Art dragon net profit to drop 70% to go back together


every reporter Xia Bing from Shanghai

yesterday (May 14th), "daily economic news" reporter learned, eLong (NASDAQ:LONG) released 2013 unaudited earnings in the first quarter, eLong first quarter net revenues of 217 million 400 thousand yuan, an increase of 42%; net profit of 2 million 800 thousand yuan, 11 million 900 thousand yuan last year fell 77%.

eLong CEO Cui Guangfu said in the interpretation of earnings, the decline in net profit for the quarter was due to the promotion of brands and wireless, as well as the impact on the profitability of the group buying business. Recent negotiations with where to go there has been a qualitative change, and where to restart cooperation is ripe. Elong look forward to cooperation with where to start again.

reporter also noted that elong where the capital injection has also returned to where the network platform.

Cui Guangfu said mobile investment bubble free /

results show that: a quarter of elong hotel bookings grew 71%, continue to expand the hotel market share; mobile phone client cumulative downloaded about 10 million times, through the mobile equipment booking accounted for more than 15% of total hotel reservation, expected elong wireless will soon exceed the call center, has become the second largest booking channel.

it is worth noting that the investment from the mobile sector dragged down the quarterly profit margin is an indisputable fact. Cui Guangfu explained: "there are several reasons, first is that we increase the brand marketing investment; second is our online marketing continue to increase investment; third is the mobile terminal advertising, including download market channels. In fact, compared with the same period last year, profit rose in the first quarter."

when asked whether there is a bubble in the mobile investment, said Cui Guangfu, eLong investment bubble does not exist, will continue to promote the client. Application downloads, the platform will be more accepted, and thus the formation of scale advantages.

U.S. investment company T.H.Capital yesterday released a report to maintain elong shares held rating. The agency believes that "driven by the ticket booking promotional activities, eLong first quarter results will be better than Wall Street expected. Although the investment in the mobile sector is still affecting margins, we believe elong will continue to invest this year in order to win market share, especially in the mobile sector."

restart cooperation ripe /

in April this year, where to announce its Hotel CPC (pay per click) business charges rose 40%. Unable to bear such a large increase, with a substantial increase in CPC where the net price and strong push TTS (bidirectional traceability system) policy, in the same way network, eLong, mango, where as the core network and a number of major OTA (online travel agency) website "alliance" group in April 1st opt out of the hotel where the network platform.

and where to suspend cooperation >

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