Question-and-Answer Session
Operator
Yes, thank you sir. (Operator Instructions). Our first question comes from the line of Ming Zhao calling from SIG. Please go ahead sir.
Ming Zhao - SIG
Thank you. Good morning Tom, Tony and Chris. I have a couple of questions. First question, on the air ticket pricing. You mentioned that there is a fierce competition, so your ASP from that has come down. But it seems like from your competitor's number, it's not the case. Can you comment on that please, and do you think in the Q1 or in the first half of '07 we are still going to see this trend?
Tom SooHoo
Ming, hi, this is Tom. There have been two effects in Q4 in terms of reduction, in terms of average rate on tickets. One of them is that we did make some changes to our product offering in international. And we focused our product group more on selected routes that brought down the average ticket price. But that wasn't the biggest effect, the biggest effect is indeed from our numbers that indicate that the average ticket price has come down and. I can't comment on the other competitors, but as from our research and indications in the market is that there is a significant supply increase starting in Q4 and recede through Q1, which has brought down average ticket prices.
Ming Zhao - SIG
Okay. The second question is, I heard this but I didn't get this. Tony, you mentioned the online dating website you sold to a related party. Did it happen in Q4 or Q1?
Tony Shen
Actually that happened in Q4 and then the accounting treatment is also included in our Q4 financial statements.
Ming Zhao - SIG
So is that the discontinued operation, you booked at a loss?
Tony Shen
Yes. The majority of the gain is actually recorded in the equity section, because of the common (inaudible) by the buyer and by the same ultimate owner. So the discontinued operation is only a portion of the loss and related onetime items, booked in that division.
Ming Zhao - SIG
Okay. So, let me understand it, so part of the change of course is reflecting on the balance sheet. And part of that on the P&L is in the total discontinued operations? Is that correct?
Tony Shen
Yes.
Ming Zhao - SIG
So actually you sold this for a loss in other words?
- To read the full transcript on Seeking Alpha, click here »
