Trip.com Group (TCOM) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 grew 16% year-over-year to RMB 15.9 billion, driven by robust travel demand in China and strong outbound and international business performance.

• Net income reached RMB 6.8 billion, up from RMB 4.6 billion in Q3 2023 and RMB 3.9 billion in Q2 2024.

• Outbound hotel and air ticket bookings reached 120% of 2019 levels, outperforming the industry by 40%.

• The company continues to innovate with AI integration and ESG initiatives, earning recognition for its digital and employment practices.

Financial highlights

• Q3 2024 net revenue was RMB 15.9 billion, up 16% year-over-year and 24% sequentially.

• Accommodation reservation revenue reached RMB 6.8 billion, up 22% year-over-year and 32% quarter-over-quarter.

• Transportation ticketing revenue was RMB 5.7 billion, up 5% year-over-year and 16% sequentially.

• Packaged-tour revenue grew 17% year-over-year and 52% sequentially to RMB 1.6 billion.

• Adjusted EBITDA was RMB 5.7 billion, up from RMB 4.6 billion a year ago.

Outlook and guidance

• Q4 2024 expected to follow normal seasonality, with year-over-year momentum strengthening post-National Day holiday.

• Growth in China-related business expected to normalize, with continued focus on inbound and outbound cross-border travel.

• Outbound flight capacity exceeded 80% of 2019 levels in Q4, with further improvements anticipated.

• Management expressed optimism for continued travel industry growth, citing rising consumer confidence and the impact of AI-driven technology.

• Expanded capital return program, potentially including dividends and buybacks, anticipated for 2025.