Chinese online travel provider eLong Inc. reported its unaudited financial results for the second quarter ended June 30, 2010, and stated its net revenues increased 45% to CNY118.9 million, compared to CNY81.9 million in the second quarter of 2009.

"In the second quarter, strong online hotel growth, increasing average selling prices and improving operating efficiencies allowed us to deliver record net revenues and record income from operations," said Mike Doyle, chief financial officer of eLong.

However, net income for the second quarter of 2010 was CNY9.4 million, dropping from net income of CNY9.5 million during the prior year quarter.

Hotel commission revenue gained via the company's services, including eLong.com, increased 44% for the second quarter of 2010 compared to the prior year quarter, primarily due to higher volume, which was partially offset by lower commission per room night. Air ticketing commission revenue increased 40% for the second quarter of 2010 compared to the prior year quarter, driven by a 16% increase in air segments to 591,000 and an increase in commission per segment.

Other revenue, online online advertising, increased 78% year-on-year for the second quarter of 2010.

Gross margin in the second quarter of 2010 was 72% compared to 71% in the prior year quarter of 2009. Total operating expenses increased 34% for the second quarter of 2010 compared to the second quarter of 2009. Total operating expenses were 59% of net revenues, a decrease of 4% compared to the prior year quarter.

The company currently expects net revenues for the third quarter of 2010 to be within the range of CNY126 million to CNY136 million, equal to an increase of 30% to 40% compared to the third quarter of 2009.