TRIP.COM(TCOM)2025-02-25 06:50Financial Data and Key Metrics Changes - In Q4 2024, Trip.com Group reported a net revenue of RMB 12.7 billion, representing a 23% increase year-over-year and a 20% decrease quarter-over-quarter [32] - For the full year of 2024, total net revenue was RMB 53.3 billion, reflecting a 20% year-over-year growth [32] - Adjusted EBITDA for Q4 was RMB 3.0 billion, compared to RMB 2.9 billion in the same period last year and RMB 5.7 billion in the previous quarter [38] - Diluted earnings per ordinary share for Q4 were RMB 3.09 or USD 0.42, while non-GAAP diluted earnings were RMB 4.35 or USD 0.60 [39] Business Line Data and Key Metrics Changes - Accommodation reservation revenue in Q4 was RMB 5.2 billion, a 33% increase year-over-year but a 24% decrease quarter-over-quarter [33] - Transportation ticketing revenue for Q4 was RMB 4.8 billion, a 16% increase year-over-year and a 15% decrease quarter-over-quarter [33] - Packaged tour revenue for Q4 was RMB 870 million, a 24% increase year-over-year but a 44% decrease quarter-over-quarter [34] - Corporate travel revenue for Q4 was RMB 702 million, an 11% increase year-over-year and a 7% increase quarter-over-quarter [35] Market Data and Key Metrics Changes - In 2024, outbound hotel and air ticket bookings recovered to more than 120% compared to 2019, outperforming the industry by 30% to 40% [16] - Inbound travel bookings on Trip.com platforms increased by over 100% year-over-year, with those from visa-free countries rising by over 150% [18] - The international business represented 14% of group revenue in Q4 and 10% for the full year of 2024 [10] Company Strategy and Development Direction - The company focuses on AI innovation to enhance travel accessibility and personalization, with tools like TripGenie seeing a 200% traffic surge [10] - Trip.com is committed to promoting inbound travel and rural revitalization as part of its sustainability initiatives [11][12] - The company aims to capitalize on trends among younger travelers and the silver generation, introducing tailored offerings for both demographics [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the travel market, highlighting strong demand for both domestic and international travel [50] - The company anticipates continued growth driven by the recovery of direct flights and relaxed visa restrictions [52][53] - Management emphasized the importance of enhancing operational efficiency and leveraging AI to support long-term growth [59] Other Important Information - The company announced a share repurchase program of up to USD 400 million and a cash dividend totaling approximately USD 200 million for 2025 [40][41] - As of December 31, 2024, the balance of cash and cash equivalents was RMB 90 billion or USD 12.3 billion [40] Q&A Session Summary Question: Thoughts on AI's impact on OTAs - Management believes AI will complement OTAs rather than replace them, enhancing personalized travel planning [45][47] Question: Current leisure and business travel demand outlook - Management sees strong demand, particularly in domestic travel and among younger and early retired travelers [50][51] Question: Outlook for operating margin trends - Management does not set specific margin targets but expects continuous improvement in operational efficiency to support margins [58][59] Question: Performance during Chinese New Year and hotel price outlook - Travel demand remained healthy during the holiday, with outbound bookings increasing over 20% year-over-year [63][64] Question: Outlook for outbound travel and capacity improvement - Outbound flight capacity is expected to recover to over 90% of pre-pandemic levels by 2025, with continued growth in outbound bookings [68][70] Question: Growth outlook for Trip.com platform - The platform is experiencing rapid growth, supported by a focus on customer service and AI investments [74][75] Question: Contribution of inbound travel to business - Inbound travel has significant potential, with management expecting it to become a major contributor to the industry [79][82] Question: Updates on capital return program - The dividend payout date is set for March 27, 2025, for ordinary shares, with a new capital return program authorized for 2025 [85]