Klaus Vedfelt Recap and Q2 Earnings We last covered Trip.com (NASDAQ:TCOM) (OTCPK:TRPCF) back in Nov 2023. Coverage history (Seeking Alpha) We noted that the management was cautious about the company's potential for short-term margin expansion because it has increased marketing spending to compete with other nearby businesses like Meituan (OTCPK:MPNGF) and Douyin, the parent company of TikTok. With a strategic alliance with Booking (BKNG) and an edge in the supply chain, management was enthusiastic ab ...

Trip.com (TCOM US) Resilient travel demand amid peak summer season to ease market concern Trip.com Group (TCOM) released (27 Aug) 2Q24 results: net revenue was RMB12.8bn, up 13.6% YoY, in line with Bloomberg consensus estimates; nonGAAP operating income (OP) was RMB4.2bn, 6% better than consensus forecast at RMB4.0bn, thanks to better-than-expected cost control on R&D. Excluding the RMB1.1bn impact from equity in income of affiliates, non-GAAP net income of RMB3.9bn was 9% better than consensus. Although fa ...

Key TakeawaysOnline travel platform Trip.com Group reported better-than-expected profit and sales as demand for cross-border and holiday travel surged.The biggest Chinese online travel service said revenue for the latest quarter was boosted by the resilience of travel consumption in China.Trip.com's sales for accommodation reservations, transportation ticketing, package tours, and corporate travel were all higher.Its U.S.-listed shares jumped nearly 9% Tuesday after the earnings news was released. U.S.-list ...

Key TakeawaysShares of companies in the travel industry moved higher Tuesday, aided by strong earnings results from Singapore-based travel platform Trip.com.Stocks posting gains included cruise operators Norwegian Cruise Line, Royal Caribbean, and Carnival, as well as online travel platform Expedia.Cruise operators received an additional boost from a Zacks Equities Research report highlighting the industry's booking and pricing trends. Shares of travel-industry companies moved higher on Tuesday, lifted by t ...

Trip.com (TCOM) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 35.14%. A quarter ago, it was expected that this travel services company would post earnings of $0.62 per share when it actually produced earnings of $0.83, delivering a surprise of 33.87%.Over the last four quarters, the co ...

sefa ozel Executive summary Trip.com (NASDAQ:TCOM) owns the leading travel sales platform in China, with an estimated 50% market share and a growing presence in South East Asia. The group owns the leading online travel brands in the market and can drive traffic to its platform efficiently, providing merchants with the largest pool of potential customers. As of late, the company's profits have been growing rapidly as travel restrictions out of China are being eased and travellers flock to Thailand, Japan and ...

Financial Data and Key Metrics - Net revenue for Q2 2024 was RMB12.8 billion, a 14% YoY increase and a 7% QoQ increase, driven by strong recovery in the travel market [23] - Adjusted EBITDA margin for Q2 was 35%, up from 33% in the same period last year [25] - Diluted earnings per ordinary share and per ADS were RMB5.57 ($0.77) for Q2 2024, with non-GAAP diluted earnings per share at RMB7.25 ($1) [25] - Cash and cash equivalents, restricted cash, short-term investments, and financial products totaled RMB99.0 billion ($13.6 billion) as of June 30, 2024 [26] Business Line Data and Key Metrics - Accommodation reservation revenue grew 20% YoY to RMB5.1 billion, with outbound hotel bookings fully recovering to 2019 levels [23] - Transportation ticketing revenue increased 1% YoY to RMB4.9 billion, with outbound air ticket bookings also fully recovering to 2019 levels [23] - Package tour revenue surged 42% YoY to RMB1.0 billion, driven by strong growth in outbound package tours [24] - Corporate travel revenue rose 8% YoY to RMB633 million, supported by increased adoption of managed corporate travel services [24] Market Data and Key Metrics - Outbound travel bookings recovered to 100% of 2019 levels, outperforming the industry average by 20%-30% [13] - APAC destinations like Japan, Thailand, and Malaysia saw strong resurgence, with long-haul destinations such as France and Europe experiencing over 100% YoY growth in summer travel [13][14] - Inbound travel to China surged 150% YoY, with visa-free country visitors increasing by 190% [8] - International OTA platform revenue grew 70%, with APAC revenue increasing 76% YoY [16] Company Strategy and Industry Competition - The company is leveraging AI to enhance user experience, with tools like Trip.Best, TripTrends, and TripGenie providing personalized recommendations and real-time insights [9][10][30] - Mobile-first strategy continues to drive growth, with 65% of international OTA transactions and 75% in Asia conducted via mobile platforms [16] - The company is collaborating with 27 cities and 22 local airports to boost regional tourism and connectivity [15] - Sustainability initiatives, such as promoting electric vehicle rentals and solar panel installations, have improved the company's MSCI rating from BB to A [21] Management Commentary on Operating Environment and Future Outlook - Travel demand remains resilient, with strong interest in both domestic and international travel [12][13] - The company expects travel activities in H2 2024 to follow normal seasonal patterns, with favorable YoY comparisons post-National Day holiday [37] - AI is seen as a transformative force in the travel industry, with potential to revolutionize user experiences and operational efficiency [11][30] Other Important Information - The company launched the Old Friends Club for senior travelers, generating over RMB1.6 billion in spending year-to-date [18] - Entertainment-plus-travel products saw a 70% YoY increase in GMV, reflecting strong demand from younger travelers [20] - The company introduced a Family Card feature to assist elderly travelers with trip planning, catering to the evolving preferences of the silver generation [19] Q&A Session Summary Question: Why did the company use digital humans for the earnings call? - The use of digital humans underscores the company's commitment to innovation and highlights the potential of AI in transforming communication and user engagement [29] Question: How is travel demand holding up amid China's consumption slowdown? - GMV per traveler remains consistent, with strong interest in both domestic and international travel, indicating resilient travel demand [33] Question: What are the summer travel booking trends and H2 outlook? - Outbound travel bookings exceeded 2019 levels by 110%-120%, with domestic hotel reservations showing double-digit YoY growth [36] - The company expects normal seasonal patterns in H2, with robust growth in global markets [37] Question: What is the domestic ADR trend and its impact on business? - Domestic ADR and airfares decreased YoY but improved sequentially, with increased supply and outbound travel drawing mid-to-high-end travelers [40] - ADR pressure is expected to ease in Q4, with long-term benefits from supply expansion [41] Question: How is outbound travel recovering, and what are the pricing trends? - Outbound flight capacity recovered to nearly 80% of 2019 levels, with airfares 5%-10% above pre-COVID levels [45] Question: What are the key drivers of Trip.com's Q2 performance and margin trends? - Trip.com achieved 70% revenue growth, with APAC contributing over 70% of total revenue [48] - Margins are expected to follow seasonal patterns, with Q3 typically being the strongest [56] Question: How does the company differentiate itself in international markets? - The company offers one-stop travel services through its mobile app, focusing on product innovation and service quality to enhance user experience [52][53] Question: What are the company's AI initiatives and their business impact? - AI tools like Trip.Best, TripTrends, and TripGenie drive consumer awareness, improve trip planning, and enhance operational efficiency [59][60] Question: What are the opportunities in China's inbound travel market? - Inbound travel to China represents a significant opportunity, with bookings growing 200% YoY and contributing over 25% to Trip.com's revenue [64] Question: What is the company's M&A strategy and capital return policy? - The company prioritizes organic growth and synergies among existing brands, with a focus on sustainable competitive advantages [67] - Capital allocation focuses on growth investments, disciplined cost management, and consistent shareholder returns through dividends or buybacks [68]

Revenue Growth - Net revenue for Q2 2024 increased by 14% YoY to RMB12.8 billion (US$1.8 billion)[1] - Accommodation reservation revenue grew 20% YoY to RMB5.1 billion (US$707 million) in Q2 2024[1] - Transportation ticketing revenue increased 1% YoY to RMB4.9 billion (US$670 million) in Q2 2024[1] - Packaged-tour revenue surged 42% YoY to RMB1.0 billion (US$141 million) in Q2 2024[2] - Revenue from accommodation reservation grew from RMB 4,285 million in June 2023 to RMB 5,136 million in June 2024, a 19.9% increase[7] Net Income and Profitability - Net income for Q2 2024 was RMB3.9 billion (US$535 million), compared to RMB648 million in Q2 2023[2] - Net income attributable to Trip.com Group Limited rose from RMB 631 million in June 2023 to RMB 3,833 million in June 2024, a 507.1% surge[8] - Non-GAAP diluted earnings per ADS for Q2 2024 was RMB7.25 (US$1.00)[3] - Non-GAAP net income attributable to Trip.com Group Limited increased from RMB 3,434 million in June 2023 to RMB 4,985 million in June 2024, a 45.2% growth[9] - Earnings per ADS (Basic) rose from RMB 0.97 in June 2023 to RMB 5.84 in June 2024, a 502.1% increase[8] Adjusted EBITDA and Margins - Adjusted EBITDA for Q2 2024 was RMB4.4 billion (US$611 million), with a margin of 35%[2] - Adjusted EBITDA margin improved from 33% in June 2023 to 35% in June 2024[9] - Adjusted EBITDA increased from RMB 3,678 million in June 2023 to RMB 4,436 million in June 2024, a 20.6% growth[9] Financial Position and Assets - Total assets increased from RMB 219,137 million in December 2023 to RMB 247,823 million in June 2024, a growth of 13.1%[6] - Cash, cash equivalents, and restricted cash increased from RMB 43,983 million in December 2023 to RMB 51,553 million in June 2024, a 17.2% rise[6] - Short-term investments nearly doubled from RMB 17,748 million in December 2023 to RMB 38,216 million in June 2024, a 115.3% increase[6] - Total current liabilities grew from RMB 72,411 million in December 2023 to RMB 92,116 million in June 2024, a 27.2% rise[6] Operational Recovery and Expenses - Domestic and international hotel reservations recovered to 100% of pre-COVID levels in Q2 2024[1] - Sales and marketing expenses increased 20% YoY to RMB2.8 billion (US$390 million) in Q2 2024[2] Capital Market Activities - The company completed a US$1.5 billion convertible senior notes offering in June 2024[3]

SINGAPORE, Aug. 26, 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 second quarter and first half of 2024.Key Highlights for the Second Quarter of 2024Domestic and international businesses sustained growth across all segments in the second quarter ...

Trip.com Group Limited TCOM is expected to release earnings results for its second quarter, after the closing bell on Monday, Aug. 26.Analysts expect the Singapore-based company to report quarterly earnings at 74 cents per share, up from 71 cents per share in the year-ago period. Trip.com Group is projected to report quarterly revenue of $1.79 billion, according to data from Benzinga Pro.On June 4, Trip.com priced offering of $1.3 billion cash-par settled convertible senior notes due 2029.Trip.com Group sha ...