TRIP.COM(HK:09961)2022-12-14 22:06Financial Performance - In Q3 2022, Trip.com Group's net revenue reached RMB 6.9 billion (USD 969 million), representing a year-over-year increase of 29% and a quarter-over-quarter increase of 72%[5] - Adjusted EBITDA for Q3 2022 was RMB 1.4 billion (USD 198 million), a 164% increase compared to RMB 537 million in Q3 2021, with an adjusted EBITDA margin of 21%[8] - The company reported a net profit of RMB 245 million (USD 34 million) in Q3 2022, a significant improvement from a net loss of RMB 868 million in the same quarter of 2021[8] - Total revenue for the three months ended September 30, 2022, was RMB 6,897 million, representing a 29.2% increase from RMB 5,346 million for the same period in 2021[17] - Gross profit for the three months ended September 30, 2022, was RMB 5,621 million, up 36.4% from RMB 4,121 million in the same period of 2021[17] - Operating profit for the three months ended September 30, 2022, was RMB 854 million, compared to an operating loss of RMB 246 million for the same period in 2021[17] - Net profit attributable to Trip.com Group Ltd. for the three months ended September 30, 2022, was RMB 266 million, a significant recovery from a net loss of RMB 849 million in the same period of 2021[18] - EBITDA for the three months ended September 30, 2022, was RMB 1,419 million, with an EBITDA margin of 21%[19] Revenue Breakdown - Domestic hotel booking revenue grew by 25% year-over-year, while international flight bookings increased by over 100% year-over-year[3] - The revenue from accommodation bookings was RMB 2.9 billion (USD 480 million), up 32% year-over-year and 114% quarter-over-quarter[5] - Transportation ticketing revenue reached RMB 2.6 billion (USD 369 million), reflecting a 44% year-over-year increase and a 49% quarter-over-quarter increase[5] - The company reported a significant increase in accommodation bookings, with revenue from accommodation reservations reaching RMB 2,904 million for the three months ended September 30, 2022, up from RMB 2,194 million in the same period of 2021[17] Expenses and Costs - The company’s operating costs increased by 4% year-over-year to RMB 1.3 billion (USD 179 million), accounting for 18% of net revenue[6] - Research and development expenses rose by 8% year-over-year to RMB 2.5 billion (USD 350 million), representing 36% of net revenue[6] - Sales and marketing expenses increased by 13% year-over-year to RMB 1.4 billion (USD 210 million), accounting for 21% of net revenue[7] - The effective tax expense for Q3 2022 was RMB 277 million (USD 39 million), compared to RMB 95 million in Q3 2021[7] Cash and Assets - As of September 30, 2022, the total cash and cash equivalents, restricted cash, short-term investments, and held-to-maturity deposits amounted to RMB 62 billion (USD 8.7 billion)[9] - Total current assets increased from RMB 66.1 billion as of December 31, 2021, to RMB 67.0 billion as of September 30, 2022[15] - The total assets of the company rose from RMB 191.9 billion as of December 31, 2021, to RMB 194.3 billion as of September 30, 2022[15] - Total liabilities increased slightly to RMB 83,355 million as of September 30, 2022, from RMB 81,403 million as of December 31, 2021[16] - Total equity attributable to shareholders of Trip.com Group Ltd. was RMB 110,230 million as of September 30, 2022, compared to RMB 109,677 million as of December 31, 2021[16] Strategic Focus and Risks - The company operates a comprehensive travel platform, serving as a preferred choice for travelers in China and increasingly for global tourists[14] - The company has faced risks including potential economic slowdowns, impacts from the COVID-19 pandemic, and competition from both new and existing rivals[11] - The company is committed to enhancing its operational strategies and expanding its market presence through strategic investments and acquisitions[11] - The company plans to continue expanding its market presence and investing in new technologies to enhance user experience and operational efficiency[19] Non-GAAP Measures - The company reported a net profit attributable to Trip.com Group Ltd. under non-GAAP measures, which provides a more comparable operational data across periods[12] - The management emphasized the importance of non-GAAP financial data for future planning and forecasting capabilities[12] Share Information - The diluted earnings per share for Q3 2022 were RMB 0.41 (USD 0.06) while the loss per share, excluding stock-based compensation, was RMB 1.58 (USD 0.22)[9] - The number of weighted average ordinary shares outstanding for the diluted calculation was 653,485,857 for the three months ended September 30, 2022[20] Share Repurchase - The company repurchased a total of USD 51 million in convertible bonds due in 2022, including USD 25 million from a subsidiary of Booking Holdings Inc.[9]