UPDATE 2-China's Ctrip Q4 profit doubles, shares rise

(Recasts, adds background, changes dateline: pvs LOS ANGELES)

BEIJING/LOS ANGELES, Feb 28 (Reuters) - China's top online travel agent, Ctrip.com International Ltd (CTRP.O), said quarterly net profit doubled, beating expectations due to higher bookings and pushing its share price up in after-hours trade.

Ctrip.com, which is benefiting as a wealthier and expanding Chinese middle class spends more on travel, said it is growing faster than its competitors.

"We did increase market share in 2007," Chief Executive Min Fan told analysts on a conference call.

Events like the Beijing Olympic Games in August and the Shanghai World Expo in 2010 will give Ctrip opportunities to raise its profile, but contributions to the bottom line are difficult to forecast, executives said.

For full-year 2008, Ctrip said it expects to continue year-on-year net revenue growth of around 35 percent.

Shanghai-based Ctrip said fourth-quarter earnings doubled to $18.6 million, or 27 cents per American Depositary Share, easily beating the $14.8 million profit analysts had forecast.

Fourth-quarter net revenue rose 58 percent to $49 million, as hotel reservations, flight bookings and package tours all posted strong growth, the company said.

Ctrip had forecast year-on-year net revenue growth of about 35 percent for the fourth quarter, but the firm has a history of publishing conservative forecasts.

Full-year 2007 profit rose 66 percent to $55 million.

The firm's Nasdaq-listed shares closed 4.8 percent lower at $54.65 prior to the earnings, but reversed in after-hours trade to add as much as 8 percent.

The stock has gained more than 80 percent in the past 12 months, while domestic rival eLong Inc (LONG.O), majority-owned by U.S. online travel company Expedia Inc (EXPE.O), has lost more than a quarter of its share value.

To help meet rising demand, Ctrip plans to spend $40-$50 million on a second call centre near Shanghai, to complement the 3,500 employees at its first centre.

In 2006, 1.4 billion domestic trips by Chinese tourists generated $85 billion, up 17 percent from 2005, according to official data. Growth last year continued at a similar pace.

China's business travel market is worth about $10 billion, the world's fourth biggest, according to American Express. ($=7.12 yuan) (Reporting by Kirby Chien and Deena Beasley; Editing by Ken Wills and Lincoln Feast)