Online travel firm Ctrip.com's (CTRP) results for the third quarter ended September 30, 2005 show net revenues were CNY140.5 million in the third quarter of 2005, up 55% year-on-year.

For the third quarter of 2005, Ctrip reported total revenues of CNY150.3 million, representing a 56% increase from the same period in 2004 and a 9% increase from the second quarter of 2005.

Hotel reservation revenues totaled CNY96.2 million for the third quarter of 2005, representing a 29% increase from the same period in 2004 and a 4% increase from the second quarter of 2005, primarily as a result of the steady growth in hotel room nights sales volume.

The total number of hotel room nights booked was approximately 1.44 million in the third quarter of 2005, compared to approximately 1.13 million room nights for the same period in 2004 and approximately 1.39 million room nights in the second quarter of 2005.

Ctrip's air ticket booking revenues for the third quarter of 2005 were CNY46.0 million, representing a 160% increase from the same period in 2004 and a 25% increase from the second quarter of 2005, primarily due to a strong growth of air tickets sales volume.

The total number of air tickets sold in the third quarter of 2005 was approximately 1.02 million air tickets, compared to approximately 490,000 for the same period in 2004 and approximately 800,000 in the second quarter of 2005.

Packaged-tour revenues for the third quarter of 2005 were CNY6.5 million, up 120% from the same period in 2004 and 13% from the second quarter of 2005.

For the third quarter of 2005, net revenues were CNY140.5 million, a 55% increase from the same period in 2004 and a 9% increase from the second quarter of 2005.

The gross margin decreased slightly to 83% in the third quarter of 2005 from 86% for the same period in 2004 and 85% in the second quarter of 2005. This decrease was largely due to higher cost of services as a result of increased revenue contribution from air ticketing services.

Sales and marketing expenses for the third quarter of 2005 increased by 61% to CNY29.5 million from the same period in 2004, primarily due to increased expenses associated with our customer reward program and hiring of new sales and marketing staff, as well as increased advertisement expenses. Sales and marketing expenses increased by 8% from the second quarter of 2005.

Product development expenses for the third quarter of 2005 increased by 45% to CNY13.9 million from the same period in 2004, primarily as a result of the hiring of additional staff to expand our travel supplier network. Product development expenses remained mostly flat compared to the second quarter of 2005

General and administrative expenses for the third quarter of 2005 increased by 17% to CNY10.2 million from the same period in 2004, primarily due to the hiring of additional staff. General and administrative expenses remained mostly flat compared to the second quarter of 2005.

Total operating expenses for the third quarter of 2005 were CNY54.1 million, an increase of 45% from the same period in 2004 and 4% from the second quarter of 2005. Total operating expenses as a percentage of net revenues in the third quarter of 2005 decreased to 39%, compared to 41% in the same period in 2004 and 40% in the second quarter of 2005.

Operating income for the third quarter of 2005 was CNY62.4 million, an increase of 52% from the same period in 2004 and 9% from the second quarter of 2005, respectively.

Operating margin remained mostly flat at 44% compared to the second quarter of 2005, but decreased slightly from 45% in the same period in 2004.

Net income for the third quarter of 2005 was CNY65.5 million, representing a 71% increase from the same period in 2004 mainly due to higher income from operations in addition to increased interest income, substantial other income as a result of higher financial subsidies received, accompanied by a more favorable tax rate.

Net margin reached a record 47% in the third quarter of 2005, up from 42% for the same period in 2004 and 44% in the second quarter of 2005.

Cash flow from operating activities was CNY75.4 million in the third quarter of 2005, compared to CNY56.7 million in the same period of 2004 and CNY57.4 million in the second quarter of 2005. As of September 30, 2005, the cash balance increased to CNY665.3 million, compared to CNY642.9 million as of June 30, 2005.

For the fourth quarter of 2005, Ctrip expects to continue strong year-on- year net revenue growth of approximately 40%.