Beijing News Shell Finance News (Reporter Wang Zhenzhen) On November 21, Ctrip Group (hereinafter referred to as "Ctrip") announced its unaudited financial performance for the third quarter as of September 30, 2023. During the period, Ctrip's net operating income was 13.7 billion yuan, a year-on-year increase of 99%; The net profit was 4.6 billion yuan, compared to 245 million yuan in the same period of 2022.
Ctrip stated that in the third quarter, thanks to the arrival of the summer tourism peak season, the number of travel bookings continued to increase, prompting the company's performance to continue to significantly recover. Among them, the revenue from accommodation booking was 5.6 billion yuan, a year-on-year increase of 92%; The revenue from transportation ticketing was 5.4 billion yuan, a year-on-year increase of 105%; The revenue from tourism and vacation business was 1.3 billion yuan, a year-on-year increase of 243%; The revenue from business travel management business was 591 million yuan, a year-on-year increase of 60%.
The domestic market has entered a stage of stable growth. In the third quarter, Ctrip's domestic hotel booking volume increased by over 90% year-on-year, with a growth of over 70% compared to the same period in 2019. The recovery of outbound tourism is significant. Although the cross-border air passenger volume during the period only recovered to around 50% of the same period in 2019, Ctrip's outbound hotel and flight booking volume has recovered to around 80% of the same period in 2019. The global tourism market prospects are improving, and Ctrip's international business continues to maintain strong momentum. In the third quarter, the total bookings of Ctrip International OTA platform increased by over 100% compared to the same period last year and 2019.
In the process of strong performance recovery, Ctrip has further strengthened its globalization strategy by continuously developing its inbound and outbound tourism business. In terms of inbound tourism, Ctrip has signed a strategic framework agreement with the China Association for Foreign Cultural Exchange to promote the national tourism image of "Hello! China"; Establishing an inbound tourism service platform; Jointly launch the inbound tourism cooperation alliance initiative with enterprises such as China Travel Service and Ant Group. According to reports, Ctrip's inbound travel orders increased by 34% month on month in the third quarter of this year.
In addition, the financial report shows that Ctrip's operating costs in the third quarter increased by 94% year-on-year to 2.5 billion yuan, product research and development expenses increased by 44% year-on-year to 3.6 billion yuan, sales and marketing expenses increased by 93% year-on-year to 2.8 billion yuan, and general and administrative expenses increased by 22% year-on-year to 1 billion yuan.
As of September 30, 2023, the balance of Ctrip cash and cash equivalents, restricted cash, short-term investments, held-to-maturity investments, and long-term financial products was 79 billion yuan.
In addition, Ctrip disclosed in its financial report that since September 2023, the company has purchased approximately 3.6 million American depositary shares for a total consideration of approximately $120 million under its existing stock repurchase plan. The board of directors of Ctrip has recently passed a regular capital return policy. Starting from 2024, the company will independently decide to benefit its shareholders and holders of American depositary receipts through annual stock repurchases, annual cash dividend announcements, or a combination of both. The method, timing, and amount of capital return will be determined based on the company's annual financial status, operating performance, cash flow, capital requirements, and other relevant circumstances.