China's Universal Travel Group, which operates through its wholly owned subsidiary, air travel agency Shenzhen Yu Zhi Lu Aviation Service Company Ltd, said its net income for the second quarter of 2007 increased approximately 230 pct from a year ago to 1.65 mln usd, or 0.05 usd per share.

The company said this was due to a decrease in stock-based compensation expenses as well as operational cost reductions.

Net income also increased 152 pct from 654,000 usd in the first quarter of 2007.

The firm reported record revenue of 7.02 mln usd, an increase of approximately 657 pct from the same quarter in 2006, due to the acquisition of Speedy Dragon and an increase in the customer base of the pre-existing business.

For the first half of 2007, net income was 2.31 mln usd, or approximately 0.07 usd per share, while revenue was 13.99 mln usd, compared with a net income of 961,000 usd and revenue of 1.69 mln usd for the same period a year ago.

Universal Travel said it was revising its previously announced guidance upwards to a net income of 8.2-8.5 mln usd, or 0.23-0.24 usd earnings per share for 2007, representing an increase of 222-233 pct from the year before.

It now expects 2007 revenue in the range of 35-36 mln usd, up 250-260 pct from the year before.

The company did not provide its previous guidance figures.