Trip.com Group (TCOM, Financial) recently released its unaudited financial results for the third quarter ending September 30, 2024. The company reported a net revenue of RMB 15.9 billion (approximately $2.3 billion), a 16% increase from the previous year and a 24% rise from the prior quarter. Net profit reached RMB 6.8 billion (around $970 million), up from RMB 4.6 billion a year ago and RMB 3.9 billion last quarter. Shareholders' net profit mirrored this at RMB 6.8 billion (approximately $962 million).
Trip.com outperformed analysts’ forecasts, which anticipated third-quarter revenue of RMB 15.65 billion. The actual figure of RMB 15.9 billion surpassed these estimates. Additionally, non-GAAP earnings per share were estimated by analysts at RMB 6.97, while Trip.com reported diluted earnings of RMB 8.75 per American Depositary Share (ADS), approximately $1.25, again exceeding expectations.
The positive financial performance led to a more than 2% increase in Trip.com's stock price during after-hours trading in the U.S.
During Q3 2024, Trip.com experienced robust growth across all sectors. International business bookings returned to 120% of pre-COVID levels, and global OTA flight bookings increased by over 60% year-over-year. Overall net revenue grew by 16% year-on-year, with net profit rising to RMB 6.8 billion.
Trip.com continued to invest in R&D, with expenses reaching RMB 3.6 billion, comprising 23% of the quarter's net revenue. Notably, outbound travel bookings, including flights and hotels, fully recovered to 120% of 2019 levels.
The company empowered numerous partners to grow their business, providing smart upgrades and innovative services like concerts and travel packages. Its initiatives included launching a "Worry-Free Car Rental" product, significantly reducing disputes, and enhancing its hotel service platform, serving 90,000 hotel partners and saving an average of 5% on procurement costs. By promoting rural revitalization through upscale accommodations, Trip.com opened two new resorts, bringing the total to 34 institutions, a 71% year-over-year increase in nights booked.
Trip.com also focused on job creation and industry talent retention, launching a tourism guide platform supporting over 10,000 guides across 2,000 destinations. This contributed to more than 100,000 direct and 10 million indirect job opportunities.
Financially, Trip.com’s various business segments all reported growth. Accommodation booking revenue rose by 22% year-over-year and by 32% quarter-over-quarter to RMB 6.8 billion. Transportation revenue reached RMB 5.7 billion, a 5% year-over-year increase and a 16% rise from the last quarter. Vacation business income increased by 17% to RMB 1.6 billion, while corporate travel revenue climbed 11% to RMB 656 million.
The operating cost was RMB 2.8 billion, climbing 13% from the previous year. Product development expenses grew 2% to RMB 3.6 billion, while sales, marketing, and administrative costs also saw increases. The effective tax rate change was attributed to varying profitability among subsidiaries and other factors.
Trip.com's cash and cash equivalents stood at RMB 86.9 billion as of September 30, 2024.
In stock market performance, TCOM shares rose by $1.83 to close at $61.32, a 3.08% increase. In after-hours trading, the stock gained an additional $1.28 to reach $62.60, up 2.09%. Over the past 52 weeks, TCOM’s share price has varied between $31.55 and $69.67.
