Trip.com Beats Q2 Earnings, Bookings Surge Above Pre-COVID Level

Trip.com Group Ltd's TCOM Q2 FY23 revenues rose 180% Y/Y to RMB11.2 billion, led by a significant travel market recovery.

Adjusted EPS per ADS stood at RMB5.11 vs. a loss of RMB(0.31) a year ago. 

In USD terms, revenue of $1.552 billion beat the consensus of $1.480 billion, and adjusted EPS per ADS of $0.70 surpassed the street view of $0.50. 

Revenue from Accommodation reservations escalated 216% Y/Y, Transportation ticketing grew 173% Y/Y and Packaged-tour upped 492% Y/Y.

Domestic hotel bookings grew 170% Y/Y and over 60% vs. pre-COVID in 2019. Air ticket bookings on the company's global OTA platform grew by over 120% Y/Y and nearly doubled vs. pre-COVID level.

Outbound hotel and air reservations recovered to over 60% vs. the pre-COVID level, exceeding the industry-wide recovery rate of international air passenger volume of 37%.

Adjusted EBITDA stood at RMB3.7 billion ($507 million), with margins expanding to 33%, vs. 9% a year ago.

As of June 30, 2023, cash and cash equivalents, restricted cash, short-term investment, held to-maturity time deposit, and financial products stood at RMB75.0 billion ($10.3 billion).

Also Read: Why Trip.com Group Stock Hit A New 52-Week High Today

Price Action: TCOM shares are trading lower by 4.78% at $38.49 premarket on the last check Tuesday.