BRIEF: TravelSky profit rises on cost controls, even as revenue drops
Aviation industry information provider TravelSky Technology Ltd. (0696.HK) on Friday reported its revenue fell 0.6% last year to 8.77 billion yuan ($1.27 billion), but its profit rose 12.9% to 2.34 billion yuan on lower operating expenses.
Revenue from the company’s core aviation information platform services rose 2% last year to 4.62 billion yuan, accounting for just over half of its total. The company also recorded year-on-year revenue gains for its aviation travel intelligent products and services, which accounted for 13% of its total last year; and for its accounting, settlement and clearing services, which accounted for about 10%. But those were offset by a 21% decline for its airport digitalization services, which was its second-biggest segment at 17% of revenue.
The company’s operating expenses for the year fell by 1.9% year-on-year to 6.33 billion yuan.
TravelSky’s shares were down 5.1% at HK$10.02 in mid-afternoon trade on Friday after the results came out. The stock is down about 10% over the last 52 weeks.
By Doug Young
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