Replies to post #84271 on China Growth Stocks

[viking86]

UTA: alive and kicking.

Glad to see they grew revenue by 65% yoy, with more than 1/3 of rev coming from the 5 acquisitions they made last year. These are expected to grow rev 3x faster than the pre-existing business (20% vs. 6.5%). Also, as you mentioned, nice to see them spend over $230K on direct advertizing on websites to drive their business in China, where they have a stronghold westside of the metropolitan East coast.


Revenues for the three months ended March 31, 2011 were $33,795,493, compared to $20,425,779 for the same period in 2010, an increase of $13,369,714, or approximately 65.46%. The contributions from the five newly acquired subsidiaries were $12,045,475, or 35.64% of our total revenues for this quarter. We expect the revenue contributions from the five newly acquired subsidiaries will grow at 20% or higher as they are required by acquisition agreements, and they are likely to benefit from larger foundation and integration with Air-ticketing and Hotel reservation segments. Excluding the contributions from the five newly acquired subsidiaries, revenues for the three months ended March 31, 2011 were $21,750,018, compared to $20,425,779 for the same period in 2010, an increase of $1,324,239 or approximately 6.48%.

The acquisition of the five subsidiaries in 2010 was primarily due to our efforts to expand our businesses, especially the packaged tour business, along with the strong demand for travel as a result of the recovery of Chinese economy, and the continuing effect of the Chinese government’s stimulus package, benefiting the whole industry. The high growth rate is also helped by well-developed Chongqing Travel World E-Business Co., Ltd. compared to same period last year, which was newly incorporated at the late of 2009 with lower revenue in the first quarter of 2010. We continue to see success in cross marketing and selling our travel related products across our business segments and increased brand awareness from online and offline sales.

To promote our businesses, especially air ticketing, we spent $234,352 on advertisements on popular Chinese websites in the first quarter of 2011, while we did not incur so much for the same quarter last year. The increased salary expense and commission are due to the increased split on commissions to large retail agencies and an increase in the number of new hires including employees from our five new acquisitions.