eLong manages to stabilise the decline in growth rates
Published: 14 Nov 2007
Net income decreased RMB 10.1 million primarily due to current quarter sales and marketing expenses of RMB 36.9 million, which is RMB11.5 million more than the same quarter of prior year.
Travel revenues before business tax and surcharges comprised of hotel, air and other travel product and service revenues, increased 12% to RMB80.9 million for the third quarter 2007 compared with the prior year period.
According to the company, it recorded an operating loss of RMB 9.3 million for the third quarter, compared with an operating income of RMB1.7 million for the third quarter of 2006, primarily due to greater sales and marketing expense and consulting expenses partially offset by higher revenue.
"The third quarter was a mixed quarter for eLong. Revenue growth was in line with our expectations and we have, managed to stabilise the decline in growth rates. However, we believe that eLong is not yet executing to its full potential and we are working hard to change that. We are very happy with the appointment of Mr. Guangfu Cui as CEO of eLong and believe he will be instrumental in improving eLong's performance going forward," said Henrik Kjellberg, Chairman and former Interim Chief Executive, eLong.
eLong expects total net revenues for the fourth quarter of 2007 within the range of RMB73.0 million to RMB80.0 million, an increase of 12% to 22% from the fourth quarter of 2006.