Chinese online travel giant Ctrip.com has posted a significant drop in profits for the second quarter of 2012.
The company recorded net profits of CNY119.7 million (US$18.9m) for the three months ending 30 June – down from CNY263.7m in the same period last year.
The company’s revenues actually climbed 16.9% year-on-year to CNY973.6m, but product development, sales & marketing and administrative costs all spiraled, largely due to “personnel-related expenses”.
Despite the declining profits, Ctrip’s President & CEO Min Fan said he was “pleased with the solid results”.
“We continued to invest heavily on product developments, especially in leisure travel products and services. We also launched intensified marketing campaigns to reach out to new customers. We believe that our investment today will further enhance Ctrip’s market leadership in the long run,” Min said.
