TRIP.COM(09961)2024-08-26 22:08Financial Performance - Q2 2024 net revenue increased by 14% year-over-year to RMB 12.8 billion (USD 1.8 billion)[4] - Q2 2024 net profit reached RMB 3.9 billion (USD 535 million), compared to RMB 648 million in the same period of 2023[3] - Q2 2024 adjusted EBITDA was RMB 4.4 billion (USD 611 million), with an adjusted EBITDA margin of 35%, up from 33% in the same period of 2023[5] - Net revenue for the six months ended June 30, 2024, was RMB 24,677 million (USD 3,395 million), up from RMB 20,445 million in the same period in 2023[16] - Gross profit for the six months ended June 30, 2024, reached RMB 20,127 million (USD 2,769 million), compared to RMB 16,801 million in 2023[16] - Operating profit for the six months ended June 30, 2024, was RMB 6,870 million (USD 945 million), up from RMB 5,218 million in 2023[16] - Net profit attributable to Trip.com Group Limited for the six months ended June 30, 2024, was RMB 8,145 million (USD 1,121 million), compared to RMB 4,006 million in 2023[17] - Basic earnings per share for the six months ended June 30, 2024, were RMB 12.46 (USD 1.71), up from RMB 6.14 in 2023[17] - Net profit for Q2 2024 reached RMB 3,833 million (USD 535 million), a significant increase from RMB 648 million in Q2 2023[18] - Adjusted EBITDA for Q2 2024 was RMB 4,436 million (USD 611 million), with an adjusted EBITDA margin of 35%[18] - Diluted earnings per share (non-GAAP) for Q2 2024 were RMB 7.25 (USD 1.00), up from RMB 5.11 in Q2 2023[19] - Operating profit for the six months ending June 30, 2024, was RMB 6,870 million (USD 945 million)[18] - The company reported a net profit (non-GAAP) of RMB 4,985 million (USD 686 million) for Q2 2024, compared to RMB 3,434 million in Q2 2023[18] - The company's net profit (non-GAAP) for the six months ending June 30, 2024, was RMB 9,040 million (USD 1,244 million)[18] Revenue Breakdown - Accommodation booking revenue in Q2 2024 increased by 20% year-over-year to RMB 5.1 billion (USD 707 million)[4] - Travel package revenue in Q2 2024 surged by 42% year-over-year to RMB 1 billion (USD 141 million)[4] - Revenue from accommodation booking for the six months ended June 30, 2024, was RMB 9,632 million (USD 1,325 million), compared to RMB 7,765 million in 2023[16] - Revenue from transportation ticketing for the six months ended June 30, 2024, was RMB 9,871 million (USD 1,358 million), compared to RMB 8,970 million in 2023[16] - Revenue from travel packages for the six months ended June 30, 2024, was RMB 1,908 million (USD 263 million), up from RMB 1,108 million in 2023[16] Travel and Booking Trends - Domestic hotel bookings on the company's Chinese platform increased by approximately 20% year-over-year, driven by rapid growth in outbound and local travel[3] - Outbound hotel and flight bookings fully recovered to 100% of pre-pandemic levels in 2019, significantly surpassing the industry average international flight recovery rate of over 70%[3] - Total revenue from the company's international OTA platform grew by approximately 70% year-over-year[3] Financial Position and Assets - As of June 30, 2024, the company's cash and cash equivalents, restricted cash, short-term investments, and time deposits and wealth management products totaled RMB 99 billion (USD 13.6 billion)[6] - Cash, cash equivalents, and restricted cash increased from RMB43.983 billion ($7.094 billion) as of December 31, 2023 to RMB51.553 billion ($7.094 billion) as of June 30, 2024[14] - Total current assets grew from RMB88.732 billion ($16.725 billion) to RMB121.539 billion ($16.725 billion) over the same period[14] - Short-term investments increased from RMB11.410 billion ($1.776 billion) to RMB12.907 billion ($1.776 billion) as of June 30, 2024[14] - Prepaid expenses and other current assets rose from RMB15.591 billion ($2.596 billion) to RMB18.863 billion ($2.596 billion)[14] - Total assets expanded from RMB219.137 billion ($34.102 billion) to RMB247.823 billion ($34.102 billion) over the six-month period[14] - Total liabilities increased from RMB 96,131 million in 2023 to RMB 116,431 million in 2024, with current liabilities rising from RMB 72,411 million to RMB 92,116 million[15] - Total equity attributable to Trip.com Group Limited increased from RMB 122,184 million in 2023 to RMB 130,500 million in 2024[15] Debt and Financing - The company issued $1.5 billion in convertible senior notes due in 2029, including an additional $200 million due to the full exercise of the initial purchasers' option[7] - The convertible notes bear an annual interest rate of 0.75% and will be settled in cash upon conversion[7] - Concurrent with the notes offering, the company repurchased approximately 6 million ADSs for a total consideration of $300 million[8] - Interest expenses for the six months ending June 30, 2024, were RMB 1,013 million (USD 139 million)[18] Accounting and Reporting - The company provides non-GAAP financial measures to supplement GAAP financial statements, including adjusted EBITDA and adjusted EBITDA margin[11] - Revenue from product development under IFRS for the six months ending June 30, 2024, was RMB 6,155 million[22] - Sales and marketing expenses under IFRS for the six months ending June 30, 2024, were RMB 5,156 million[22] - Product R&D expenses under US GAAP were RMB 5,627 million, adjusted to RMB 5,595 million under IFRS[23] - Sales and marketing expenses under US GAAP were RMB 4,110 million, adjusted to RMB 4,104 million under IFRS[23] - Operating profit under US GAAP was RMB 5,218 million, adjusted to RMB 5,307 million under IFRS[23] - Net profit under US GAAP was RMB 4,022 million, adjusted to RMB 4,043 million under IFRS[23] - Total assets under US GAAP were RMB 247,823 million, adjusted to RMB 247,492 million under IFRS[24] - Total liabilities under US GAAP were RMB 116,431 million, adjusted to RMB 115,527 million under IFRS[24] - Total equity under US GAAP was RMB 131,392 million, adjusted to RMB 131,965 million under IFRS[24] - Intangible assets and land use rights under US GAAP were RMB 12,551 million, adjusted to RMB 12,623 million under IFRS[24] - Property, plant, and equipment under US GAAP were RMB 5,083 million, adjusted to RMB 4,932 million under IFRS[24] - Investments under US GAAP were RMB 45,392 million, adjusted to RMB 42,792 million under IFRS[24] - Available-for-sale debt investments are measured at fair value under US GAAP, with unrealized gains or losses reflected in "Accumulated Other Comprehensive Income" in the consolidated balance sheet[27] - Under IFRS, certain debt investments are classified as financial assets measured at fair value through profit or loss due to failing the SPPI test[27] - Under US GAAP, preferred stock investments require fair value adjustments through income or other comprehensive income, which is not applicable under IFRS[28] - Convertible bonds are measured at amortized cost under US GAAP, with any difference between initial carrying amount and repayment amount recognized as interest expense using the effective interest method[28] - Under IFRS, convertible bonds are designated as measured at fair value with changes recognized in profit or loss, except for credit risk changes which are recognized in other comprehensive income[28] - Software is recorded under property, plant, and equipment under US GAAP[28] - Under IFRS, software is reported under intangible assets, requiring reclassification from property, plant, and equipment[28] Corporate Events - The company will hold an earnings conference call on August 26, 2024, at 8:00 PM Eastern Time (August 27, 8:00 AM Hong Kong Time)[9] Shareholder Information - Weighted average diluted shares outstanding (non-GAAP) for Q2 2024 were 687,977,626[19]