(MENAFN- PR Newswire) SHANGHAI, Feb. 21, 2024 /PRNewswire/ -- Trip Group Limited (Nasdaq: TCOM ; HKEX: 9961) ("Trip 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 fourth quarter and full year of 2023.

Key Highlights for the Fourth Quarter and Full Year of 2023

• Domestic and international businesses continued to show robust recovery in the fourth quarter of 2023
  
  • Domestic hotel reservations grew by over 130% year over year.
  • Outbound hotel and air reservations both recovered to over 80% of the pre-COVID level for the same period in 2019, compared to a 60% industry recovery in terms of international air passenger volume for the same period.
  • Total bookings on the Company's global OTA platform have increased by over 70% year over year.
• The Company delivered strong financial results in the fourth quarter of 2023
  
  • Net revenue for the fourth quarter grew by 105% compared to the same period in 2022.
    
  • Net income for the fourth quarter was RMB1.3 billion (US$189 million).
  • Adjusted EBITDA for the fourth quarter was RMB2.9 billion (US$401 million). Adjusted EBITDA margin was 28%, improved from 6% for the same period in 2022.

"In 2023, China embarked on a significant journey of reconnecting with the world driven by the rising travel sentiment. Our global business also experienced substantial growth fueled by our expanded market presence," said James Liang, Executive Chairman. "With a continued focus on globalization and AI innovations, we are confident to build upon the success of 2023 and further explore the opportunities that lie ahead."

"We are pleased with the strong results achieved across our business segments in the past year," said Jane Sun, Chief Executive Officer. "The global travel industry has shown remarkable resilience and is poised to sustain its growth trajectory. To capitalize on this trend and unlock new opportunities, we remain committed to investing in technology and product innovation, enhancing customer services, and promoting sustainable development of the travel industry."

Fourth Quarter and Full Year of 2023 Financial Results and Business Updates

The Company's business has recovered significantly due to the resilient travel demand, leading to a surge in travel bookings year over year.

For the fourth quarter of 2023, Trip Group reported net revenue of RMB10.3 billion (US$1.5 billion), representing a 105% increase from the same period in 2022 primarily due to substantial recovery of travel market. Net revenue for the fourth quarter of 2023 decreased by 25% from the previous quarter, primarily due to seasonality.

For the full year of 2023, net revenue was RMB44.5 billion (US$6.3 billion), representing a 122% increase from 2022.

Accommodation reservation revenue for the fourth quarter of 2023 was RMB3.9 billion (US$550 million), representing a 131% increase from the same period in 2022 primarily due to substantial recovery of travel market.
Accommodation reservation revenue for the fourth quarter of 2023 decreased by 30% from the previous quarter, primarily due to seasonality.

For the full year of 2023, accommodation reservation revenue was RMB17.3 billion (US$2.4 billion), representing a 133% increase from 2022. The accommodation reservation revenue accounted for 39% of the total revenue in 2023 and 37% of the total revenue in 2022.

Transportation ticketing revenue for the fourth
quarter of 2023
was RMB4.1 billion (US$578 million), representing an 86% increase from the same period in 2022 primarily due to substantial recovery of travel market. Transportation ticketing revenue
for the fourth
quarter of 2023 decreased by 23% from the previous quarter, primarily due to seasonality.

For the full year of 2023, transportation ticketing revenue was RMB18.4 billion (US$2.6 billion), representing a 123% increase from 2022. The transportation ticketing revenue accounted for 41% of the total revenue both in 2023 and 2022.

Packaged-tour revenue for the fourth
quarter of 2023 was RMB704
million (US$99
million), representing a 329% increase from the same period in 2022 primarily due to substantial recovery of travel market.
Packaged-tour revenue for the fourth
quarter of 2023 decreased by 47% from the previous quarter, primarily due to seasonality.

For the full year of 2023, packaged-tour revenue was RMB3.1 billion (US$442 million), representing a 294% increase from 2022. The packaged-tour revenue accounted for 7% of the total revenue in 2023 and 4% of the total revenue in 2022.

Corporate travel revenue for the fourth quarter of 2023 was RMB634
million (US$89 million), representing a
129% increase from the same period in 2022 and a 7% increase from the previous quarter,
primarily due to substantial recovery of travel market.

For the full year of 2023, corporate travel revenue was RMB2.3 billion (US$317 million), representing a 109% increase from 2022. The corporate travel revenue accounted for 5% of the total revenue both in 2023 and 2022.

Cost of revenue for the fourth
quarter of 2023 increased by 68% to RMB2.0 billion (US$283 million) from the same period in 2022 and decreased by 19% from the previous quarter, which was in line with the increase in net revenue. Cost of revenue as a percentage of net revenue was 19% for the fourth quarter of 2023.

For the full year of 2023, cost of revenue increased by 80% to RMB8.1 billion (US$1.1 billion), compared to that for 2022, which accounted for 18% of net revenue in 2023.

Product development expenses for the fourth
quarter of 2023
increased by 39% to RMB2.9
billion (US$411 million) from the same period in 2022 and decreased by 18% from the previous quarter, primarily due to the fluctuations in product development personnel related expenses. Product development expenses as a percentage of net revenue
was 28% for the fourth
quarter of 2023.

For the full year of 2023, product development expenses increased by 45% to RMB12.1 billion (US$1.7 billion) from 2022, which accounted for 27% of net revenue in 2023.

Sales and marketing expenses for the fourth
quarter of 2023 increased by 103% to RMB2.3 billion (US$329 million) from the same period in 2022 and decreased by 15% from the previous quarter, primarily due to the fluctuations in expenses relating to sales and marketing promotion activities. Sales and marketing expenses as a percentage of net revenue was 23% for the fourth
quarter of 2023.

For the full year of 2023, sales and marketing expenses increased by 117% to RMB9.2 billion (US$1.3 billion) from 2022, which accounted for 21% of net revenue in 2023.

General and administrative expenses for the fourth quarter of 2023 increased by 6% to RMB869 million (US$122
million) from the same period in 2022. General and administrative expenses for the fourth
quarter of 2023 decreased by 15% from the previous quarter primarily due to a decrease in general and administrative personnel related expenses. General and administrative expenses
as a percentage of net revenue was
8% for the fourth
quarter of 2023.

For the full year of 2023, general and administrative expenses increased by 31% to RMB3.7 billion (US$527 million) from 2022, which accounted for 8% of net revenue in 2023.

Income tax expense for the fourth quarter of 2023 was RMB399 million (US$56 million), compared to RMB246 million for the same period in 2022 and RMB448 million for the previous quarter. The change in Trip Group's effective tax rate was primarily due to the combined impacts of changes in respective profitability of its subsidiaries with different tax rates, changes in deferred tax liabilities relating to withholding tax, certain non-taxable income or loss resulting from the fair value changes in equity securities investments and exchangeable senior notes recorded in other income/(expense), and changes in valuation allowance provided for deferred tax assets.

For the full year of 2023, income tax expense was RMB1.8 billion (US$246 million), compared to RMB682 million in 2022.

Net income for the fourth quarter of 2023 was RMB1.3 billion (US$189 million), compared to RMB2.1 billion for the same period in 2022 and RMB4.6 billion for the previous quarter. Adjusted EBITDA for the fourth quarter of 2023 was RMB2.9
billion (US$401
million), compared to RMB286 million for the same period in 2022 and RMB4.6 billion for the previous quarter. Adjusted EBITDA margin was 28% for the fourth quarter of 2023, compared to 6% for the same period in 2022 and 34% for the previous quarter.

For the full year of 2023, net income was RMB10.0 billion (US$1.4 billion), compared to RMB1.4 billion in 2022.

Net income attributable to Trip Group's shareholders for the fourth quarter of 2023 was RMB1.3 billion (US$183 million), compared to RMB2.1 billion for the same period in 2022 and RMB4.6 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 Group's shareholders for the fourth quarter of 2023 was RMB2.7 billion (US$376 million), compared to RMB498 million for the same period in 2022 and RMB4.9 billion for the previous quarter.

For the full year of 2023, net income attributable to Trip Group's shareholders was RMB9.9 billion (US$1.4 billion), compared to RMB1.4 billion in 2022. 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 Group's shareholders was RMB13.1 billion (US$1.8 billion) in 2023, compared to RMB1.3 billion in 2022.

Diluted earnings per ordinary share and per ADS was RMB1.94
(US$0.27) for the fourth quarter of 2023. 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 diluted earnings per ordinary share and per ADS was RMB4.00
(US$0.56) for the fourth quarter of 2023. Each ADS currently represents one ordinary share of the Company.

For the full year of 2023, diluted earnings per share and per ADS was RMB14.78 (US$2.08). 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 diluted earnings per share and per ADS was RMB19.48 (US$2.74).

As of December 31, 2023, the balance of cash and cash equivalents, restricted cash, short-term investment, and held to maturity time deposit and financial products was RMB77.3 billion (US$10.9 billion).

Recent Development

From September 2023 to the date of this press release, the Company purchased 6.8 million ADSs in aggregate with a total gross consideration of US$224 million pursuant to its existing share repurchase plan.

Pursuant to the regular capital return policy adopted by the Company's board of directors in November 2023, in February 2024, the board of directors of the Company approved and authorized the Company to implement strategic capital return initiatives from time to time for an aggregate value up to US$300 million (the "2024 Capital Return Program"). The 2024 Capital Return Program permit discretionary annual share repurchases, discretionary annual cash dividends, or a combination of both.

Conference Call

Trip Group's management team will host a conference call at 7:00 PM EST on February
21, 2024 (or 8:00 AM CST on February 22, 2024) following this announcement.

The conference call will be available live on Webcast and for replay at: 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:

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 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 Group's ADSs or shares, Trip 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 Group operates, failure to successfully develop Trip Group's existing or future business lines, damage to or failure of Trip Group's infrastructure and technology, loss of services of Trip Group's key executives, the impact of COVID-19 to Trip 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 Group, the variable interest entities and their shareholders, and other risks outlined in Trip 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 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 Group's consolidated financial statements, which are prepared and presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Trip Group uses non-GAAP financial information related to adjusted net income attributable to Trip 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 recorded in other income/(expense), net of tax, and other applicable items. Trip 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 recorded in other income/(expense), and their tax effects that have been and will continue to be significant recurring expenses in Trip Group's business for the foreseeable future.

Reconciliations of Trip 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 Group Limited

Trip 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, and Skyscanner, with the mission "to pursue the perfect trip for a better world."

For further information, please contact:

Investor Relations
Trip Group Limited
Tel: +86 (21) 3406-4880 X 12229
Email: [email protected]

Trip Group Limited
Unaudited Consolidated Balance Sheets
(In millions, except share and per share data)
			December 31, 2022		December 31, 2023		December 31, 2023
	RMB (million)	RMB (million)	USD (million)
	ASSETS
	Current assets:
	Cash, cash equivalents and restricted cash		18,487		43,983		6,195
	Short-term investments		25,545		17,748		2,500
	Accounts receivable, net		5,486		11,410		1,607
	Prepayments and other current assets		11,917		15,591		2,196
	Total current assets		61,435		88,732		12,498
	Property, equipment and software		5,204		5,142		724
	Intangible assets and land use rights		12,825		12,644		1,781
	Right-of-use asset		819		641		90
	Investments (Includes held to maturity time deposit and financial products of RMB15,527 million and RMB15,530 million as of December 31,2022 and December 31, 2023, respectively)		50,177		49,342		6,950
	Goodwill		59,337		59,372		8,362
	Other long-term assets		570		688		97
	Deferred tax asset		1,324		2,576		363
	Total assets		191,691		219,137		30,865
	LIABILITIES
	Current liabilities:
	Short-term debt and current portion of long-term debt		32,674		25,857		3,642
	Accounts payable		7,569		16,459		2,318
	Advances from customers		8,278		13,380		1,885
	Other current liabilities		12,718		16,715		2,354
	Total current liabilities		61,239		72,411		10,199
	Deferred tax liability		3,487		3,825		539
	Long-term debt		13,177		19,099		2,690
	Long-term lease liability		534		477		67
	Other long-term liabilities		235		319		45
	Total liabilities		78,672		96,131		13,540
	SHAREHOLDERS' EQUITY
	Total Trip Group Limited shareholders' equity		112,283		122,184		17,209
	Non-controlling interests		736		822		116
	Total shareholders' equity		113,019		123,006		17,325
	Total liabilities and shareholders' equity		191,691		219,137		30,865

Trip Group Limited
Unaudited Consolidated Statements of Income/(Loss)
(In millions, except share and per share data)
			Three Months Ended		Year Ended
	December 31, 2022		September 30, 2023		December 31, 2023		December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2023
	RMB (million)		RMB (million)		RMB (million)		USD (million)		RMB (million)		RMB (million)		USD (million)
	Revenue:
	Accommodation reservation		1,689		5,589		3,903		550		7,400		17,257		2,431
	Transportation ticketing		2,204		5,367		4,106		578		8,253		18,443		2,598
	Packaged-tour		164		1,328		704		99		797		3,140		442
	Corporate travel		277		591		634		89		1,079		2,254		317
	Others		697		876		991		140		2,526		3,468		488
	Total revenue		5,031		13,751		10,338		1,456		20,055		44,562		6,276
	Less: Sales tax and surcharges		(4)		(11)		(13)		(2)		(16)		(52)		(7)
	Net revenue		5,027		13,740		10,325		1,454		20,039		44,510		6,269
	Cost of revenue		(1,199)		(2,467)		(2,010)		(283)		(4,513)		(8,121)		(1,144)
	Gross profit		3,828		11,273		8,315		1,171		15,526		36,389		5,125
	Operating expenses:
	Product development *		(2,104)		(3,577)		(2,916)		(411)		(8,341)		(12,120)		(1,707)
	Sales and marketing *		(1,148)		(2,759)		(2,333)		(329)		(4,250)		(9,202)		(1,296)
	General and administrative *		(816)		(1,028)		(869)		(122)		(2,847)		(3,743)		(527)
	Total operating expenses		(4,068)		(7,364)		(6,118)		(862)		(15,438)		(25,065)		(3,530)
	(Loss)/income from operations		(240)		3,909		2,197		309		88		11,324		1,595
	Interest income		458		543		593		84		2,046		2,090		294
	Interest expense		(427)		(529)		(497)		(70)		(1,514)		(2,067)		(291)
	Other income/(expense)		2,745		545		(903)		(127)		2,015		(667)		(94)
	Income before income tax expense and equity in (loss)/income of affiliates		2,536		4,468		1,390		196		2,635		10,680		1,504
	Income tax expense		(246)		(448)		(399)		(56)		(682)		(1,750)		(246)
	Equity in (loss)/gain of affiliates		(210)		618		351		49		(586)		1,072		151
	Net income		2,080		4,638		1,342		189		1,367		10,002		1,409
	Net (income)/loss attributable to non- controlling interests		(23)		(23)		(45)		(6)		36		(84)		(12)
	Net income attributable to Trip Group Limited		2,057		4,615		1,297		183		1,403		9,918		1,397
	Earnings per ordinary share
	- Basic		3.17		7.05		1.99		0.28		2.17		15.19		2.14
	- Diluted		3.12		6.84		1.94		0.27		2.14		14.78		2.08
	Earnings per ADS
	- Basic		3.17		7.05		1.99		0.28		2.17		15.19		2.14
	- Diluted		3.12		6.84		1.94		0.27		2.14		14.78		2.08
	Weighted average ordinary shares outstanding
	- Basic		649,893,734		654,146,029		652,033,082		652,033,082		648,380,590		652,859,211		652,859,211
	- Diluted		658,660,803		674,134,652		668,332,395		668,332,395		657,092,826		671,062,240		671,062,240
	* Share-based compensation included in Operating expenses above is as follows:
	Product development		147		242		215		30		567		870		123
	Sales and marketing		37		44		39		5		115		158		22
	General and administrative		126		223		196		28		506		806		113

Trip Group Limited
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In millions, except %, share and per share data)
			Three Months Ended		Year Ended
	December 31, 2022		September 30, 2023		December 31, 2023		December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2023
	RMB (million)		RMB (million)		RMB (million)		USD (million)		RMB (million)		RMB (million)		USD (million)
	Net income		2,080		4,638		1,342		189		1,367		10,002		1,409
	Less: Interest income		(458)		(543)		(593)		(84)		(2,046)		(2,090)		(294)
	Add: Interest expense		427		529		497		70		1,514		2,067		291
	Add: Other (income)/expense		(2,745)		(545)		903		127		(2,015)		667		94
	Add: Income tax expense		246		448		399		56		682		1,750		246
	Add: Equity in loss/(income) of affiliates		210		(618)		(351)		(49)		586		(1,072)		(151)
	(Loss)/income from operations		(240)		3,909		2,197		309		88		11,324		1,595
	Add: Share-based compensation		310		509		450		63		1,188		1,834		258
	Add: Depreciation and amortization		216		204		208		29		875		817		115
	Adjusted EBITDA		286		4,622		2,855		401		2,151		13,975		1,968
	Adjusted EBITDA margin		6 %		34 %		28 %		28 %		11 %		31 %		31 %
	Net income attributable to Trip Group Limited		2,057		4,615		1,297		183		1,403		9,918		1,397
	Add: Share-based compensation		310		509		450		63		1,188		1,834		258
	Add: (Gain)/loss from fair value changes of equity securities investments and exchangeable senior notes		(1,945)		(185)		989		139		(1,338)		1,507		212
	Add: Tax effects on fair value changes of equity securities investments and exchangeable senior notes		76		(42)		(61)		(9)		41		(188)		(26)
	Non-GAAP net income attributable to Trip Group Limited		498		4,897		2,675		376		1,294		13,071		1,841
	Weighted average ordinary shares outstanding- Diluted-non GAAP		658,571,739		674,134,652		668,332,395		668,332,395		657,092,826		671,062,240		671,062,240
	Non-GAAP Diluted income per share		0.76		7.26		4.00		0.56		1.97		19.48		2.74
	Non-GAAP Diluted income per ADS		0.76		7.26		4.00		0.56		1.97		19.48		2.74
	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=RMB7.0999 on December 29, 2023 published by the Federal Reserve Board.

SOURCE Trip Group Limited

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