Travel service provider Ctrip.com International observed a yoy 20% increase in net revenues which hit CNY833million (US$129 million) in the second quarter. Operating income was also up 4% on Q2 2010, to CNY268 million. However profitability was down yoy with the company operating margin dropping five percentage points to 32%. This was largely due to significant increases in expenses across the board. Product development cots were up 25%, administration expenses shot-up 37% and sales and marketing costs increased 33%. Moving into the thrd quarter, the Company expects continued net revenue growth at a rate of approximately 15-20%.
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