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

SINGAPORE, Nov. 19, 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: [email protected]

 

 

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.