2022-12-15 03:49Financial Data and Key Metrics Changes - Trip.com Group reported net revenue of RMB6.9 billion for Q3 2022, a 29% increase year-over-year and a 72% increase quarter-over-quarter, primarily due to recovery in the China domestic market and strong performance in overseas markets [17] - Adjusted EBITDA was RMB1.4 billion for Q3 2022, compared to RMB537 million in the same period last year and RMB355 million in the previous quarter, with an adjusted EBITDA margin of 21% [21][22] - Diluted income per ordinary share was RMB0.41 or $0.06, while non-GAAP diluted income per ordinary share was RMB1.58 or $0.22 for Q3 2022 [22] Business Line Data and Key Metrics Changes - Accommodation reservation revenue for Q3 2022 was RMB2.9 billion, a 32% increase year-over-year and a 114% increase quarter-over-quarter, recovering to 71% of the 2019 level [17] - Transportation ticketing revenue for Q3 2022 was RMB2.6 billion, representing a 44% increase year-over-year and a 49% increase quarter-over-quarter, recovering to 70% of the 2019 level [18] - Packaged tour revenue for Q3 2022 was RMB387 million, stable year-over-year and a 217% increase quarter-over-quarter, recovering to 24% of the 2019 level [19] Market Data and Key Metrics Changes - Domestic hotel bookings in China increased by 25% year-over-year, with long-haul hotel bookings up over 130% sequentially from the previous quarter [8][10] - Overall air ticket bookings on the global platform achieved over 100% year-over-year growth, with Asia-Pacific showing over 400% growth compared to the same period in 2021 [9][10] - International business maintained growth momentum, with total revenue contribution from international platforms growing more than 140% year-over-year, contributing about 15% to 20% of total revenues in Q3 [36] Company Strategy and Development Direction - The company aims to strengthen its globalization strategy and enhance cooperation with global partners to provide a one-stop service model [6][10] - Focus on creating value and providing a frictionless customer experience to capture post-pandemic travelers [6] - Continued investment in local market penetration and user engagement to drive growth in both domestic and international travel segments [11][12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the travel industry despite near-term uncertainties due to COVID-19 [6][16] - Recent adjustments in COVID policies in China are expected to support the recovery of domestic travel and cross-border travel [16] - The company remains cautiously optimistic about the travel environment and is prepared to seize opportunities as they arise [25] Other Important Information - The company is committed to corporate responsibility initiatives, including rural revitalization projects in China and promoting sustainable travel practices [13][15] - The number of content creators increased by 20% year-over-year, with user-generated content growing significantly, indicating a focus on enhancing user engagement [57] Q&A Session Summary Question: Changes in user behavior and company response to new normalcy - Management noted a resilient global travel demand and evolving travel preferences, with a focus on leisure and short-haul travel [28] Question: Domestic business recovery in Q4 - Domestic travel momentum was muted due to COVID spread, but local hotel reservations maintained positive growth [32] Question: Breakdown of international performance - International air ticket bookings increased over 100% year-over-year, with significant growth in the APAC region [35] Question: Outlook for Chinese New Year travel - Search interest for travel increased significantly following new COVID policy announcements, but current reservations are low due to short booking windows [40] Question: Future growth outlook drivers post-pandemic - Strong pent-up demand is expected for both domestic and international travel, with a focus on high-end and comprehensive product offerings [44] Question: Long-term margin targets - Management expects healthy operating margins to return to at least 20% to 30% once business normalizes [48] Question: Competitive landscape in domestic travel - The company focuses on customer and partner satisfaction to maintain market share amidst increasing competition [51] Question: Recovery of international brands - Despite macro challenges, the international platform is expected to continue healthy growth due to strong product offerings [54] Question: Content strategy updates - The company aims to enhance user engagement through credible and relatable content, with significant growth in user-generated content [57]