新聞稿

Trip.com Group Limited Reports Unaudited Second Quarter and First Half of 2022 Financial Results

SHANGHAI, Sept. 21, 2022 /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 second quarter and first half of 2022.

Key Highlights for the Second Quarter of 2022

The Company delivered resilient results in the second quarter despite the continued disruptions resulting from the COVID-19 resurgence in China.

  • Net income for the second quarter was RMB43 million (US$6 million), which improved from net loss of RMB1.0 billion for the previous quarter.
  • Adjusted EBITDA for the second quarter was RMB355 million (US$53 million), representing a 290% increase from RMB91 million for the previous quarter,
  • Staycation travel continued to serve as a major contributor to the recovery of the Chinese domestic market, with local hotel bookings increasing by over 30% compared to the same period in 2019.
  • Both air-ticket and hotel bookings on global platforms increased over 100% year over year in the second quarter.

"In the second quarter, the global travel industry has made continued progress towards full recovery. The recovery momentum in Europe and the United States remained robust, and the rebound of travel activities in the Asia-Pacific region also sped up due to further relaxation of travel restrictions," said James Liang, Executive Chairman. "With our product innovation and service enhancement, we are confident in further strengthening our competitive position and capturing the pent-up demand. "

"Despite the challenges in the China domestic market in the first two months of the second quarter, the fundamental demand for travel remained solid. We are delighted to see the domestic hotel bookings quickly bouncing back to the pre-pandemic level at the end of the second quarter with such momentum extended into the following months." said Jane Sun, Chief Executive Officer. "We will continue to improve our operating efficiency and conduct prudent cost control in the face of the changing environment. All these efforts will enable us to remain flexible and pave the way for long-term growth."

Second Quarter of 2022 Financial Results and Business Updates

In the second quarter of 2022, the COVID-19 resurgence continued to disrupt the travel industry in China, which discouraged user demand for the Company's services. As a result, the Company's results of operations for the second quarter of 2022 were materially and adversely affected.

For the second quarter of 2022, Trip.com Group reported net revenue of RMB4.0 billion (US$598 million), representing a 32% decrease from the same period in 2021 and a 2% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence in China.

Accommodation reservation revenue for the second quarter of 2022 was RMB1.4 billion (US$203 million), representing a 45% decrease from the same period in 2021 and a 6% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence in China.

Transportation ticketing revenue for the second quarter of 2022 was RMB1.8 billion (US$263 million), representing a 15% decrease from the same period in 2021, primarily due to the continued disruptions resulting from the COVID-19 resurgence in China. Transportation ticketing revenue increased by 6% from the previous quarter, primarily driven by strong recovery of air travel in the overseas market.

Packaged-tour revenue for the second quarter of 2022 was RMB122 million (US$18 million), representing a 67% decrease from the same period in 2021 and a 2% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence in China.

Corporate travel revenue for the second quarter of 2022 was RMB210 million (US$31 million), representing a 46% decrease from the same period in 2021 and a 5% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence in China.

Cost of revenue for the second quarter of 2022 was RMB976 million (US$146 million), representing a 20% decrease from the same period in 2021, which was in line with the decrease in net revenue. Cost of revenue decreased by 9% from the previous quarter. Cost of revenue as a percentage of net revenue was 24% for the second quarter of 2022.

Product development expenses for the second quarter of 2022 decreased by 20% to RMB1.8 billion (US$264 million) from the same period in 2021 and decreased by 10% from the previous quarter, primarily due to a decrease in product development personnel related expenses. Product development expenses as a percentage of net revenue was 44% for the second quarter of 2022.

Sales and marketing expenses for the second quarter of 2022 decreased by 41% to RMB826 million (US$123 million) from the same period in 2021 and decreased by 2% from the previous quarter, primarily due to a decrease in expenses relating to sales and marketing promotion activities. Sales and marketing expenses as a percentage of net revenue was 21% for the second quarter of 2022.

General and administrative expenses for the second quarter of 2022 decreased by 15% to RMB604 million (US$90 million) from the same period in 2021, primarily due to a decrease in general and administrative personnel related expenses. General and administrative expenses increased by 3% from the previous quarter. General and administrative expenses as a percentage of net revenue was 15% for the second quarter of 2022.

Income tax expense for the second quarter of 2022 was RMB173 million (US$26 million), compared to income tax expense of RMB97 million for the same period in 2021 and income tax benefit of RMB14 million in 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 second quarter of 2022 was RMB43 million (US$6 million), compared to net loss of RMB659 million for the same period in 2021 and net loss of RMB1 billion for the previous quarter. Adjusted EBITDA for the second quarter of 2022 was RMB355 million (US$53 million), compared to RMB916 million for the same period in 2021 and RMB91 million for the previous quarter. Adjusted EBITDA margin was 9% for the second quarter of 2022, compared to 16% for the same period in 2021 and 2% for the previous quarter.

Net income attributable to Trip.com Group's shareholders for the second quarter of 2022 was RMB69 million (US$10 million), compared to net loss attributable to Trip.com Group's shareholders of RMB647 million for the same period in 2021 and net loss attributable to Trip.com Group's shareholders of RMB989 million 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 loss attributable to Trip.com Group's shareholders was RMB203 million (US$31 million), compared to non-GAAP net income attributable to Trip.com Group's shareholders of RMB728 million in the same period in 2021 and non-GAAP net loss attributable to Trip.com Group's shareholders of RMB36 million for the previous quarter.

Diluted income per ordinary share and per ADS was RMB0.10 (US$0.01) for the second quarter of 2022. Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes and their tax effects, non-GAAP diluted loss per ordinary share and per ADS was RMB0.31 (US$0.05) for the second quarter of 2022. Each ADS currently represents one ordinary share of the Company.

As of June 30, 2022, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products was RMB65.6 billion (US$9.8 billion).

Conference Call

Trip.com Group's management team will host a conference call at 8:00 PM EST on September 21, 2022 (or 8:00 AM CST on September 22, 2022) 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/BIe6a1088f8c3f4a77a18a7d5b03d2bc2e

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, the impact of COVID-19 pandemic to Trip.com Group's business operations, 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, 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 Trip.com Group's affiliated Chinese entities and the contractual arrangements among Trip.com Group, its affiliated Chinese 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 unaudited condensed consolidated financial statements 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 and fair value changes of equity securities investments and exchangeable senior notes, net of tax. 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, 2021

 

June 30, 2022

 

June 30, 2022

 

RMB (million)

RMB (million)

USD (million)

       
       
               
 
 

ASSETS

           
 

Current assets:

           
 

Cash, cash equivalents and restricted cash

 

21,196

 

22,959

 

3,427

 

Short-term investments

 

29,566

 

30,721

 

4,587

 

Accounts receivable, net 

 

4,649

 

5,445

 

813

 

Prepayments and other current assets 

 

10,697

 

10,778

 

1,609

               
 

Total current assets

 

66,108

 

69,903

 

10,436

               
 

Property, equipment and software

 

5,534

 

5,307

 

792

 

Intangible assets and land use rights

 

13,046

 

12,929

 

1,931

 

Right-of-use assets

 

777

 

925

 

138

 

Investments (Includes held to maturity time deposit and
financial products of RMB13,112 million and RMB11,891
million as of December 31,2021 and June 30, 2022,
respectively)

 

44,961

 

44,075

 

6,580

 

Goodwill

 

59,353

 

59,326

 

8,857

 

Other long-term assets

 

396

 

398

 

60

 

Deferred tax asset

 

1,684

 

1,765

 

263

               
 

Total assets

 

191,859

 

194,628

 

29,057

               
 

LIABILITIES

           
 

Current liabilities:

           
 

Short-term debt and current portion of long-term debt

 

39,866

 

36,203

 

5,405

 

Accounts payable

 

6,019

 

6,745

 

1,007

 

Advances from customers

 

7,535

 

7,822

 

1,168

 

Other current liabilities

 

12,798

 

11,926

 

1,781

 

Total current liabilities

 

66,218

 

62,696

 

9,361

               
 

Deferred tax liability

 

3,527

 

3,491

 

521

 

Long-term debt

 

11,093

 

17,402

 

2,598

 

Long-term lease liability

 

400

 

591

 

88

 

Other long-term liabilities

 

165

 

170

 

25

               
 

Total liabilities

 

81,403

 

84,350

 

12,593

               
 

SHAREHOLDERS' EQUITY

           
               
 

Total Trip.com Group Limited shareholders' equity

 

109,677

 

109,542

 

16,354

               
 

Non-controlling interests

 

779

 

736

 

110

               
 

Total shareholders' equity

 

110,456

 

110,278

 

16,464

               
 

Total liabilities and shareholders' equity

 

191,859

 

194,628

 

29,057

 

 

 

Trip.com Group Limited

                           

Unaudited Consolidated Statements of Income/(Loss)

                       

(In millions, except share and per share data)

                       
                               
     

Three Months Ended

 

Six Months Ended

 

June 30, 2021

 

March 31, 2022

 

June 30, 2022

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

June 30, 2022

 

RMB (million)

 

RMB (million)

 

RMB (million)

 

USD (million)

 

RMB (million)

 

RMB (million)

 

USD (million)

                           
                           
                               
 
 

Revenue:

                           
 

Accommodation reservation 

 

2,455

 

1,450

 

1,357

 

203

 

4,035

 

2,807

 

419

 

Transportation ticketing 

 

2,066

 

1,663

 

1,763

 

263

 

3,572

 

3,426

 

512

 

Packaged-tour 

 

367

 

124

 

122

 

18

 

536

 

246

 

37

 

Corporate travel

 

390

 

222

 

210

 

31

 

642

 

432

 

64

 

Others

 

614

 

652

 

564

 

84

 

1,216

 

1,216

 

181

                               
 

Total revenue

 

5,892

 

4,111

 

4,016

 

599

 

10,001

 

8,127

 

1,213

                               
 

Less: Sales tax and surcharges

 

(2)

 

(2)

 

(5)

 

(1)

 

(3)

 

(7)

 

(1)

                               
 

Net revenue

 

5,890

 

4,109

 

4,011

 

598

 

9,998

 

8,120

 

1,212

                               
 

Cost of revenue

 

(1,223)

 

(1,067)

 

(976)

 

(146)

 

(2,257)

 

(2,043)

 

(305)

                               
 

Gross profit

 

4,667

 

3,042

 

3,035

 

452

 

7,741

 

6,077

 

907

                               
 

Operating expenses:

                           
 

Product development *

 

(2,226)

 

(1,974)

 

(1,772)

 

(264)

 

(4,451)

 

(3,746)

 

(559)

 

Sales and marketing *

 

(1,402)

 

(843)

 

(826)

 

(123)

 

(2,354)

 

(1,669)

 

(249)

 

General and administrative *

 

(713)

 

(584)

 

(604)

 

(90)

 

(1,397)

 

(1,188)

 

(178)

                               
 

Total operating expenses

 

(4,341)

 

(3,401)

 

(3,202)

 

(477)

 

(8,202)

 

(6,603)

 

(986)

                               
 

Income/(Loss) from operations

 

326

 

(359)

 

(167)

 

(25)

 

(461)

 

(526)

 

(79)

                               
 

Interest income 

 

472

 

591

 

544

 

81

 

890

 

1,135

 

169

 

Interest expense

 

(418)

 

(341)

 

(351)

 

(52)

 

(825)

 

(692)

 

(103)

 

Other (expense)/income

 

(848)

 

(707)

 

469

 

70

 

1,660

 

(238)

 

(35)

                               
 

(Loss)/Income before income tax
expense and equity in income of
affiliates

 

(468)

 

(816)

 

495

 

74

 

1,264

 

(321)

 

(48)

                               
 

Income tax (expense)/benefit

 

(97)

 

14

 

(173)

 

(26)

 

(138)

 

(159)

 

(24)

 

Equity in loss of affiliates

 

(94)

 

(199)

 

(279)

 

(42)

 

(20)

 

(478)

 

(71)

                               
 

Net (loss)/income

 

(659)

 

(1,001)

 

43

 

6

 

1,106

 

(958)

 

(143)

                               
 

Net loss attributable to non-controlling interests

 

12

 

12

 

26

 

4

 

27

 

38

 

6

                               
 

Net (loss)/income attributable to
Trip.com Group Limited

 

(647)

 

(989)

 

69

 

10

 

1,133

 

(920)

 

(137)

                               
 

(Losses)/Earnings per ordinary share

                           
 

- Basic

 

(1.02)

 

(1.52)

 

0.10

 

0.01

 

1.76

 

(1.42)

 

(0.21)

 

- Diluted

 

(1.02)

 

(1.52)

 

0.10

 

0.01

 

1.73

 

(1.42)

 

(0.21)

                               
 

(Losses)/Earnings per ADS

                           
 

- Basic

 

(1.02)

 

(1.52)

 

0.10

 

0.01

 

1.76

 

(1.42)

 

(0.21)

 

- Diluted

 

(1.02)

 

(1.52)

 

0.10

 

0.01

 

1.73

 

(1.42)

 

(0.21)

                               
 

Weighted average ordinary shares outstanding

                           
 

- Basic

 

635,476,056

 

647,812,835

 

647,866,001

 

647,866,001

 

644,666,248

 

647,843,829

 

647,843,829

 

- Diluted

 

635,476,056

 

647,812,835

 

650,906,465

 

650,906,465

 

656,483,984

 

647,843,829

 

647,843,829

                               
 

* Share-based compensation included in Operating expenses above is as follows:

               
 

  Product development 

 

181

 

107

 

146

 

22

 

332

 

253

 

38

 

  Sales and marketing 

 

34

 

18

 

28

 

4

 

56

 

46

 

7

 

  General and administrative 

 

151

 

98

 

130

 

19

 

272

 

228

 

34

 

 

 

Trip.com Group Limited

                           

Unaudited reconciliation of  GAAP and Non-GAAP Results

                           

(In millions, except % and per share data)

                           
                               
     

Three Months Ended

 

Six Months Ended

 

June 30, 2021

 

March 31, 2022

 

June 30, 2022

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

June 30, 2022

 

RMB (million)

 

RMB (million)

 

RMB (million)

 

USD (million)

 

RMB (million)

 

RMB (million)

 

USD (million)

                           
                           
                               
 
 

Net (loss)/income

 

(659)

 

(1,001)

 

43

 

6

 

1,106

 

(958)

 

(143)

 

Less: Interest income

 

(472)

 

(591)

 

(544)

 

(81)

 

(890)

 

(1,135)

 

(169)

 

Add: Interest expense

 

418

 

341

 

351

 

52

 

825

 

692

 

103

 

Add: Other expense/(income)

 

848

 

707

 

(469)

 

(70)

 

(1,660)

 

238

 

35

 

Add: Income tax expense/(benefit)

 

97

 

(14)

 

173

 

26

 

138

 

159

 

24

 

Add: Equity in loss of affiliates

 

94

 

199

 

279

 

42

 

20

 

478

 

71

 

Income/(Loss) from operations

 

326

 

(359)

 

(167)

 

(25)

 

(461)

 

(526)

 

(79)

 

Add: Share-based compensation

 

366

 

223

 

304

 

45

 

660

 

527

 

79

 

Add: Depreciation and amortization

 

224

 

227

 

218

 

33

 

501

 

445

 

66

 

Adjusted EBITDA

 

916

 

91

 

355

 

53

 

700

 

446

 

66

 

Adjusted EBITDA margin

 

16 %

 

2 %

 

9 %

 

9 %

 

7 %

 

5 %

 

5 %

                               
 

Net (loss)/income attributable to Trip.com Group Limited

 

(647)

 

(989)

 

69

 

10

 

1,133

 

(920)

 

(137)

 

Add: Share-based compensation

 

366

 

223

 

304

 

45

 

660

 

527

 

79

 

Add: Loss/(Gain) from fair value changes of equity securities investments
and exchangeable senior notes

 

1,053

 

785

 

(668)

 

(100)

 

(1,314)

 

117

 

17

 

Add: Tax effects on fair value changes of equity securities investments and
exchangeable senior notes

 

(44)

 

(55)

 

92

 

14

 

45

 

37

 

6

 

Non-GAAP net income/(loss) attributable to Trip.com Group Limited

 

728

 

(36)

 

(203)

 

(31)

 

524

 

(239)

 

(35)

 

Weighted average ordinary shares outstanding- Diluted-non GAAP 

 

645,021,131

 

647,812,835

 

647,866,001

 

647,866,001

 

656,483,984

 

647,843,829

 

647,843,829

 

Non-GAAP Diluted income/(losses) per share

 

1.13

 

(0.06)

 

(0.31)

 

(0.05)

 

0.80

 

(0.37)

 

(0.06)

 

Non-GAAP Diluted income/(losses) per ADS

 

1.13

 

(0.06)

 

(0.31)

 

(0.05)

 

0.80

 

(0.37)

 

(0.06)

                               
 

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=RMB6.6981 on June 30, 2022 published by the Federal Reserve Board.

 

Cision View original content:https://www.prnewswire.com/news-releases/tripcom-group-limited-reports-unaudited-second-quarter-and-first-half-of-2022-financial-results-301629661.html

SOURCE Trip.com Group Limited