2 million in the prior year period. Online hotel bookings comprised 72% of total hotel bookings, compared to 55% in the second quarter of 2011.

- Hotel commission revenue for the second quarter increased 47% to RMB153.8 million (US$24.2 million), compared to RMB104.6 million (US$16.2 million) in the second quarter of 2011.

- Net revenues for the second quarter increased 33% to RMB185.0 million (US$29.1 million), compared to RMB139.1 million (US$21.5 million) in the second quarter of 2011.

- Net income for the second quarter increased to RMB16.0 million (US$2.5 million), compared to RMB7.1 million (US$1.1 million) in the prior year period.

- Domestic hotel coverage network expanded 52% to over 32,000 domestic hotels as of June 30, 2012, compared to 21,000 as of June 30, 2011. In addition, eLong offers almost 155,000 international hotels through a direct connection to Expedia.

"In the second quarter, eLong delivered a record high number of hotel room nights, was the clear leader in hotel groupbuy, and continued to gain market share in the hotel booking segment," said Guangfu Cui, Chief Executive Officer of eLong. "In the third quarter, we have launched our largest-ever marketing campaign to drive awareness of our brand, innovative products and services."

Hotel commission revenue increased 47% in the second quarter of 2012 compared to the same period in 2011, primarily due to higher volume, partially offset by lower commission per room night. Room nights booked through eLong in the second quarter increased 65% year-on-year to 3.7 million. Commission per room night decreased 11% year-on-year, primarily due to the growth of groupbuy and lower average daily rate hotel room nights. Hotel commission revenue grew to 78% of total revenues from 70% in the prior year quarter.

eLong currently expects net revenues for the third quarter of 2012 to increase by 10% to 20% compared to the third quarter of 2011. This outlook reflects eLong's current and preliminary view, which is subject to change.

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