SHANGHAI, June 7, 2023
/PRNewswire/ -- Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961)
("Trip.com Group" or the "Company"), a leading one-stop travel
service provider of accommodation reservation, transportation
ticketing, packaged tours, and corporate travel management, today
announced its unaudited financial results for the first quarter of
2023.
Key Highlights for the First Quarter of 2023
- Domestic and international business continued to show robust
recovery in the first quarter of 2023
- Domestic hotel bookings grew by more
than 100% year over year.
- Same city staycation hotel bookings grew
by 150% compared to those for the same period in 2019, the
pre-COVID level.
- Outbound hotel and air reservations
recovered to over 40% of those for the same period in 2019, the
pre-COVID level, despite a 15% recovery in the overall outbound
aviation market.
- Air-ticket bookings on the Company's
global OTA platforms grew by over 200% year over year, and grew by
over 100% compared to those for the same period in 2019, the
pre-COVID level.
- The Company delivered strong results in the first quarter of
2023
- Net revenue increased by 124% year over
year and exceeded that for the same period in 2019, the pre-COVID
level.
- Net income for the first quarter was
RMB3.4 billion (US$491 million), which improved from a net loss
of RMB1.0 billion for the same period
in 2022 and net income of RMB2.1
billion for the previous quarter.
- Adjusted EBITDA for the first quarter
was RMB2.8 billion (US$410 million). Adjusted EBITDA margin was 31%,
compared to 2% for the same period in 2022 and 6% for the previous
quarter.
"During the first quarter of 2023, there has been an upsurge in
both domestic and outbound travel activities in China," said James
Liang, Executive Chairman. "We are encouraged to see the
world becoming more open and connected at the start of 2023. We
remain positive for the outlook of the global travel industry and
the opportunities that lie ahead."
"We are delighted to see that our first quarter results have
demonstrated the long-term growth prospects of the travel industry
and the strong execution of our team," said Jane Sun, Chief Executive Officer. "Over the
past three years, we have focused on strengthening our supply
chain, content offerings, and service quality. Such improvements
empower us to better capture the pent-up demand for travel and
establish a solid foundation for sustainable growth."
First Quarter of 2023 Financial Results and Business
Updates
The Company's business has been significantly recovered since
most of the travel restrictions and quarantine requirements in
China were lifted. The
accumulative travel backlog demand has been releasing since
January 2023.
For the first quarter of 2023, Trip.com Group reported net
revenue of RMB9.2 billion
(US$1.3 billion), representing a 124%
increase from the same period in 2022 and an 83% increase from the
previous quarter, primarily due to the substantial recovery of
travel market.
Accommodation reservation revenue for the first quarter of 2023
was RMB3.5 billion (US$507 million), representing a 140% increase
from the same period in 2022 and a 106% increase from the previous
quarter, primarily due to the substantial recovery of travel
market.
Transportation ticketing revenue for the first quarter of
2023 was RMB4.2 billion
(US$605 million), representing a 150%
increase from the same period in 2022 and an 89% increase from the
previous quarter, primarily due to the substantial recovery of
travel market.
Packaged-tour revenue for the first quarter of 2023 was
RMB386 million (US$56 million), representing a 211%
increase from the same period in 2022 and a 135% increase from the
previous quarter, primarily due to the substantial recovery of
travel market.
Corporate travel revenue for the first quarter of 2023 was
RMB445 million (US$65 million),
representing a 100% increase from the same period in 2022 and
a 61% increase from the previous quarter, primarily due to the
substantial recovery of travel market.
Cost of revenue for the first quarter of 2023 increased by 53%
to RMB1.6 billion (US$238 million) from the same period in 2022 and
increased by 37% from the previous quarter, primarily due to the
substantial recovery of travel market. Cost of revenue as a
percentage of net revenue was 18% for the first quarter of
2023.
Product development expenses for the first quarter of
2023 increased by 35% to RMB2.7 billion (US$389 million) from the same period in 2022 and
increased by 27% from the previous quarter, primarily due to an
increase in product development personnel related expenses. Product
development expenses as a percentage of net revenue was 29%
for the first quarter of 2023.
Sales and marketing expenses for the first quarter of 2023
increased by 108% to RMB1.8 billion
(US$256 million) from the same period
in 2022 and increased by 53% from the previous quarter, primarily
due to an increase in expenses relating to sales and marketing
promotion activities. Sales and marketing expenses as a percentage
of net revenue was 19% for the first quarter of 2023.
General and administrative expenses for the first quarter of
2023 increased by 53% to RMB891
million (US$130 million) from the same period in 2022
and increased by 9% from the previous quarter, primarily due to an
increase in general and administrative personnel related expenses.
General and administrative expenses as a percentage of net
revenue was 10% for the first quarter of 2023.
Income tax expense for the first quarter of 2023 was
RMB341 million (US$50 million), compared to income tax benefit of
RMB14 million for the same period in
2022 and income tax expense of RMB246
million for the previous quarter. The change in Trip.com
Group's effective tax rate was primarily due to the combined
impacts of changes in respective profitability of its subsidiaries
with different tax rates, certain non-taxable income or loss
resulting from the fair value changes in equity securities
investments and exchangeable senior notes, and changes in valuation
allowance provided for deferred tax assets.
Net income for the first quarter of 2023 was RMB3.4 billion (US$491
million), compared to net loss of RMB1.0 billion for the same period in 2022 and
net income of RMB2.1 billion for the
previous quarter. Adjusted EBITDA for the first quarter of 2023 was
RMB2.8 billion
(US$410 million), compared to RMB91
million for the same period in 2022 and RMB286 million for the previous quarter. Adjusted
EBITDA margin was 31% for the first quarter of 2023, compared to 2%
for the same period in 2022 and 6% for the previous quarter.
Net income attributable to Trip.com Group's shareholders for the
first quarter of 2023 was RMB3.4
billion (US$491 million),
compared to net loss attributable to Trip.com Group's shareholders
of RMB1.0 billion for the same period
in 2022 and net income attributable to Trip.com Group's
shareholders of RMB2.1 billion for
the previous quarter. Excluding share-based compensation charges,
fair value changes of equity securities investments and
exchangeable senior notes recorded in other income/(expense) and
their tax effects, non-GAAP net income attributable to Trip.com
Group's shareholders for the first quarter of 2023 was RMB2.1 billion (US$300
million), compared to non-GAAP net loss attributable to
Trip.com Group's shareholders of RMB36
million for the same period in 2022 and non-GAAP net income
attributable to Trip.com Group's shareholders of RMB498 million for the previous quarter.
Diluted earnings per ordinary share and per ADS was RMB5.02 (US$0.73) for the first quarter of
2023. Excluding share-based compensation charges, fair value
changes of equity securities investments and exchangeable senior
notes and their tax effects, non-GAAP diluted earnings per ordinary
share and per ADS was RMB3.07 (US$0.45) for the first quarter of
2023. Each ADS currently represents one ordinary share of the
Company.
As of March 31, 2023, the balance
of cash and cash equivalents, restricted cash, short-term
investment, held to maturity time deposit and financial products
was RMB68.0 billion (US$9.9 billion).
Conference Call
Trip.com Group's management team will host a conference call at
8:00 PM EST on June 7, 2023 (or 8:00 AM
CST on June 8, 2023) following
this announcement.
The conference call will be available live on Webcast and for
replay at: https://investors.trip.com. The call will be archived
for twelve months on our website.
All participants must pre-register to join this conference call
using the Participant Registration link below:
https://register.vevent.com/register/BI17472948791e4acabf2ae31d36cdf7f6
Upon registration, each participant will receive details for
this conference call, including dial-in numbers and a unique access
PIN. To join the conference, please dial the number provided, enter
your PIN, and you will join the conference instantly.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"may," "will," "expect," "anticipate," "future," "intend," "plan,"
"believe," "estimate," "is/are likely to," "confident" or other
similar statements. Among other things, quotations from management
in this press release, as well as Trip.com Group's strategic and
operational plans, contain forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to, severe or prolonged downturn in
the global or Chinese economy, general declines or disruptions in
the travel industry, volatility in the trading price of Trip.com
Group's ADSs or shares, Trip.com Group's reliance on its
relationships and contractual arrangements with travel suppliers
and strategic alliances, failure to compete against new and
existing competitors, failure to successfully manage current growth
and potential future growth, risks associated with any strategic
investments or acquisitions, seasonality in the travel industry in
the relevant jurisdictions where Trip.com Group operates, failure
to successfully develop Trip.com Group's existing or future
business lines, damage to or failure of Trip.com Group's
infrastructure and technology, loss of services of Trip.com Group's
key executives, the impact of COVID-19 to Trip.com Group's business
operations, adverse changes in economic and political policies of
the PRC government, inflation in China, risks and uncertainties associated with
PRC laws and regulations with respect to the ownership structure of
the variable interest entities and the contractual arrangements
among Trip.com Group, the variable interest entities and their
shareholders, and other risks outlined in Trip.com Group's filings
with the U.S. Securities and Exchange Commission or the Stock
Exchange of Hong Kong Limited. All information provided in this
press release and in the attachments is as of the date of the
issuance, and Trip.com Group does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
About Non-GAAP Financial Measures
To supplement Trip.com Group's consolidated financial
statements, which are prepared and presented in accordance with
United States Generally Accepted Accounting Principles ("GAAP"),
Trip.com Group uses non-GAAP financial information related to
adjusted net income attributable to Trip.com Group Limited,
adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted
earnings per ordinary share and per ADS, each of which is adjusted
from the most comparable GAAP result to exclude the share-based
compensation charges that are not tax deductible, fair value
changes of equity securities investments and exchangeable senior
notes, net of tax, and other applicable items. Trip.com Group's
management believes the non-GAAP financial measures facilitate
better understanding of operating results from quarter to quarter
and provide management with a better capability to plan and
forecast future periods.
Non-GAAP information is not prepared in accordance with GAAP,
does not have a standardized meaning under GAAP, and may be
different from non-GAAP methods of accounting and reporting used by
other companies. The presentation of this additional information
should not be considered a substitute for GAAP results. A
limitation of using non-GAAP financial measures is that non-GAAP
measures exclude share-based compensation charges, fair value
changes of equity securities investments and exchangeable senior
notes and their tax effects that have been and will continue to be
significant recurring expenses in Trip.com Group's business for the
foreseeable future.
Reconciliations of Trip.com Group's non-GAAP financial data to
the most comparable GAAP data included in the consolidated
statement of operations are included at the end of this press
release.
About Trip.com Group Limited
Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) is a leading
global one-stop travel platform, integrating a comprehensive suite
of travel products and services and differentiated travel content.
It is the go-to destination for travelers in China, and increasingly for travelers around
the world, to explore travel, get inspired, make informed and
cost-effective travel bookings, enjoy hassle-free on-the-go
support, and share travel experience. Founded in 1999 and listed on
Nasdaq in 2003 and HKEX in 2021, the Company currently operates
under a portfolio of brands, including Ctrip, Qunar, Trip.com, and
Skyscanner, with the mission "to pursue the perfect trip for a
better world."
For further information, please contact:
Investor Relations
Trip.com Group Limited
Tel: +86 (21) 3406-4880 X 12229
Email: iremail@trip.com
Trip.com Group
Limited
|
Unaudited
Consolidated Balance Sheets
|
(In millions, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
December
31, 2022
|
|
March
31, 2023
|
|
March
31, 2023
|
RMB
(million)
|
RMB
(million)
|
USD
(million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
18,487
|
|
30,576
|
|
4,452
|
Short-term
investments
|
|
25,545
|
|
17,386
|
|
2,532
|
Accounts receivable,
net
|
|
5,486
|
|
9,257
|
|
1,348
|
Prepayments and other
current assets
|
|
11,917
|
|
15,167
|
|
2,208
|
|
|
|
|
|
|
|
Total current
assets
|
|
61,435
|
|
72,386
|
|
10,540
|
|
|
|
|
|
|
|
Property, equipment and
software
|
|
5,204
|
|
5,140
|
|
748
|
Intangible assets and
land use rights
|
|
12,825
|
|
12,781
|
|
1,861
|
Right-of-use
asset
|
|
819
|
|
757
|
|
110
|
Investments (Includes
held to maturity time deposit and
financial products of RMB15,527 million and RMB20,048
million as of December 31,2022 and March 31, 2023,
respectively)
|
|
50,177
|
|
56,720
|
|
8,259
|
Goodwill
|
|
59,337
|
|
59,340
|
|
8,641
|
Other long-term
assets
|
|
570
|
|
596
|
|
87
|
Deferred tax
asset
|
|
1,324
|
|
1,413
|
|
206
|
|
|
|
|
|
|
|
Total
assets
|
|
191,691
|
|
209,133
|
|
30,452
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
|
32,674
|
|
39,231
|
|
5,712
|
Accounts
payable
|
|
7,569
|
|
11,287
|
|
1,644
|
Advances from
customers
|
|
8,278
|
|
10,467
|
|
1,524
|
Other current
liabilities
|
|
12,718
|
|
13,562
|
|
1,975
|
Total current
liabilities
|
|
61,239
|
|
74,547
|
|
10,855
|
|
|
|
|
|
|
|
Deferred tax
liability
|
|
3,487
|
|
3,485
|
|
507
|
Long-term
debt
|
|
13,177
|
|
13,453
|
|
1,959
|
Long-term lease
liability
|
|
534
|
|
498
|
|
73
|
Other long-term
liabilities
|
|
235
|
|
263
|
|
38
|
|
|
|
|
|
|
|
Total
liabilities
|
|
78,672
|
|
92,246
|
|
13,432
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Trip.com Group
Limited shareholders' equity
|
|
112,283
|
|
116,150
|
|
16,913
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
736
|
|
737
|
|
107
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
113,019
|
|
116,887
|
|
17,020
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
191,691
|
|
209,133
|
|
30,452
|
|
|
|
|
|
|
|
Trip.com Group
Limited
|
Unaudited
Consolidated Statements of (Loss)/Income
|
(In millions, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Quarter
ended
|
|
Quarter
ended
|
|
Quarter
ended
|
March
31, 2022
|
|
December
31, 2022
|
|
March
31, 2023
|
|
March
31, 2023
|
RMB
(million)
|
|
RMB
(million)
|
|
RMB
(million)
|
|
USD
(million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Accommodation
reservation
|
|
1,450
|
|
1,689
|
|
3,480
|
|
507
|
Transportation
ticketing
|
|
1,663
|
|
2,204
|
|
4,156
|
|
605
|
Packaged-tour
|
|
124
|
|
164
|
|
386
|
|
56
|
Corporate
travel
|
|
222
|
|
277
|
|
445
|
|
65
|
Others
|
|
652
|
|
697
|
|
744
|
|
108
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
4,111
|
|
5,031
|
|
9,211
|
|
1,341
|
|
|
|
|
|
|
|
|
|
Less: Sales tax and
surcharges
|
|
(2)
|
|
(4)
|
|
(13)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
4,109
|
|
5,027
|
|
9,198
|
|
1,339
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
(1,067)
|
|
(1,199)
|
|
(1,637)
|
|
(238)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
3,042
|
|
3,828
|
|
7,561
|
|
1,101
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Product development
*
|
|
(1,974)
|
|
(2,104)
|
|
(2,674)
|
|
(389)
|
Sales and marketing
*
|
|
(843)
|
|
(1,148)
|
|
(1,755)
|
|
(256)
|
General and
administrative *
|
|
(584)
|
|
(816)
|
|
(891)
|
|
(130)
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
(3,401)
|
|
(4,068)
|
|
(5,320)
|
|
(775)
|
|
|
|
|
|
|
|
|
|
(Loss)/income from
operations
|
|
(359)
|
|
(240)
|
|
2,241
|
|
326
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
591
|
|
458
|
|
441
|
|
64
|
Interest
expense
|
|
(341)
|
|
(427)
|
|
(486)
|
|
(71)
|
Other
(expense)/income
|
|
(707)
|
|
2,745
|
|
1,652
|
|
241
|
|
|
|
|
|
|
|
|
|
(Loss)/income before
income tax
expense and equity in income of
affiliates
|
|
(816)
|
|
2,536
|
|
3,848
|
|
560
|
|
|
|
|
|
|
|
|
|
Income tax
benefit/(expense)
|
|
14
|
|
(246)
|
|
(341)
|
|
(50)
|
Equity in loss of
affiliates
|
|
(199)
|
|
(210)
|
|
(133)
|
|
(19)
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
(1,001)
|
|
2,080
|
|
3,374
|
|
491
|
|
|
|
|
|
|
|
|
|
Net loss/(income)
attributable to non-
controlling interests
|
|
12
|
|
(23)
|
|
1
|
|
0
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to
Trip.com Group Limited
|
|
(989)
|
|
2,057
|
|
3,375
|
|
491
|
|
|
|
|
|
|
|
|
|
(Losses)/earnings per
ordinary share
|
|
|
|
|
|
|
|
|
- Basic
|
|
(1.52)
|
|
3.17
|
|
5.18
|
|
0.75
|
- Diluted
|
|
(1.52)
|
|
3.12
|
|
5.02
|
|
0.73
|
|
|
|
|
|
|
|
|
|
(Losses)/earnings per
ADS
|
|
|
|
|
|
|
|
|
- Basic
|
|
(1.52)
|
|
3.17
|
|
5.18
|
|
0.75
|
- Diluted
|
|
(1.52)
|
|
3.12
|
|
5.02
|
|
0.73
|
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
|
|
|
|
- Basic
|
|
647,812,835
|
|
649,893,734
|
|
651,849,468
|
|
651,849,468
|
- Diluted
|
|
647,812,835
|
|
658,660,803
|
|
672,743,729
|
|
672,743,729
|
|
|
|
|
|
|
|
|
|
* Share-based
compensation included in Operating expenses above is as
follows:
|
|
|
|
|
Product
development
|
|
107
|
|
147
|
|
179
|
|
26
|
Sales and
marketing
|
|
18
|
|
37
|
|
31
|
|
5
|
General and
administrative
|
|
98
|
|
126
|
|
168
|
|
24
|
|
|
|
|
|
|
|
|
|
Trip.com Group
Limited
|
Unaudited Reconciliation
of GAAP and Non-GAAP Results
|
(In millions, except
% and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Quarter
ended
|
|
Quarter
ended
|
|
Quarter
ended
|
March
31, 2022
|
|
December
31, 2022
|
|
March
31, 2023
|
|
March
31, 2023
|
RMB
(million)
|
|
RMB
(million)
|
|
RMB
(million)
|
|
USD
(million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
(1,001)
|
|
2,080
|
|
3,374
|
|
491
|
Less: Interest
income
|
|
(591)
|
|
(458)
|
|
(441)
|
|
(64)
|
Add: Interest
expense
|
|
341
|
|
427
|
|
486
|
|
71
|
Add: Other
expense/(income)
|
|
707
|
|
(2,745)
|
|
(1,652)
|
|
(241)
|
Add: Income tax
(benefit)/expense
|
|
(14)
|
|
246
|
|
341
|
|
50
|
Add: Equity in loss of
affiliates
|
|
199
|
|
210
|
|
133
|
|
19
|
(Loss)/income from
operations
|
|
(359)
|
|
(240)
|
|
2,241
|
|
326
|
Add: Share-based
compensation
|
|
223
|
|
310
|
|
378
|
|
55
|
Add: Depreciation and
amortization
|
|
227
|
|
216
|
|
201
|
|
29
|
Adjusted
EBITDA
|
|
91
|
|
286
|
|
2,820
|
|
410
|
Adjusted EBITDA
margin
|
|
2 %
|
|
6 %
|
|
31 %
|
|
31 %
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to Trip.com Group Limited
|
|
(989)
|
|
2,057
|
|
3,375
|
|
491
|
Add: Share-based
compensation
|
|
223
|
|
310
|
|
378
|
|
55
|
Add: Loss/(gain) from
fair value changes of equity securities
investments and exchangeable senior notes
|
|
785
|
|
(1,945)
|
|
(1,648)
|
|
(240)
|
Add: Tax effects on
fair value changes of equity securities
investments and exchangeable senior notes
|
|
(55)
|
|
76
|
|
(40)
|
|
(6)
|
Non-GAAP net
(loss)/income attributable to Trip.com Group
Limited
|
|
(36)
|
|
498
|
|
2,065
|
|
300
|
Weighted average
ordinary shares outstanding-
Diluted-non GAAP
|
|
647,812,835
|
|
658,571,739
|
|
672,743,729
|
|
672,743,729
|
Non-GAAP Diluted
(losses)/income per share
|
|
(0.06)
|
|
0.76
|
|
3.07
|
|
0.45
|
Non-GAAP Diluted
(losses)/income per ADS
|
|
(0.06)
|
|
0.76
|
|
3.07
|
|
0.45
|
|
|
|
|
|
|
|
|
|
Notes for all the
condensed consolidated financial schedules presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: The conversion
of Renminbi (RMB) into U.S. dollars (USD) is based on the certified
exchange rate of USD1.00=RMB6.8676 on March 31, 2023 published by
the
Federal Reserve Board.
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/tripcom-group-limited-reports-unaudited-first-quarter-of-2023-financial-results-301844756.html
SOURCE Trip.com Group Limited