Trip.com Group Ltd (TCOM) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and ...

In This Article:

  • Net Revenue: CNY15.9 billion, a 16% increase year over year and 24% increase from the previous quarter.

  • Accommodation Reservation Revenue: CNY6.8 billion, a 22% increase year over year and 32% increase quarter over quarter.

  • Transportation Ticketing Revenue: CNY5.7 billion, a 5% increase year over year and 16% increase quarter over quarter.

  • Packaged Tour Revenue: CNY1.6 billion, a 17% increase year over year and 52% increase quarter over quarter.

  • Corporate Travel Revenue: CNY656 million, an 11% increase year over year and 4% increase quarter over quarter.

  • Adjusted EBITDA: CNY5.7 billion, compared to CNY4.6 billion in the same period last year and CNY4.4 billion in the previous quarter.

  • Diluted Earnings per Share/ADS: CNY9.93 or USD1.42 for the third quarter of 2024.

  • Non-GAAP Diluted Earnings per Share/ADS: CNY8.75 or USD1.25 for the third quarter.

  • Cash and Cash Equivalents: CNY86.9 billion or USD12.4 billion as of September 30, 2024.

Release Date: November 19, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Trip.com Group Ltd (NASDAQ:TCOM) reported a 16% year-over-year increase in net revenue for Q3 2024, driven by strong travel market performance during the summer and National Day holiday.

  • Outbound hotel and air ticket bookings recovered to 120% compared to 2019 levels, outperforming the industry by 40%.

  • The company has seen significant growth in international markets, with air ticket and hotel bookings on its international OTA platform rising by over 60% year over year.

  • Trip.com Group Ltd (NASDAQ:TCOM) has been recognized with the Forbes China Best AI-driven and Digitized Employer of the Year 2024 Award, highlighting its commitment to integrating AI into its operations.

  • The company has successfully expanded its presence in the APAC region, with its international OTA app becoming the most downloaded in several markets, including Hong Kong, Macau, and South Korea.

Negative Points

  • Hotel prices are still below last year's levels, although the gap has narrowed to mid- to low single digits.

  • Outbound flight capacity has only reached around 80% of the 2019 level, indicating a slower recovery in this segment.

  • The growth rate of hotel suppliers on Trip.com Group Ltd (NASDAQ:TCOM)'s platform is normalizing, reflecting potential challenges in maintaining rapid expansion.

  • The financial impact of AI investments is still minimal, and quantifying the benefits remains challenging.

  • Marketing expenses are expected to increase in Q4 due to seasonality and fluctuations in revenue mix between China and international businesses.