Categories: Social Media News

Tencent Buys Online Travel Stake In eLong.com

Chinese online travel service provider eLong Inc. reported its unaudited financial results for the first quarter ended March 31, 2011, and said Tencent made a strategic investment in the company.

Chinese online gaming and instant messaging firm Tencent Holding Limited yesterday made a strategic investment in eLong, acquiring approximately 11 million newly-issued shares for USD84 million. The strategic investment in eLong represents the first significant investment in the travel market by Tencent.

On the same day, Expedia, eLong.com’s controlling shareholder, purchased 5.4 million newly-issued shares for USD41 million. eLong says it intends to use the proceeds from the sale of the newly-issued shares for acquisitions, business development, working capital and other general company purposes.

“Tencent is focused on creating value for our users, and we believe this partnership will bring our users innovative and quality services that combine our community leadership and marketing know-how with eLong’s online travel expertise and unmatched supply portfolio. Through the implementation of open platform, we will continue to enhance our service offering to users by exploring the synergies between their online activities and offline lifestyle,” said Martin Lau Chi-ping, president of Tencent Holdings Ltd.

Net revenues for eLong for the first quarter increased 23% to CNY124.5 million, compared to CNY101.1 million in the first quarter of 2010. Net income for the first quarter increased 30% to CNY7.7 million, compared to CNY5.9 million in the first quarter of 2010.

Hotel room nights booked through eLong in the first quarter increased 41% to 1.7 million room nights compared to 1.2 million in the prior year period.

Income from operations for the first quarter increased 111% to CNY13.2 million, compared to CNY6.3 million in the prior year period. Operating margin was 10.6% compared to 6.2% in the first quarter of 2010.

Social Media Asia Editor

Recent News

TV channel, live stream details and kick-off timeTV channel, live stream details and kick-off time

TV channel, live stream details and kick-off time

Liverpool will take on AC Milan this weekend in their third pre-season friendly of the…

22 hours ago
US consumers will pay price for tariff hike, warns top Swiss traderUS consumers will pay price for tariff hike, warns top Swiss trader

US consumers will pay price for tariff hike, warns top Swiss trader

Sébastien Landerretche, president of the Swiss Commodity Trading Association, SUISSENÉGOCE. Vera Leysinger / Swissinfo.ch Listen…

22 hours ago
Newcastle stance, Eddie Howe update, wage demandsNewcastle stance, Eddie Howe update, wage demands

Newcastle stance, Eddie Howe update, wage demands

Liverpool want Alexander Isak, but Newcastle United insist the striker is not for sale this…

23 hours ago
Every third smartphone US imports is now made in India as China’s share declinesEvery third smartphone US imports is now made in India as China’s share declines

Every third smartphone US imports is now made in India as China’s share declines

Driven primarily by Apple iPhones, India now accounts for one in every three smartphones imported…

23 hours ago
India is ‘most trusted partner’, says Maldivian President Mohamed MuizzuIndia is ‘most trusted partner’, says Maldivian President Mohamed Muizzu

India is ‘most trusted partner’, says Maldivian President Mohamed Muizzu

Prime Minister Narendra Modi with Maldivian President Mohamed Muizzu. | Narendra Modi, @narendramodi/X India is…

24 hours ago
Hong Kong police issue arrest warrants for foreign nationals including Australian citizen Feng ChongyiHong Kong police issue arrest warrants for foreign nationals including Australian citizen Feng Chongyi

Hong Kong police issue arrest warrants for foreign nationals including Australian citizen Feng Chongyi

An Australian man has discovered he is wanted by Hong Kong authorities via messaging platform…

24 hours ago