Trip.com Group Limited Reports Unaudited Third Quarter of 2024 Financial Results

Rhea-AI Summary

Trip.com Group reported strong financial results for Q3 2024, with net revenue increasing 16% year-over-year to RMB15.9 billion (US$2.3 billion). Net income reached RMB6.8 billion (US$970 million), up from RMB4.6 billion in the same period of 2023. International business showed robust growth, with outbound hotel and air reservations reaching 120% of pre-COVID levels. The company's accommodation reservation revenue grew 22% to RMB6.8 billion, while transportation ticketing revenue increased 5% to RMB5.7 billion. Adjusted EBITDA improved to RMB5.7 billion (US$808 million) from RMB4.6 billion last year.

Positive

• Net income increased 48% YoY to RMB6.8 billion (US$970 million)
• Net revenue grew 16% YoY to RMB15.9 billion (US$2.3 billion)
• Outbound reservations exceeded pre-COVID levels by 20%
• Accommodation reservation revenue increased 22% YoY
• International OTA brand bookings grew over 60% YoY

Negative

• Sales and marketing expenses increased 23% YoY
• Product development expenses as percentage of revenue remained high at 23%

Insights

Financial Analyst

Trip.com Group delivered impressive Q3 2024 results with significant growth across all key metrics. Net revenue grew 16% YoY to RMB15.9 billion, while net income surged 48% YoY to RMB6.8 billion. The company's core segments showed robust performance - accommodation revenue up 22%, transportation ticketing up 5% and packaged tours up 17%.

International business recovery has been particularly strong, with outbound hotel and air reservations reaching 120% of pre-COVID levels. The company's healthy margins and strong cash position of RMB86.9 billion demonstrate excellent operational efficiency and financial stability. The expansion in adjusted EBITDA to RMB5.7 billion indicates improving profitability and operational leverage.

Market Research Analyst

The results reflect strong secular growth in China's travel market and Trip.com's expanding global footprint. The 60% YoY growth in international OTA bookings indicates successful market share gains in key overseas markets. The company's strategic focus on high-margin international business and premium travel segments is paying off through improved profitability metrics.

The healthy growth in corporate travel revenue (11% YoY) suggests increasing business travel demand. With rising consumer confidence and travel sentiment, coupled with the company's AI initiatives, Trip.com is well-positioned to capture further growth opportunities in both domestic and international markets.

SINGAPORE, Nov. 18, 2024 /PRNewswire/ -- Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) ("Trip.com Group" or the "Company"), a leading one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management, today announced its unaudited financial results for the third quarter of 2024.

Key Highlights for the Third Quarter of 2024

• International businesses experienced robust growth across all segments in the third quarter of 2024

-        Outbound hotel and air reservations rebounded to approximately 120% of the pre-COVID level for the same period in 2019. 
-        Air ticket and hotel reservations on the Company's international OTA brand increased by over 60% year-over-year.

• The Company delivered solid results in the third quarter of 2024

-        Net revenue for the third quarter grew by 16% year-over-year. 
-        Net income for the third quarter was RMB6.8 billion (US$970 million), compared to RMB4.6 billion for the same period in 2023. 
-        Adjusted EBITDA for the third quarter was RMB5.7 billion (US$808 million), improving from RMB4.6 billion for the same period last year.

"During the third quarter of 2024, both domestic and international travel exhibited robust growth," said James Liang, Executive Chairman. "With increasing consumer confidence and heightened travel sentiment, we are optimistic about the continued growth of the travel industry. Additionally, we are confident that the AI-driven technological revolution will play a pivotal role in shaping the future of the global travel industry."

"We are delighted to witness the resilience of the travel market. Through our hard work, we are proud to create new job opportunities for young people and bring new business volume to our partners in the travel industry," said Jane Sun, Chief Executive Officer. "Travel is a catalyst for economic growth, a bridge to understanding, and a pathway to a peaceful world. We will continue to offer excellent service, drive business for our partners, and introduce China to the world through travel." 

Third Quarter of 2024 Financial Results and Business Updates

For the third quarter of 2024, Trip.com Group reported net revenue of RMB15.9 billion (US$2.3 billion), representing a 16% increase from the same period in 2023, primarily driven by stronger travel demand. Net revenue for the third quarter of 2024 increased by 24% from the previous quarter, primarily due to seasonality.

Accommodation reservation revenue for the third quarter of 2024 was RMB6.8 billion (US$969 million), representing a 22% increase from the same period in 2023, primarily driven by an increase in accommodation reservations. Accommodation reservation revenue for the third quarter of 2024 increased by 32% from the previous quarter, primarily due to seasonality.

Transportation ticketing revenue for the third quarter of 2024 was RMB5.7 billion (US$805 million), representing a 5% increase from the same period in 2023 primarily driven by an increase in transportation reservations. Transportation ticketing revenue for the third quarter of 2024 increased by 16% from the previous quarter, primarily due to seasonality.

Packaged-tour revenue for the third quarter of 2024 was RMB1.6 billion (US$222 million), representing a 17% increase from the same period in 2023, primarily driven by an increase in packaged-tour reservations. Packaged-tour revenue for the third quarter of 2024 increased by 52% from the previous quarter, primarily due to seasonality.

Corporate travel revenue for the third quarter of 2024 was RMB656 million (US$93 million), representing an 11% increase from the same period in 2023, primarily driven by an increase in corporate travel reservations. Corporate travel revenue for the third quarter of 2024 increased by 4% from the previous quarter.

Cost of revenue for the third quarter of 2024 increased by 13% to RMB2.8 billion (US$399 million) from the same period in 2023 and increased by 21% from the previous quarter, which was generally in line with the increase in net revenue from the respective periods. Cost of revenue as a percentage of net revenue was 18% for the third quarter of 2024.

Product development expenses for the third quarter of 2024 increased by 2% to RMB3.6 billion (US$519 million) from the same period in 2023 and increased by 22% from the previous quarter, primarily due to an increase in product development personnel related expenses. Product development expenses as a percentage of net revenue was 23% for the third quarter of 2024.

Sales and marketing expenses for the third quarter of 2024 increased by 23% to RMB3.4 billion (US$482 million) from the same period in 2023 and increased by 19% from the previous quarter, primarily due to the increase in expenses relating to sales and marketing promotion activities. Sales and marketing expenses as a percentage of net revenue was 21% for the third quarter of 2024.

General and administrative expenses for the third quarter of 2024 increased by 2% to RMB1.0 billion (US$149 million) from the same period in 2023 and decreased by 3% from the previous quarter. General and administrative expenses as a percentage of net revenue was 7% for the third quarter of 2024.

Income tax expense for the third quarter of 2024 was RMB721 million (US$103 million), compared to RMB448 million for the same period in 2023 and RMB693 million for the previous quarter. The change in Trip.com Group's effective tax rate was primarily due to the combined impacts of changes in respective profitability of its subsidiaries with different tax rates, changes in deferred tax liabilities relating to withholding tax, certain non-taxable income or loss resulting from the fair value changes in equity securities investments and exchangeable senior notes recorded in other income/(expense), and changes in valuation allowance provided for deferred tax assets.

Net income for the third quarter of 2024 was RMB6.8 billion (US$970 million), compared to RMB4.6 billion for the same period in 2023 and RMB3.9 billion for the previous quarter. Adjusted EBITDA for the third quarter of 2024 was RMB5.7 billion (US$808 million), compared to RMB4.6 billion for the same period in 2023 and RMB4.4 billion for the previous quarter.

Net income attributable to Trip.com Group's shareholders for the third quarter of 2024 was RMB6.8 billion (US$962 million), compared to RMB4.6 billion for the same period in 2023 and RMB3.8 billion for the previous quarter. Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), and their tax effects, non-GAAP net income attributable to Trip.com Group's shareholders for the third quarter of 2024 was RMB6.0 billion (US$847 million), compared to RMB4.9 billion for the same period in 2023 and RMB5.0 billion for the previous quarter.

Diluted earnings per ordinary share and per ADS was RMB9.93 (US$1.42) for the third quarter of 2024. Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), and their tax effects, non-GAAP diluted earnings per ordinary share and per ADS was RMB8.75 (US$1.25) for the third quarter of 2024. Each ADS currently represents one ordinary share of the Company.

As of September 30, 2024, the balance of cash and cash equivalents, restricted cash, short-term investment, and held to maturity time deposit and financial products was RMB86.9 billion (US$12.4 billion).

Conference Call

Trip.com Group's management team will host a conference call at 7:00 PM on November 18, 2024, U.S. Eastern Time (or 8:00 AM on November 19, 2024, Hong Kong Time) following the announcement.

The conference call will be available live on Webcast and for replay at: https://investors.trip.com. The call will be archived for twelve months on our website.

All participants must pre-register to join this conference call using the Participant Registration link below:

https://register.vevent.com/register/BIacab26e628b84d85a1589994ea124dc9

Upon registration, each participant will receive details for this conference call, including dial-in numbers and a unique access PIN. To join the conference, please dial the number provided, enter your PIN, and you will join the conference instantly.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate," "is/are likely to," "confident," or other similar statements. Among other things, quotations from management in this press release, as well as Trip.com Group's strategic and operational plans, contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, severe or prolonged downturn in the global or Chinese economy, general declines or disruptions in the travel industry, volatility in the trading price of Trip.com Group's ADSs or shares, Trip.com Group's reliance on its relationships and contractual arrangements with travel suppliers and strategic alliances, failure to compete against new and existing competitors, failure to successfully manage current growth and potential future growth, risks associated with any strategic investments or acquisitions, seasonality in the travel industry in the relevant jurisdictions where Trip.com Group operates, failure to successfully develop Trip.com Group's existing or future business lines, damage to or failure of Trip.com Group's infrastructure and technology, loss of services of Trip.com Group's key executives, adverse changes in economic and business conditions in the relevant jurisdictions where Trip.com Group operates, any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Trip.com Group and other risks outlined in Trip.com Group's filings with the U.S. Securities and Exchange Commission or the Stock Exchange of Hong Kong Limited. All information provided in this press release and in the attachments is as of the date of the issuance, and Trip.com Group does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Trip.com Group's consolidated financial statements, which are prepared and presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Trip.com Group uses non-GAAP financial information related to adjusted net income attributable to Trip.com Group Limited, adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted earnings per ordinary share and per ADS, each of which is adjusted from the most comparable GAAP result to exclude the share-based compensation charges that are not tax deductible, fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), net of tax, and other applicable items. Trip.com Group's management believes the non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provide management with a better capability to plan and forecast future periods.

Non-GAAP information is not prepared in accordance with GAAP, does not have a standardized meaning under GAAP, and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for GAAP results. A limitation of using non-GAAP financial measures is that non-GAAP measures exclude share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), and their tax effects that have been and will continue to be significant recurring expenses in Trip.com Group's business for the foreseeable future.

Reconciliations of Trip.com Group's non-GAAP financial data to the most comparable GAAP data included in the consolidated statement of operations are included at the end of this press release.

About Trip.com Group Limited

Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) is a leading global one-stop travel platform, integrating a comprehensive suite of travel products and services and differentiated travel content. It is the go-to destination for travelers in China, and increasingly for travelers around the world, to explore travel, get inspired, make informed and cost-effective travel bookings, enjoy hassle-free on-the-go support, and share travel experience. Founded in 1999 and listed on Nasdaq in 2003 and HKEX in 2021, the Company currently operates under a portfolio of brands, including Ctrip, Qunar, Trip.com, and Skyscanner, with the mission "to pursue the perfect trip for a better world."

For further information, please contact:

Investor Relations

Trip.com Group Limited
Tel: +86 (21) 3406-4880 X 12229
Email: iremail@trip.com

 

 

Trip.com Group Limited
Unaudited Consolidated Balance Sheets
(In millions, except share and per share data)
		December 31, 2023		September 30, 2024		September 30, 2024
		RMB (million)		RMB (million)		USD (million)
ASSETS
Current assets:
Cash, cash equivalents and restricted cash		43,983		41,982		5,982
Short-term investments		17,748		34,316		4,890
Accounts receivable, net		11,410		13,839		1,972
Prepayments and other current assets		15,591		24,461		3,486
Total current assets		88,732		114,598		16,330
Property, equipment and software		5,142		5,060		721
Intangible assets and land use rights		12,644		12,898		1,838
Right-of-use asset		641		732		104
Investments (Includes held to maturity time deposit and financial products of RMB15,530 million and RMB10,561 million as of December 31,2023 and September 30, 2024, respectively)		49,342		46,745		6,661
Goodwill		59,372		60,926		8,682
Other long-term assets		688		545		78
Deferred tax asset		2,576		2,796		398
Total assets		219,137		244,300		34,812
LIABILITIES
Current liabilities:
Short-term debt and current portion of long-term debt		25,857		26,607		3,792
Accounts payable		16,459		17,596		2,507
Advances from customers		13,380		17,217		2,453
Other current liabilities		16,715		19,017		2,711
Total current liabilities		72,411		80,437		11,463
Deferred tax liability		3,825		3,797		541
Long-term debt		19,099		19,126		2,725
Long-term lease liability		477		543		77
Other long-term liabilities		319		270		39
Total liabilities		96,131		104,173		14,845
MEZZANINE EQUITY		-		733		104
SHAREHOLDERS' EQUITY
Total Trip.com Group Limited shareholders' equity		122,184		138,410		19,723
Non-controlling interests		822		984		140
Total shareholders' equity		123,006		139,394		19,863
Total liabilities, mezzanine equity and shareholders' equity		219,137		244,300		34,812

 

 

Trip.com Group Limited
Unaudited Consolidated Statements of Income
(In millions, except share and per share data)
		Quarter ended		Quarter ended		Quarter ended		Quarter ended
		September 30, 2023		June 30, 2024		September 30, 2024		September 30, 2024
		RMB (million)		RMB (million)		RMB (million)		USD (million)
Revenue:
Accommodation reservation		5,589		5,136		6,802		969
Transportation ticketing		5,367		4,871		5,650		805
Packaged-tour		1,328		1,025		1,558		222
Corporate travel		591		633		656		93
Others		876		1,123		1,234		176
Total revenue		13,751		12,788		15,900		2,265
Less: Sales tax and surcharges		(11)		(16)		(27)		(4)
Net revenue		13,740		12,772		15,873		2,261
Cost of revenue		(2,467)		(2,312)		(2,800)		(399)
Gross profit		11,273		10,460		13,073		1,862
Operating expenses:
Product development *		(3,577)		(2,993)		(3,640)		(519)
Sales and marketing *		(2,759)		(2,835)		(3,382)		(482)
General and administrative *		(1,028)		(1,077)		(1,045)		(149)
Total operating expenses		(7,364)		(6,905)		(8,067)		(1,150)
Income from operations		3,909		3,555		5,006		712
Interest income		543		634		598		85
Interest expense		(529)		(514)		(399)		(57)
Other income/(expense)		545		(183)		1,781		254
Income before income tax expense and equity in income of affiliates		4,468		3,492		6,986		994
Income tax expense		(448)		(693)		(721)		(103)
Equity in gain of affiliates		618		1,089		558		79
Net income		4,638		3,888		6,823		970
Net income attributable to non- controlling interests and mezzanine classified non-controlling interests		(23)		(55)		(58)		(8)
Net income attributable to Trip.com Group Limited		4,615		3,833		6,765		962
Earnings per ordinary share
- Basic		7.05		5.84		10.37		1.48
- Diluted		6.84		5.57		9.93		1.42
Earnings per ADS
- Basic		7.05		5.84		10.37		1.48
- Diluted		6.84		5.57		9.93		1.42
Weighted average ordinary shares outstanding
- Basic		654,146,029		655,857,569		652,719,801		652,719,801
- Diluted		674,134,652		687,977,626		681,411,847		681,411,847
* Share-based compensation included in Operating expenses above is as follows:
Product development		242		322		221		31
Sales and marketing		44		55		38		5
General and administrative		223		297		200		29

 

 

Trip.com Group Limited
Unaudited Reconciliation of  GAAP and Non-GAAP Results
(In millions, except %, share and per share data)
		Quarter ended		Quarter ended		Quarter ended		Quarter ended
		September 30, 2023		June 30, 2024		September 30, 2024		September 30, 2024
		RMB (million)		RMB (million)		RMB (million)		USD (million)
Net income		4,638		3,888		6,823		970
Less: Interest income		(543)		(634)		(598)		(85)
Add: Interest expense		529		514		399		57
Add: Other (income)/expense		(545)		183		(1,781)		(254)
Add: Income tax expense		448		693		721		103
Add: Equity in income of affiliates		(618)		(1,089)		(558)		(79)
Income from operations		3,909		3,555		5,006		712
Add: Share-based compensation		509		674		459		65
Add: Depreciation and amortization		204		207		215		31
Adjusted EBITDA		4,622		4,436		5,680		808
Adjusted EBITDA margin		34 %		35 %		36 %		36 %
Net income attributable to Trip.com Group Limited		4,615		3,833		6,765		962
Add: Share-based compensation		509		674		459		65
Add: (Gain)/loss from fair value changes of equity securities investments and exchangeable senior notes		(185)		435		(1,276)		(182)
Add: Tax effects on fair value changes of equity securities investments and exchangeable senior notes		(42)		43		15		2
Non-GAAP net income attributable to Trip.com Group Limited		4,897		4,985		5,963		847
Weighted average ordinary shares outstanding-  Diluted-non GAAP		674,134,652		687,977,626		681,411,847		681,411,847
Non-GAAP Diluted income per share		7.26		7.25		8.75		1.25
Non-GAAP Diluted income per ADS		7.26		7.25		8.75		1.25
Notes for all the condensed consolidated financial schedules presented:
Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB7.0176 on September 30, 2024 published by the Federal Reserve Board.

 

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SOURCE Trip.com Group Limited

FAQ

What was Trip.com Group's (TCOM) revenue in Q3 2024?

Trip.com Group reported net revenue of RMB15.9 billion (US$2.3 billion) in Q3 2024, representing a 16% increase year-over-year.

How much did Trip.com Group (TCOM) earn in Q3 2024?

Trip.com Group earned a net income of RMB6.8 billion (US$970 million) in Q3 2024, compared to RMB4.6 billion for the same period in 2023.

What was Trip.com Group's (TCOM) accommodation revenue in Q3 2024?

Trip.com Group's accommodation reservation revenue was RMB6.8 billion (US$969 million) in Q3 2024, representing a 22% increase year-over-year.

How did Trip.com Group's (TCOM) international business perform in Q3 2024?

Trip.com Group's international business showed strong growth, with outbound hotel and air reservations reaching 120% of pre-COVID levels and international OTA brand bookings growing over 60% year-over-year.