Market Overview

Trip.com Group Limited Reports Unaudited Fourth Quarter and Full Year of 2019 Financial Results

Share:

SHANGHAI, March 18, 2020 /PRNewswire/ -- Trip.com Group Limited (NASDAQ:TCOM) ("Trip.com Group" or the "Company"), a leading provider of online travel and related services, including accommodation reservation, transportation ticketing, packaged tours and in-destination services, corporate travel management, and other travel-related services, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2019.

Key Highlights for the Fourth Quarter and Full Year of 2019

- Trip.com Group reported strong financial results for the fourth quarter and full year of 2019.

  • Income from operations for the fourth quarter of 2019 was RMB580 million (US$84 million), compared to the loss of RMB189 million in the same period in 2018. Excluding share-based compensation charges, non-GAAP income from operations increased by 294% year-over-year to RMB1.0 billion (US$148 million) in the fourth quarter of 2019.
  • Net income attributable to Trip.com Group's shareholders reached RMB2.0 billion (US$289 million) in the fourth quarter of 2019, resulting in 2019 full year net income of RMB7.0 billion (US$1.0 billion), compared to net loss of RMB1.2 billion in same period in 2018 and net income of RMB1.1 billion for full year 2018. Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP net income attributable to Trip.com Group's shareholders increased by 132% year-over-year to RMB1.2 billion (US$171 million) in the fourth quarter of 2019 and by 19% year-over-year to RMB6.5 billion (US$937 million) for full year 2019.

- Our international business maintained robust growth despite regional challenges.

  • The year-over-year revenue growth for hotels (excluding Greater China destinations) reached 51% in the fourth quarter of 2019.
  • Brand Trip.com delivered its 13th consecutive triple-digit growth for international air ticketing volume in the fourth quarter of 2019.

- The Company meaningfully increased the presence in lower-tier cities.

  • Ctrip branded low-star hotel room-nights increased around 50% year-over-year in the fourth quarter of 2019.
  • By the end of 2019, our offline stores reached close to 8,000 in operation and in pipeline.

"We achieved strong results in the fourth quarter, despite facing macro challenges in certain regions," said Jane Sun, Chief Executive Officer. "The team delivered solid execution, driving both topline growth and bottom line profitability. Our business fundamentals have never been healthier than today, with both international expansion and lower-tier city penetration becoming increasingly important drivers in our future growth roadmap."

"Despite a challenging beginning in 2020, we are confident of the underlying fundamentals of the Chinese economy, and continue to feel excited about the opportunities globally as well", said James Liang, Executive Chairman. "During the recent novel coronavirus outbreak, we took immediate actions to take care of our customers and partners, while taking on necessary financial impact in the near term. We firmly believe it was the right thing to do for us as the industry leader, and look forward to coming back even stronger after the outbreak is contained. Looking beyond the temporary slowdown, we continue to strive to become the best travel companion for a global and growing customer base in the many years to come."

Fourth Quarter and Full Year of 2019 Financial Results and Business Updates

For the fourth quarter of 2019, Trip.com Group reported net revenue of RMB8.3 billion (US$1.2 billion), representing a 10% increase from the same period in 2018. Net revenue for the fourth quarter of 2019 decreased by 20% from the previous quarter, primarily due to seasonality.

For the full year ended December 31, 2019, net revenue was RMB35.7 billion (US$5.1 billion), representing a 15% increase from 2018.

Accommodation reservation revenue for the fourth quarter of 2019 was RMB3.0 billion (US$426 million), representing a 12% increase from the same period in 2018, primarily due to our brand's extensive global reach, expansion in our global product portfolio, and provision of diversified accommodation choices to prospective customers. Accommodation reservation revenue for the fourth quarter of 2019 decreased by 28% from the previous quarter, primarily due to seasonality.

For the full year ended December 31, 2019, accommodation reservation revenue was RMB13.5 billion (US$1.9 billion), representing a 17% increase from 2018. The accommodation reservation revenue accounted for 38% of the total revenue in 2019 and 37% of the total revenue in 2018.

Transportation ticketing revenue for the fourth quarter of 2019 was RMB3.5 billion (US$498 million), representing a 2% increase from the same period in 2018. Transportation ticketing revenue decreased by 7% from the previous quarter, primarily due to seasonality.

For the full year ended December 31, 2019, transportation ticketing revenue was RMB14.0 billion (US$2.0 billion), representing an 8% increase from 2018. The transportation ticketing revenue accounted for 39% of the total revenue in 2019 and 42% of the total revenue in 2018.

Packaged tour revenue for the fourth quarter of 2019 was RMB800 million (US$115 million), representing an 11% increase from the same period in 2018, primarily driven by an increase of organized tours and self-guided tours. Packaged tour revenue for the fourth quarter of 2019 decreased by 51% from the previous quarter, primarily due to seasonality.

For the full year ended December 31, 2019, packaged tour revenue was RMB4.5 billion (US$651 million), representing a 20% increase from 2018. The packaged tour revenue accounted for 13% of the total revenue in 2019 and 12% of the total revenue in 2018.

Corporate travel revenue for the fourth quarter of 2019 was RMB373 million (US$54 million), representing a 33% increase from the same period in 2018, primarily driven by expansion in travel product coverage and corporate customer base. Corporate travel revenue for the fourth quarter of 2019 increased by 11% from the previous quarter.

For the full year ended December 31, 2019, corporate travel revenue was RMB1.3 billion (US$180 million), representing a 28% increase from 2018. The corporate travel revenue accounted for 4% of the total revenue in 2019 and 3% of the total revenue in 2018.

Gross margin was 79% for the fourth quarter of 2019, remained consistent with that for the same period in 2018 and the previous quarter.

For the full year ended December 31, 2019, gross margin was 79%, compared to 80% in 2018.

Product development expenses for the fourth quarter of 2019 decreased by 1% to RMB2.7 billion (US$387 million) from the same period in 2018, and decreased by 3% from the previous quarter. Product development expenses for the fourth quarter of 2019 accounted for 32% of the net revenue. Excluding share-based compensation charges, non-GAAP product development expenses for the fourth quarter of 2019 accounted for 29% of the net revenue, which decreased from 33% for the same period of 2018 and increased from 25% for the previous quarter. 

For the full year ended December 31, 2019, product development expenses increased by 11% to RMB10.7 billion (US$1.5 billion) from 2018 and accounted for 30% of the net revenue. Excluding share-based compensation charges, non-GAAP product development expenses accounted for 27% of the net revenue, which decreased from 28% in 2018.

Sales and marketing expenses for the fourth quarter of 2019 decreased by 5% to RMB2.5 billion (US$357 million) from the same period in 2018, primarily due to the decrease of sales and marketing related activities. Sales and marketing expenses remained consistent with those for the previous quarter. Sales and marketing expenses for the fourth quarter of 2019 accounted for 30% of the net revenue. Excluding share-based compensation charges, non-GAAP sales and marketing expenses for the fourth quarter of 2019 accounted for 29% of the net revenue, which decreased from 34% in the same period in 2018 and increased from 23% in the previous quarter.

For the full year ended December 31, 2019, sales and marketing expenses decreased by 3% to RMB9.3 billion (US$1.3 billion) from 2018 and accounted for 26% of the net revenue. Excluding share-based compensation charges, non-GAAP sales and marketing expenses accounted for 26% of the net revenue, which decreased from 30% in 2018.

General and administrative expenses for the fourth quarter of 2019 increased by 5% to RMB846 million (US$121 million) from the same period in 2018 and increased 5% from the previous quarter, primarily due to an increase in general and administrative personnel related expenses. General and administrative expenses for the fourth quarter of 2019 accounted for 10% of the net revenue. Excluding share-based compensation charges, non-GAAP general and administrative expenses accounted for 8% of the net revenue, which remained consistent with those for the same period in 2018 and increased from 6% for the previous quarter.

For the full year ended December 31, 2019, general and administrative expenses increased by 17% to RMB3.3 billion (US$472 million) from 2018 and accounted for 9% of the net revenue. Excluding share-based compensation charges, non-GAAP general and administrative expenses accounted for 7% of the net revenue, which remained consistent with 2018.

Income from operations for the fourth quarter of 2019 was RMB580 million (US$84 million), compared to the loss of RMB189 million in the same period in 2018 and the income of RMB2.2 billion in the previous quarter. Excluding share-based compensation charges, non-GAAP income from operations was RMB1.0 billion (US$148 million), compared to RMB261 million in the same period in 2018 and RMB2.6 billion in the previous quarter.

For the full year ended December 31, 2019, income from operations was RMB5.0 billion (US$723 million), compared to RMB2.6 billion in 2018. Excluding share-based compensation charges, non-GAAP income from operations was RMB6.8 billion (US$970 million), compared to RMB4.3 billion in 2018.

Operating margin was 7% for the fourth quarter of 2019, compared to -3% in the same period in 2018, and 21% in the previous quarter. Excluding share-based compensation charges, non-GAAP operating margin was 12%, compared to 3% in the same period in 2018 and 25% in the previous quarter.

For the full year ended December 31, 2019, operating margin was 14%, compared to 8% in 2018. Excluding share-based compensation charges, non-GAAP operating margin was 19%, compared to 14% in 2018.

Income tax expense for the fourth quarter of 2019 was RMB364 million (US$52 million), compared to RMB35 million in the same period of 2018 and RMB365 million in the previous quarter. The change in our effective tax rate was primarily due to changes in the profitability of our subsidiaries that have different tax rates, including certain non-taxable income of the fair value changes in equity securities investments.

For the full year ended December 31, 2019, income tax expense was RMB1.7 billion (US$250 million), compared to RMB793 million in 2018.

Net income attributable to Trip.com Group's shareholders for the fourth quarter of 2019 was RMB2.0 billion (US$289 million), compared to net loss of RMB1.2 billion in the same period in 2018 and net income of RMB793 million in the previous quarter, mainly due to the fair value changes in equity securities investments. Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP net income attributable to Trip.com Group's shareholders was RMB1.2 billion (US$171 million), compared to RMB513 million in the same period in 2018 and RMB2.3 billion in the previous quarter.

For the full year ended December 31, 2019, net income attributable to Trip.com Group's shareholders was RMB7.0 billion (US$1.0 billion), compared to RMB1.1 billion in 2018. Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP net income attributable to Trip.com Group's shareholders was RMB6.5 billion (US$937 million), compared to RMB5.5 billion in 2018.

Diluted earnings per ADS were RMB3.23 (US$0.46) for the fourth quarter of 2019. Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP diluted earnings per ADS were RMB1.94 (US$0.28) for the fourth quarter of 2019.

For the full year ended December 31, 2019, diluted earnings per ADS were RMB11.50 (US$1.65). Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP diluted earnings per ADS were RMB10.75 (US$1.54).

As of December 31, 2019, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products was RMB59.9 billion (US$8.6 billion).

Business Outlook

The beginning of 2020 was challenging for travel industry due to the outbreak of the novel coronavirus. As a result of the impact of the coronavirus outbreak, we have lowered our expectations for growth in the first quarter of 2020. For the first quarter of 2020, the Company expects net revenue to decrease by approximately 45% to 50% year-over-year. This forecast reflects the current and preliminary view based on best information available at the time, which is subject to change.

Conference Call

Trip.com Group's management will hold an earnings conference call at 8:00 PM on March 18, 2020, U.S. Eastern Time (8:00 AM on March 19, 2020, Beijing/Shanghai Time).

The conference call will be available on Webcast live and replay at: https://investors.trip.com. The call will be archived for twelve months at this website.

Listeners may access the call by dialing the following numbers:

US:

1-855-881-1339 or 1-914-202-3258

Hong Kong:

800-966-806

Mainland China:

4001-200-659

International:

+61-7-3145-4010

Passcode:

10003793

For pre-registration, please click
https://s1.c-conf.com/diamondpass/10003793-invite.html

A telephone replay of the call will be available after the conclusion of the conference call until March 26, 2020. The dial-in details for the replay:

International dial-in number:

+61-7-3107-6325

Passcode:

10003793

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 and the Business Outlook section 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, volatility in the trading price of Trip.com Group's ADSs, 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. 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 product development expenses, sales and marketing expenses, general and administrative expenses, income from operations, operating margin, net income attributable to Trip.com Group's shareholders, and diluted earnings per ordinary share and per ADS, each of which (except for net commission earned) is adjusted from the most comparable GAAP result to exclude the share-based compensation charges recorded under ASC 718, "Compensation-Stock Compensation" and its share-based compensation charges are not tax deductible, and fair value changes of equity securities investments, net of tax, recorded under ASU 2016-1. 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 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 and fair value changes of equity securities investments 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) is a leading one-stop travel service provider consisting of Trip.com, Ctrip, Skyscanner, and Qunar. Across its platforms, Trip.com Group enables local partners and travelers around the world to make informed and cost-effective bookings for travel products and services, through aggregation of comprehensive travel-related information and resources, and an advanced transaction platform consisting of mobile apps, Internet websites, and 24/7 customer service centers. Founded in 1999 and listed on Nasdaq in 2003, Trip.com Group has become one of the largest travel companies in the world in terms of gross merchandise value.

Trip.com Group Limited

Unaudited Consolidated Balance Sheets

(In millions, except share and per share data)












December 31, 2018



December 31, 2019



December 31, 2019



RMB (million)



RMB (million)



USD (million)





















(unaudited)



(unaudited)



(unaudited)










ASSETS









Current assets:









Cash and cash equivalents


21,530



19,923



2,862

Restricted cash


4,244



1,824



262

Short-term investments


36,753



23,058



3,312

Accounts receivable, net 


5,668



7,661



1,100

Prepayments and other current assets 


11,199



15,489



2,225










Total current assets


79,394



67,955



9,761










Long-term deposits and prepayments     


768



1,000



144

Land use rights


94



91



13

Property, equipment and software


5,872



6,135



881

Investments


26,874



51,278



7,366

Goodwill


58,026



58,308



8,375

Intangible assets


13,723



13,173



1,892

Other long-term receivable


229



46



7

Right-of-use asset*


-



1,207



173

Deferred tax assets


850



976



140










Total assets


185,830



200,169



28,752










LIABILITIES









Current liabilities:









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


36,011



30,516



4,383

Accounts payable


11,714



12,294



1,766

Salary and welfare payable


3,694



4,829



694

Taxes payable


1,019



1,449



208

Advances from customers


9,472



11,675



1,677

Accrued liability for customer reward program


528



478



69

Other payables and accruals*


6,346



7,941



1,140










Total current liabilities


68,784



69,182



9,937










Deferred tax liabilities 


3,838



3,592



516

Long-term debt


24,146



19,537



2,806

Other long-term liabilities


329



264



38

Long-term lease liability*


-



749



108










Total liabilities


97,097



93,324



13,405










MEZZANINE EQUITY









Redeemable non-controlling interests 


-



1,142



164










SHAREHOLDERS' EQUITY


















Total Trip.com Group Limited shareholders' equity


86,715



103,442



14,858










Non-controlling interests


2,018



2,261



325










Total shareholders' equity


88,733



105,703



15,183










Total liabilities, mezzanine equity and shareholders' equity


185,830



200,169



28,752










* The Company adopted ASU No. 2016-02 and ASU No.2018-11, "Leases," beginning January 1, 2019 and elected to utilize the additional
transition method which allowed the Company to initially apply the new lease standard at the adoption date and recognize a cumulative effect
adjustment to the opening balance of retained earnings of 2019, with no adjustments to prior periods and no cumulative effect to the opening
balance of retained earnings.The adoption of the new guidance did not have a material effect on our results of operations, financial condition
or liquidity.

 

Trip.com Group Limited

Unaudited Consolidated Statements of Comprehensive Income

(In millions, except share and per share data)















Quarter Ended



Quarter Ended



 Quarter Ended 



 Quarter Ended 



December 31, 2018



September 30, 2019



 December 31, 2019 



 December 31, 2019 



RMB (million)



RMB (million)



 RMB (million) 



 USD (million) 



























(unaudited)



(unaudited)



 (unaudited) 



 (unaudited) 













Revenue:












Accommodation reservation 


2,656



4,117



2,968



426

Transportation ticketing 


3,414



3,721



3,470



498

Packaged-tour 


721



1,638



800



115

Corporate travel


279



335



373



54

Others


515



688



732



105













Total revenue


7,585



10,499



8,343



1,198













Less: Sales tax and surcharges


(25)



(23)



(8)



(1)













Net revenue


7,560



10,476



8,335



1,197













Cost of revenue


(1,620)



(2,157)



(1,728)



(248)













Gross profit


5,940



8,319



6,607



949













Operating expenses:












Product development ***


(2,718)



(2,790)



(2,694)



(387)

Sales and marketing ***


(2,609)



(2,478)



(2,487)



(357)

General and administrative ***


(802)



(809)



(846)



(121)













Total operating expenses


(6,129)



(6,077)



(6,027)



(865)













(Loss)/income from operations


(189)



2,242



580



84













Interest income 


574



509



536



77

Interest expense


(422)



(423)



(387)



(56)

Other (loss)/income **


(1,103)



(1,349)



1,775



255













(Loss)/income before income tax expense,
equity in income of affiliates and non-controlling
interests


(1,140)



979



2,504



360













Income tax expense  **


(35)



(365)



(364)



(52)

Equity in (loss)/income of affiliates


(66)



206



(147)



(21)













Net (loss)/income


(1,241)



820



1,993



287













Net loss/(income) attributable to non-controlling
interests


51



(18)



38



5

Accretion to redemption value of redeemable non-
controlling interests


-



(9)



(23)



(3)













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


(1,190)



793



2,008



289













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


(1,997)



477



2,188



314













(Losses)/earnings per ordinary share












- Basic


(17.32)



11.19



27.03



3.88

- Diluted


(17.32)



10.83



25.82



3.71













(Losses)/earnings per ADS 












- Basic


(2.17)



1.40



3.38



0.49

- Diluted


(2.17)



1.35



3.23



0.46













Weighted average ordinary shares outstanding












- Basic


68,758,052



70,979,652



74,261,842



74,261,842

- Diluted


68,758,052



75,203,352



80,426,008



80,426,008

- Diluted-non GAAP


74,464,863



79,585,733



77,664,621



77,664,621













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








  Product development 


239



213



240



34

  Sales and marketing 


41



34



38



6

  General and administrative 


170



146



165



24













** Fair value changes of equity securities investments included in Net (loss)/income is as follow:







Fair value loss/(income) of equity securities
investments, net of tax


1,253



1,076



(1,265)



(182)

 

Trip.com Group Limited

Reconciliation of  GAAP and Non-GAAP Results

(In millions, except % and per share data)











Quarter Ended December 31, 2019


GAAP Result

% of Net
Revenue


Non-GAAP
Adjustment

% of Net
Revenue


Non-GAAP Result

% of Net
Revenue










Share-based compensation included in Operating expense is as follows:








Product development 

(2,694)

-32%


240

3%


(2,454)

-29%

Sales and marketing 

(2,487)

-30%


38

0%


(2,449)

-29%

General and administrative 

(846)

-10%


165

2%


(681)

-8%

Total operating expenses

(6,027)

-72%


443

5%


(5,584)

-67%










Income from operations

580

7%


443

5%


1,023

12%










Fair value changes of equity securities investments, net of tax of
RMB62 million

1,265

15%


(1,265)

-15%


-

0%










Net income/(loss) attributable to Trip.com Group's shareholders

2,008

24%


(822)

-10%


1,186

14%










Diluted earnings per ordinary share (RMB)

25.82



(10.31)



15.51











Diluted earnings per ADS (RMB)

3.23



(1.29)



1.94











Diluted earnings per ADS (USD)

0.46



(0.19)



0.28





















Quarter Ended September 30, 2019


GAAP Result

% of Net
Revenue


Non-GAAP
Adjustment

% of Net
Revenue


Non-GAAP Result

% of Net
Revenue










Share-based compensation included in Operating expense is as follows:








Product development 

(2,790)

-27%


213

2%


(2,577)

-25%

Sales and marketing 

(2,478)

-24%


34

0%


(2,444)

-23%

General and administrative 

(809)

-8%


146

1%


(663)

-6%

Total operating expenses

(6,077)

-58%


393

4%


(5,684)

-54%










Income from operations

2,242

21%


393

4%


2,635

25%










Fair value changes of equity securities investments, net of tax of
RMB134 million

(1,076)

-10%


1,076

10%


-

0%










Net income attributable to Trip.com Group's shareholders

793

8%


1,469

14%


2,262

22%










Diluted earnings per ordinary share (RMB)

10.83



18.73



29.56











Diluted earnings per ADS (RMB)

1.35



2.35



3.70











Diluted earnings per ADS (USD)

0.19



0.33



0.52





















Quarter Ended December 31, 2018


GAAP Result

% of Net
Revenue


Non-GAAP
Adjustment

% of Net
Revenue


Non-GAAP Result

% of Net
Revenue










Share-based compensation included in Operating expense is as follows:








Product development 

(2,718)

-36%


239

3%


(2,479)

-33%

Sales and marketing 

(2,609)

-35%


41

1%


(2,568)

-34%

General and administrative 

(802)

-11%


170

2%


(632)

-8%

Total operating expenses

(6,129)

-81%


450

6%


(5,679)

-75%










Loss from operations

(189)

-3%


450

6%


261

3%










Fair value changes of equity securities investments, net of tax of
RMB99 million

(1,253)

-12%


1,253

12%


-

0%










Net (loss)/income attributable to Trip.com Group's shareholders

(1,190)

-16%


1,703

23%


513

7%










Diluted (losses)/earnings per ordinary share (RMB)

(17.32)



24.53



7.21











Diluted (losses)/earnings per ADS (RMB)

(2.17)



3.07



0.90











Diluted (losses)/earnings per ADS (USD)

(0.32)



0.45



0.13




















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=RMB6.9618 on December 31, 2019 published
by the Federal Reserve Board.

 

Trip.com Group Limited

Unaudited Consolidated Statements of Comprehensive Income

(In millions, except share and per share data)












Year Ended



 Year Ended 



 Year Ended 



December 31, 2018



 December 31, 2019 



 December 31, 2019 



RMB (million)



 RMB (million) 



 USD (million) 





















(unaudited)



 (unaudited) 



 (unaudited) 










Revenue:









Accommodation reservation 


11,580



13,514



1,941

Transportation ticketing 


12,947



13,952



2,004

Packaged-tour 


3,772



4,534



651

Corporate travel


981



1,255



180

Others


1,824



2,461



353










Total revenue


31,104



35,716



5,129










Less: Sales tax and surcharges


(139)



(50)



(7)










Net revenue


30,965



35,666



5,122










Cost of revenue


(6,324)



(7,372)



(1,059)










Gross profit


24,641



28,294



4,063










Operating expenses:









Product development ***


(9,620)



(10,670)



(1,533)

Sales and marketing ***


(9,596)



(9,295)



(1,335)

General and administrative ***


(2,820)



(3,289)



(472)










Total operating expenses


(22,036)



(23,254)



(3,340)










Income from operations


2,605



5,040



723










Interest income 


1,899



2,094



301

Interest expense


(1,508)



(1,677)



(241)

Other (loss)/income **


(1,075)



3,630



521










Income before income tax expense, equity in
income of affiliates and non-controlling interests


1,921



9,087



1,304










Income tax expense  **


(793)



(1,742)



(250)

Equity in loss of affiliates


(32)



(347)



(50)










Net income


1,096



6,998



1,004










Net loss attributable to non-controlling interests


16



57



8

Accretion to redemption value of redeemable non-
controlling interests


-



(44)



(6)










Net income attributable to Trip.com Group
Limited


1,112



7,011



1,006










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


(656)



6,988



1,004










Earnings per ordinary share









- Basic


16.25



98.78



14.19

- Diluted


15.67



92.02



13.22










Earnings per ADS 









- Basic


2.03



12.35



1.77

- Diluted


1.96



11.50



1.65










Weighted average ordinary shares outstanding









- Basic


68,403,426



70,983,996



70,983,996

- Diluted


70,924,623



80,244,014



80,244,014

- Diluted-non GAAP


80,529,171



80,244,014



80,244,014










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




  Product development 


934



919



132

  Sales and marketing 


156



144



21

  General and administrative 


617



651



94










** Fair value changes of equity securities investments included in Net income is as follow:




Fair value loss/(income) of equity securities
investments, net of tax


2,661



(2,198)



(316)

 

Trip.com Group Limited

Unaudited Consolidated Statements of Comprehensive Income

(In millions, except share and per share data)











Year Ended December 31, 2019


GAAP Result

% of Net
Revenues


Non-GAAP
Adjustment

% of Net
Revenues


Non-GAAP Result

% of Net
Revenues










Product development 

(10,670)

-30%


919

3%


(9,751)

-27%

Sales and marketing 

(9,295)

-26%


144

0%


(9,151)

-26%

General and administrative 

(3,289)

-9%


651

2%


(2,638)

-7%

Total operating expenses

(23,254)

-65%


1,714

5%


(21,540)

-60%










Income from operations

5,040

14%


1,714

5%


6,754

19%










Fair value changes of equity securities investments, net of tax of
RMB136 million

2,198

6%


(2,198)

-6%


-

0%










Net income/(loss) attributable to Trip.com Group's shareholders

7,011

20%


(484)

-1%


6,527

18%










Diluted earnings per ordinary share (RMB)

92.02



(6.03)



85.99











Diluted earnings per ADS (RMB)

11.50



(0.75)



10.75











Diluted earnings per ADS (USD)

1.65



(0.11)



1.54





















Year Ended December 31, 2018


GAAP Result

% of Net
Revenues


Non-GAAP
Adjustment

% of Net
Revenues


Non-GAAP Result

% of Net
Revenues










Product development 

(9,620)

-31%


934

3%


(8,686)

-28%

Sales and marketing 

(9,596)

-31%


156

1%


(9,440)

-30%

General and administrative 

(2,820)

-9%


617

2%


(2,203)

-7%

Total operating expenses

(22,036)

-71%


1,707

6%


(20,329)

-66%










Income from operations

2,605

8%


1,707

6%


4,312

14%










Fair value changes of equity securities investments, net of tax of
RMB403 million

(2,661)

-9%


2,661

9%


-

0%










Net income attributable to Trip.com Group's shareholders

1,112

4%


4,368

14%


5,480

18%










Diluted earnings per ordinary share (RMB)

15.67



58.12



73.79











Diluted earnings per ADS (RMB)

1.96



7.26



9.22











Diluted earnings per ADS (USD)

0.29



1.05



1.34




















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=RMB6.9618 on December 31, 2019 published by the
Federal Reserve Board.

 

Cision View original content:http://www.prnewswire.com/news-releases/tripcom-group-limited-reports-unaudited-fourth-quarter-and-full-year-of-2019-financial-results-301026009.html

SOURCE Trip.com Group Limited

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com