2025-11-19 01:50Summary of Trip.com Group (TCOM) Conference Call Company Overview - Company: Trip.com Group (TCOM) - Market Cap: $46.0 billion - Enterprise Value: $39.8 billion - 12-Month Price Target: $91.00 (current price: $72.44, upside: 25.6%) [1][5][25] Key Financial Results - 3Q25 Revenue Growth: +16% YoY to Rmb6.1 billion, slightly above estimates [1][19] - EBIT Growth: +12% YoY, with EBIT margin at 33.4%, slightly above guidance [1][32] - Net Profit: Rmb19.2 billion, significantly up from Rmb6 billion in 3Q24 due to a one-off disposal gain [1][23] - Revenue Contribution: Domestic business at 65%, outbound travel at 15%, and Skyscanner at 7% [1][19] Segment Performance - Accommodation Revenue: Grew +18% YoY, driven by a +70% increase in international bookings [1][19][26] - Transportation Ticketing: Revenue growth accelerated to +12% YoY, with air ticket volume growth over +60% [1][27] - Corporate Travel: Revenue growth accelerated to +15% YoY, driven by an expanding customer base [1][28] - Packaged Tours: Remained soft at +3% YoY, below guidance due to demand for personalized travel experiences [1][19] Market Trends and Outlook - Travel Demand: Management remains optimistic about leisure travel demand, especially during the Golden Week holidays [1][20] - Competitive Landscape: Despite increased competition from Agoda and Booking.com, TCOM believes the market remains fragmented, providing growth opportunities [1][20] - Guidance for 4Q25: Revenue growth expected at +15-20% YoY, with accommodation and transportation ticketing segments projected to grow at +17-22% and +10-15% respectively [1][22][31] Cost Management and Margins - Cost Control: Personnel-related expenses grew +9% YoY, below revenue growth, contributing to margin stability [1][32] - Sales & Marketing Expenses: Expected to increase to ~27% of revenue in 4Q25 due to heightened marketing efforts [1][32] Shareholder Returns and Cash Position - Share Repurchase: Completed a $400 million annual share repurchase program [1][35] - Cash Position: Cash and equivalents totaled Rmb107.7 billion (approximately $15.2 billion) as of September 2025 [1][36] Additional Insights - User Growth: Monthly active users (MAU) grew over 70% YoY in October [1][20] - Experience Market: Currently generates ~Rmb5 billion GMV, seen as a complement to other booking services rather than a primary focus [1][21] - Long-term Strategy: TCOM aims to balance revenue growth with margin management, particularly for the Trip.com platform [1][23][25] This summary encapsulates the key points from the conference call, highlighting the financial performance, market trends, and strategic outlook for Trip.com Group.