Trip Group Limited Reports Unaudited First Quarter Of 2024 Financial Results

(MENAFN- PR Newswire) SINGAPORE, May 20, 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 first quarter of 2024.

Key Highlights for the First Quarter of 2024

• Both domestic and international businesses maintained robust growth momentum in the first quarter of 2024
  • Domestic hotel and air bookings each increased by over 20% year over year.
  • Outbound hotel and air bookings both increased by over 100% year over year.
  • Total revenue generated from the Company's global OTA platform,
    Trip, increased by around 80% year over year.

• The Company delivered strong results in the first quarter of 2024
  • Net revenue for the first quarter increased by 29% compared to the same period in 2023.
  • Net income for the first quarter was RMB4.3 billion (US$599 million), compared to RMB3.4 billion for the same period in 2023.
  • Adjusted EBITDA for the first quarter was RMB4.0 billion (US$550 million). Adjusted EBITDA margin was 33%, improved from 31% for the same period in 2023.

"The year 2024 has begun with a significant increase in both domestic and outbound travel demand in China, facilitated by a more stabilized supply and further relaxation of visa requirements," said James
Liang, Executive Chairman. "Additionally, our global business has experienced robust growth, driven by our improved product offerings. We are committed to investing in product and technology innovations to deliver a superior travel experience to our users."

"We are delighted to see that our first quarter results have demonstrated the resilience of the travel market and the strong execution of our team," said Jane Sun, Chief Executive Officer. "Recognizing the importance of creating a sustainable future, we are dedicated to generating greater value for our stakeholders by creating more job opportunities and contributing to the development of the travel industry through collaboration with our partners."

First Quarter 2024 Financial Results and Business Updates

For the first quarter of 2024, Trip Group reported net revenue of RMB11.9 billion (US$1.6 billion), representing a 29% increase from the same period in 2023. Net revenue for the first quarter of 2024 increased by 15% from the previous quarter, primarily due to seasonality.

Accommodation reservation revenue for the first quarter of 2024 was RMB4.5 billion (US$623 million), representing a 29% increase from the same period in 2023 primarily driven by an increase in accommodation reservations. Accommodation reservation revenue for the first quarter of 2024 increased by 15% from the previous quarter, primarily due to seasonality.

Transportation ticketing revenue for the first quarter of 2024 was RMB5.0 billion (US$692 million), representing a 20% increase from the same period in 2023 primarily driven by an increase in ticketing reservations. Transportation ticketing revenue for the first quarter of 2024 increased by 22% from the previous quarter, primarily due to seasonality.

Packaged-tour revenue for the first quarter of 2024 was RMB883 million (US$122 million), representing a 129% increase from the same period in 2023 primarily driven by an increase in packaged-tour reservations. Packaged-tour revenue for the first quarter of 2024 increased by 25% from the previous quarter, primarily due to seasonality.

Corporate travel revenue for the first quarter of 2024 was RMB511 million (US$71 million), representing a 15% increase from the same period in 2023 primarily driven by an increase in corporate travel reservations. Corporate travel revenue for the first quarter of 2024 decreased by 19% from the previous quarter, primarily due to seasonality as corporates clients generally have relatively mild traveling activities in the first quarter in light of the Chinese New Year holiday.

Cost of revenue for the first quarter of 2024 increased by 37% to RMB2.2 billion (US$310 million) from the same period in 2023 and increased by 11% from the previous quarter, which was generally in line with the increase in net revenue. Cost of revenue as a percentage of net revenue was 19% for the first quarter of 2024.

Product development expenses for the first quarter of 2024 increased by 16% to RMB3.1 billion (US$431 million) from the same period in 2023 and increased by 7% from the previous quarter, primarily due to the increase in product development personnel related expenses. Product development expenses as a percentage of net revenue was 26% for the first quarter of 2024.

Sales and marketing expenses for the first quarter of 2024 increased by 32% to RMB2.3 billion (US$320 million) from the same period in 2023 primarily due to the increase in expenses relating to sales and marketing promotion activities. Sales and marketing expenses remained relatively stable compared to the previous quarter. Sales and marketing expenses as a percentage of net revenue was 19% for the first quarter of 2024.

General and administrative expenses for the first quarter of 2024 increased by 4% to RMB931 million (US$129 million) from the same period in 2023 and increased by 7% from the previous quarter. General and administrative expenses as a percentage of net revenue was 8% for the first quarter of 2024.

Income tax expense for the first quarter of 2024 was RMB664 million (US$92 million), compared to RMB341 million for the same period in 2023 and RMB399 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.

Net income for the first quarter of 2024 was RMB4.3 billion (US$599 million), compared to RMB3.4 billion for the same period in 2023 and RMB1.3 billion for the previous quarter. Adjusted EBITDA for the first quarter of 2024 was RMB4.0 billion (US$550 million), compared to RMB2.8 billion for the same period in 2023 and RMB2.9 billion for the previous quarter. Adjusted EBITDA margin was 33% for the first quarter of 2024, compared to 31% for the same period in 2023 and 28% for the previous quarter.

Net income attributable to Trip Group's shareholders for the first quarter of 2024 was RMB4.3 billion (US$597 million), compared to RMB3.4 billion for the same period in 2023 and RMB1.3 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 first quarter of 2024 was RMB4.1 billion (US$561 million), compared to RMB2.1 billion for the same period in 2023 and RMB2.7 billion for the previous quarter.

Diluted earnings per ordinary share and per ADS was RMB6.38 (US$0.88) for the first quarter of 2024. 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 RMB6.00 (US$0.83) for the first quarter of 2024. Each ADS currently represents one ordinary share of the Company.

As of March 31, 2024, the balance of cash and cash equivalents, restricted cash, short-term investment, and held to maturity time deposit and financial products was RMB81.9 billion (US$11.3 billion).

Conference Call

Trip Group's management team will host a conference call at 8:00 PM EST on May 20, 2024 (or 8:00 AM CST on May 21, 2024) following this announcement.

The conference call will be available live on Webcast and for replay at:
. 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, adverse changes in economic and business conditions in the relevant jurisdictions where Trip Group operates, any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Trip Group 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, 2023		March 31, 2024		March 31, 2024
	RMB (million)	RMB (million)	USD (million)
	ASSETS
	Current assets:
	Cash, cash equivalents and restricted cash		43,983		44,773		6,201
	Short-term investments		17,748		25,507		3,533
	Accounts receivable, net		11,410		12,251		1,697
	Prepayments and other current assets		15,591		17,496		2,423
	Total current assets		88,732		100,027		13,854
	Property, equipment and software		5,142		5,103		707
	Intangible assets and land use rights		12,644		12,596		1,745
	Right-of-use asset		641		627		87
	Investments (Includes held to maturity time deposit and financial products of RMB15,530 million and RMB11,628 million as of December 31,2023 and March 31, 2024, respectively)		49,342		47,672		6,602
	Goodwill		59,372		59,377		8,224
	Other long-term assets		688		623		86
	Deferred tax asset		2,576		2,481		344
	Total assets		219,137		228,506		31,649
	LIABILITIES
	Current liabilities:
	Short-term debt and current portion of long-term debt		25,857		38,627		5,350
	Accounts payable		16,459		17,736		2,456
	Advances from customers		13,380		13,928		1,929
	Other current liabilities		16,715		16,516		2,288
	Total current liabilities		72,411		86,807		12,023
	Deferred tax liability		3,825		3,608		500
	Long-term debt		19,099		8,688		1,203
	Long-term lease liability		477		468		65
	Other long-term liabilities		319		326		45
	Total liabilities		96,131		99,897		13,836
	SHAREHOLDERS' EQUITY
	Total Trip Group Limited shareholders' equity		122,184		127,774		17,697
	Non-controlling interests		822		835		116
	Total shareholders' equity		123,006		128,609		17,813
	Total liabilities and shareholders' equity		219,137		228,506		31,649

Trip Group Limited
Unaudited Consolidated Statements of Income
(In millions, except share and per share data)
			Quarter ended		Quarter ended		Quarter ended		Quarter ended
	March 31, 2023		December 31, 2023		March 31, 2024		March 31, 2024
	RMB (million)		RMB (million)		RMB (million)		USD (million)
	Revenue:
	Accommodation reservation		3,480		3,903		4,496		623
	Transportation ticketing		4,156		4,106		5,000		692
	Packaged-tour		386		704		883		122
	Corporate travel		445		634		511		71
	Others		744		991		1,031		143
	Total revenue		9,211		10,338		11,921		1,651
	Less: Sales tax and surcharges		(13)		(13)		(16)		(2)
	Net revenue		9,198		10,325		11,905		1,649
	Cost of revenue		(1,637)		(2,010)		(2,238)		(310)
	Gross profit		7,561		8,315		9,667		1,339
	Operating expenses:
	Product development *		(2,674)		(2,916)		(3,109)		(431)
	Sales and marketing *		(1,755)		(2,333)		(2,312)		(320)
	General and administrative *		(891)		(869)		(931)		(129)
	Total operating expenses		(5,320)		(6,118)		(6,352)		(880)
	Income from operations		2,241		2,197		3,315		459
	Interest income		441		593		592		82
	Interest expense		(486)		(497)		(499)		(69)
	Other income/(expense)		1,652		(903)		759		105
	Income before income tax expense and equity in (loss)/income of affiliates		3,848		1,390		4,167		577
	Income tax expense		(341)		(399)		(664)		(92)
	Equity in (loss)/gain of affiliates		(133)		351		822		114
	Net income		3,374		1,342		4,325		599
	Net loss/(income) attributable to non-controlling interests		1		(45)		(13)		(2)
	Net income attributable to Trip Group Limited		3,375		1,297		4,312		597
	Earnings per ordinary share
	- Basic		5.18		1.99		6.62		0.92
	- Diluted		5.02		1.94		6.38		0.88
	Earnings per ADS
	- Basic		5.18		1.99		6.62		0.92
	- Diluted		5.02		1.94		6.38		0.88
	Weighted average ordinary shares outstanding
	- Basic		651,849,468		652,033,082		651,349,707		651,349,707
	- Diluted		672,743,729		668,332,395		675,933,592		675,933,592
	* Share-based compensation included in Operating expenses above is as follows:
	Product development		179		215		214		30
	Sales and marketing		31		39		38		5
	General and administrative		168		196		198		27

Trip Group Limited
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In millions, except %, share and per share data)
			Quarter ended		Quarter ended		Quarter ended		Quarter ended
	March 31, 2023		December 31, 2023		March 31, 2024		March 31, 2024
	RMB (million)		RMB (million)		RMB (million)		USD (million)
	Net income		3,374		1,342		4,325		599
	Less: Interest income		(441)		(593)		(592)		(82)
	Add: Interest expense		486		497		499		69
	Add: Other (income)/expense		(1,652)		903		(759)		(105)
	Add: Income tax expense		341		399		664		92
	Add: Equity in loss/(income) of affiliates		133		(351)		(822)		(114)
	Income from operations		2,241		2,197		3,315		459
	Add: Share-based compensation		378		450		450		62
	Add: Depreciation and amortization		201		208		209		29
	Adjusted EBITDA		2,820		2,855		3,974		550
	Adjusted EBITDA margin		31 %		28 %		33 %		33 %
	Net income attributable to Trip Group Limited		3,375		1,297		4,312		597
	Add: Share-based compensation		378		450		450		62
	Add: (Gain)/loss from fair value changes of equity securities investments and exchangeable senior notes		(1,648)		989		(679)		(94)
	Add: Tax effects on fair value changes of equity securities investments and exchangeable senior notes		(40)		(61)		(28)		(4)
	Non-GAAP net income attributable to Trip Group Limited		2,065		2,675		4,055		561
	Weighted average ordinary shares outstanding- Diluted-non GAAP		672,743,729		668,332,395		675,933,592		675,933,592
	Non-GAAP Diluted income per share		3.07		4.00		6.00		0.83
	Non-GAAP Diluted income per ADS		3.07		4.00		6.00		0.83
	Notes for all the condensed consolidated financial schedules presented:
	Note 1: The translations of Renminbi (RMB) into U.S. dollars (USD) are based on the certified exchange rate of USD1.00=RMB7.2203 on March 29, 2024 published by the Federal Reserve Board.

SOURCE Trip Group Limited

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