eLong witnesses its first profitable year since 2006

Mar 4, 2010

Online travel company eLong’s net income in the fourth quarter was RMB1.0 million compared to net loss of RMB8.2 million in the prior year period.

Published: 04 Mar 2010

Online travel company eLong’s net income in the fourth quarter was RMB1.0 million compared to net loss of RMB8.2 million in the prior year period.

Net revenues increased 18 percent year-on-year to RMB100.9 million.

“In the fourth quarter, we were able to achieve revenue growth of 18% year-on-year. This allowed us to deliver a profitable quarter and eLong’s first profitable full year since 2006,” said Mike Doyle, chief financial officer of eLong.

The China State Council has made the travel industry a priority sector of the Chinese economy. The company believes this will work in its favour, bringing in new opportunities for eLong.

“Starting in 2010, we have quickened the pace of our product and service expansion and upgrades,” said Guangfu Cui, CEO of eLong.

eLong launched dynamic packages, has now contracted more than 10,000 domestic hotels and also offers over 100,000 hotels worldwide by connecting to Expedia, making eLong the largest online distributor in China in terms of hotels offered.

“And we upgraded our online international air booking technology in order to make booking international tickets on eLong as easy as booking domestic tickets,” Cui said.

Net income for full year 2009 was RMB19.9 million, compared to net loss of RMB76.6 million in 2008.

eLong currently expects net revenues for the first quarter of 2010 to be within the range of RMB86 million to RMB93 million, equal to an increase of 10-20 percent compared to the first quarter of 2009.