Trip.com Group Limited Reports Unaudited Second Quarter and First Half of 2022 Financial Results

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SHANGHAI, Sept. 21, 2022 /PRNewswire/ — Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) (“Trip.com Group” or the “Company”), a number one one-stop journey service supplier of lodging reservation, transportation ticketing, packaged excursions and company journey administration, in the present day introduced its unaudited monetary outcomes for the second quarter and first half of 2022.

Key Highlights for the Second Quarter of 2022

The Company delivered resilient ends in the second quarter regardless of the continued disruptions ensuing from the COVID-19 resurgence in China.

  • Net revenue for the second quarter was RMB43 million (US$6 million), which improved from internet loss of RMB1.0 billion for the earlier quarter.
  • Adjusted EBITDA for the second quarter was RMB355 million (US$53 million), representing a 290% improve from RMB91 million for the earlier quarter,
  • Staycation journey continued to function a significant contributor to the restoration of the Chinese home market, with native resort bookings rising by over 30% in comparison with the identical interval in 2019.
  • Both air-ticket and resort bookings on international platforms elevated over 100% 12 months over 12 months within the second quarter.

“In the second quarter, the global travel industry has made continued progress towards full recovery. The recovery momentum in Europe and the United States remained robust, and the rebound of travel activities in the Asia-Pacific region also sped up due to further relaxation of travel restrictions,” mentioned James Liang, Executive Chairman. “With our product innovation and service enhancement, we are confident in further strengthening our competitive position and capturing the pent-up demand. “

“Despite the challenges in the China domestic market in the first two months of the second quarter, the fundamental demand for travel remained solid. We are delighted to see the domestic hotel bookings quickly bouncing back to the pre-pandemic level at the end of the second quarter with such momentum extended into the following months.” mentioned Jane Sun, Chief Executive Officer. “We will continue to improve our operating efficiency and conduct prudent cost control in the face of the changing environment. All these efforts will enable us to remain flexible and pave the way for long-term growth.”

Second Quarter of 2022 Financial Results and Business Updates

In the second quarter of 2022, the COVID-19 resurgence continued to disrupt the journey business in China, which discouraged consumer demand for the Company’s companies. As a outcome, the Company’s outcomes of operations for the second quarter of 2022 have been materially and adversely affected.

For the second quarter of 2022, Trip.com Group reported internet income of RMB4.0 billion (US$598 million), representing a 32% lower from the identical interval in 2021 and a 2% lower from the earlier quarter, primarily because of the continued disruptions ensuing from the COVID-19 resurgence in China.

Accommodation reservation income for the second quarter of 2022 was RMB1.4 billion (US$203 million), representing a forty five% lower from the identical interval in 2021 and a 6% lower from the earlier quarter, primarily because of the continued disruptions ensuing from the COVID-19 resurgence in China.

Transportation ticketing income for the second quarter of 2022 was RMB1.8 billion (US$263 million), representing a 15% lower from the identical interval in 2021, primarily because of the continued disruptions ensuing from the COVID-19 resurgence in China. Transportation ticketing income elevated by 6% from the earlier quarter, primarily pushed by sturdy restoration of air journey within the abroad market.

Packaged-tour income for the second quarter of 2022 was RMB122 million (US$18 million), representing a 67% lower from the identical interval in 2021 and a 2% lower from the earlier quarter, primarily because of the continued disruptions ensuing from the COVID-19 resurgence in China.

Corporate journey income for the second quarter of 2022 was RMB210 million (US$31 million), representing a 46% lower from the identical interval in 2021 and a 5% lower from the earlier quarter, primarily because of the continued disruptions ensuing from the COVID-19 resurgence in China.

Cost of income for the second quarter of 2022 was RMB976 million (US$146 million), representing a 20% lower from the identical interval in 2021, which was consistent with the lower in internet income. Cost of income decreased by 9% from the earlier quarter. Cost of income as a share of internet income was 24% for the second quarter of 2022.

Product growth bills for the second quarter of 2022 decreased by 20% to RMB1.8 billion (US$264 million) from the identical interval in 2021 and decreased by 10% from the earlier quarter, primarily attributable to a lower in product growth personnel associated bills. Product growth bills as a share of internet income was 44% for the second quarter of 2022.

Sales and advertising bills for the second quarter of 2022 decreased by 41% to RMB826 million (US$123 million) from the identical interval in 2021 and decreased by 2% from the earlier quarter, primarily attributable to a lower in bills referring to gross sales and advertising promotion actions. Sales and advertising bills as a share of internet income was 21% for the second quarter of 2022.

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General and administrative bills for the second quarter of 2022 decreased by 15% to RMB604 million (US$90 million) from the identical interval in 2021, primarily attributable to a lower basically and administrative personnel associated bills. General and administrative bills elevated by 3% from the earlier quarter. General and administrative bills as a share of internet income was 15% for the second quarter of 2022.

Income tax expense for the second quarter of 2022 was RMB173 million (US$26 million), in comparison with revenue tax expense of RMB97 million for a similar interval in 2021 and revenue tax profit of RMB14 million within the earlier quarter. The change in Trip.com Group’s efficient tax fee was primarily because of the mixed impacts of adjustments in respective profitability of its subsidiaries with completely different tax charges, sure non-taxable revenue or loss ensuing from the honest worth adjustments in fairness securities investments and exchangeable senior notes, and adjustments in valuation allowance offered for deferred tax property.

Net revenue for the second quarter of 2022 was RMB43 million (US$6 million), in comparison with internet loss of RMB659 million for a similar interval in 2021 and internet loss of RMB1 billion for the earlier quarter. Adjusted EBITDA for the second quarter of 2022 was RMB355 million (US$53 million), in comparison with RMB916 million for a similar interval in 2021 and RMB91 million for the earlier quarter. Adjusted EBITDA margin was 9% for the second quarter of 2022, in comparison with 16% for a similar interval in 2021 and 2% for the earlier quarter.

Net revenue attributable to Trip.com Group’s shareholders for the second quarter of 2022 was RMB69 million (US$10 million), in comparison with internet loss attributable to Trip.com Group’s shareholders of RMB647 million for a similar interval in 2021 and internet loss attributable to Trip.com Group’s shareholders of RMB989 million for the earlier quarter. Excluding share-based compensation costs, honest worth adjustments of fairness securities investments and exchangeable senior notes recorded in different revenue/(expense) and their tax results, non-GAAP internet loss attributable to Trip.com Group’s shareholders was RMB203 million (US$31 million), in comparison with non-GAAP internet revenue attributable to Trip.com Group’s shareholders of RMB728 million in the identical interval in 2021 and non-GAAP internet loss attributable to Trip.com Group’s shareholders of RMB36 million for the earlier quarter.

Diluted revenue per bizarre share and per ADS was RMB0.10 (US$0.01) for the second quarter of 2022. Excluding share-based compensation costs, honest worth adjustments of fairness securities investments and exchangeable senior notes and their tax results, non-GAAP diluted loss per bizarre share and per ADS was RMB0.31 (US$0.05) for the second quarter of 2022. Each ADS at the moment represents one bizarre share of the Company.

As of June 30, 2022, the steadiness of money and money equivalents, restricted money, short-term funding, held to maturity time deposit and monetary merchandise was RMB65.6 billion (US$9.8 billion).

Conference Call

Trip.com Group’s administration crew will host a convention name at 8:00 PM EST on September 21, 2022 (or 8:00 AM CST on September 22, 2022) following this announcement.

The convention name will probably be accessible dwell on Webcast and for replay at: https://investors.trip.com. The name will probably be archived for twelve months on our web site.

All individuals should pre-register to hitch this convention name utilizing the Participant Registration hyperlink beneath:

https://register.vevent.com/register/BIe6a1088f8c3f4a77a18a7d5b03d2bc2e

Upon registration, every participant will obtain particulars for this convention name, together with dial-in numbers and a singular entry PIN. To be part of the convention, please dial the quantity offered, enter your PIN, and you’ll be part of the convention immediately.

Safe Harbor Statement

This announcement incorporates forward-looking statements. These statements are made underneath the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may be recognized by terminology corresponding to “may,” “will,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate,” “is/are likely to,” “confident” or different comparable statements. Among different issues, quotations from administration on this press launch, in addition to Trip.com Group’s strategic and operational plans, comprise forward-looking statements. Forward-looking statements contain inherent dangers and uncertainties. A quantity of essential components may trigger precise outcomes to vary materially from these contained in any forward-looking assertion. Potential dangers and uncertainties embrace, however aren’t restricted to, extreme or extended downturn within the international or Chinese economy, basic declines or disruptions within the journey business, the impression of COVID-19 pandemic to Trip.com Group’s business operations, volatility within the buying and selling worth of Trip.com Group’s ADSs or shares, Trip.com Group’s reliance on its relationships and contractual preparations with journey suppliers and strategic alliances, failure to compete in opposition to new and current rivals, failure to efficiently handle present development and potential future development, dangers related to any strategic investments or acquisitions, seasonality within the journey business within the related jurisdictions the place Trip.com Group operates, failure to efficiently develop Trip.com Group’s current or future business strains, injury to or failure of Trip.com Group’s infrastructure and know-how, loss of companies of Trip.com Group’s key executives, antagonistic adjustments in financial and political insurance policies of the PRC authorities, inflation in China, dangers and uncertainties related to PRC legal guidelines and rules with respect to the possession construction of Trip.com Group’s affiliated Chinese entities and the contractual preparations amongst Trip.com Group, its affiliated Chinese entities and their shareholders, and different dangers outlined in Trip.com Group’s filings with the U.S. Securities and Exchange Commission or the Stock Exchange of Hong Kong Limited. All info offered on this press launch and within the attachments is as of the date of the issuance, and Trip.com Group doesn’t undertake any obligation to replace any forward-looking assertion, besides as required underneath relevant regulation.

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About Non-GAAP Financial Measures

To complement Trip.com Group’s unaudited condensed consolidated monetary statements offered in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Trip.com Group makes use of non-GAAP monetary info associated to adjusted internet revenue attributable to Trip.com Group Limited, adjusted EBITDA, adjusted EBITDA margin and adjusted diluted earnings per bizarre share and per ADS, every of which is adjusted from essentially the most comparable GAAP outcome to exclude the share-based compensation costs that aren’t tax deductible and honest worth adjustments of fairness securities investments and exchangeable senior notes, internet of tax. Trip.com Group’s administration believes the non-GAAP monetary measures facilitate higher understanding of working outcomes from quarter to quarter and present administration with a greater functionality to plan and forecast future intervals.

Non-GAAP info shouldn’t be ready in accordance with GAAP, doesn’t have a standardized that means underneath GAAP, and could also be completely different from non-GAAP strategies of accounting and reporting utilized by different corporations. The presentation of this extra info shouldn’t be thought-about an alternative choice to GAAP outcomes. A limitation of utilizing non-GAAP monetary measures is that non-GAAP measures exclude share-based compensation costs, honest worth adjustments of fairness securities investments and exchangeable senior notes and their tax results which have been and will proceed to be important recurring bills in Trip.com Group’s business for the foreseeable future.

Reconciliations of Trip.com Group’s non-GAAP monetary information to essentially the most comparable GAAP information included within the consolidated assertion of operations are included on the finish of this press launch.

About Trip.com Group Limited

Trip.com Group Limited ( Nasdaq: TCOM; HKEX: 9961) is a number one international one-stop journey platform, integrating a complete suite of journey merchandise and companies and differentiated journey content material. It is the go-to vacation spot for vacationers in China, and more and more for vacationers all over the world, to discover journey, get impressed, make knowledgeable and cost-effective journey bookings, get pleasure from hassle-free on-the-go help, and share journey expertise. Founded in 1999 and listed on Nasdaq in 2003 and HKEX in 2021, the Company at the moment operates underneath a portfolio of manufacturers, together with Ctrip, Qunar, Trip.com and Skyscanner, with the mission “to pursue the perfect trip for a better world.”

For additional info, please contact:

Investor Relations

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

Trip.com Group Limited







Unaudited Consolidated Balance Sheets







(In thousands and thousands, besides share and per share information)


















December 31, 2021


June 30, 2022


June 30, 2022


RMB (million)

RMB (million)

USD (million)



















ASSETS








Current property:








Cash, money equivalents and restricted money


21,196


22,959


3,427


Short-term investments


29,566


30,721


4,587


Accounts receivable, internet 


4,649


5,445


813


Prepayments and different present property 


10,697


10,778


1,609










Total present property


66,108


69,903


10,436










Property, gear and software program


5,534


5,307


792


Intangible property and land use rights


13,046


12,929


1,931


Right-of-use property


777


925


138


Investments (Includes held to maturity time deposit and
monetary merchandise of RMB13,112 million and RMB11,891
million as of December 31,2021 and June 30, 2022,
respectively)


44,961


44,075


6,580


Goodwill


59,353


59,326


8,857


Other long-term property


396


398


60


Deferred tax asset


1,684


1,765


263










Total property


191,859


194,628


29,057










LIABILITIES








Current liabilities:








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


39,866


36,203


5,405


Accounts payable


6,019


6,745


1,007


Advances from prospects


7,535


7,822


1,168


Other present liabilities


12,798


11,926


1,781


Total present liabilities


66,218


62,696


9,361










Deferred tax legal responsibility


3,527


3,491


521


Long-term debt


11,093


17,402


2,598


Long-term lease legal responsibility


400


591


88


Other long-term liabilities


165


170


25










Total liabilities


81,403


84,350


12,593










SHAREHOLDERS’ EQUITY
















Total Trip.com Group Limited shareholders’ fairness


109,677


109,542


16,354










Non-controlling pursuits


779


736


110










Total shareholders’ fairness


110,456


110,278


16,464










Total liabilities and shareholders’ fairness


191,859


194,628


29,057

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Trip.com Group Limited















Unaudited Consolidated Statements of Income/(Loss)













(In thousands and thousands, besides share and per share information)
































Three Months Ended


Six Months Ended


June 30, 2021


March 31, 2022


June 30, 2022


June 30, 2022


June 30, 2021


June 30, 2022


June 30, 2022


RMB (million)


RMB (million)


RMB (million)


USD (million)


RMB (million)


RMB (million)


USD (million)















































Revenue:
















Accommodation reservation 


2,455


1,450


1,357


203


4,035


2,807


419


Transportation ticketing 


2,066


1,663


1,763


263


3,572


3,426


512


Packaged-tour 


367


124


122


18


536


246


37


Corporate journey


390


222


210


31


642


432


64


Others


614


652


564


84


1,216


1,216


181


















Total income


5,892


4,111


4,016


599


10,001


8,127


1,213


















Less: Sales tax and surcharges


(2)


(2)


(5)


(1)


(3)


(7)


(1)


















Net income


5,890


4,109


4,011


598


9,998


8,120


1,212


















Cost of income


(1,223)


(1,067)


(976)


(146)


(2,257)


(2,043)


(305)


















Gross revenue


4,667


3,042


3,035


452


7,741


6,077


907


















Operating bills:
















Product growth *


(2,226)


(1,974)


(1,772)


(264)


(4,451)


(3,746)


(559)


Sales and advertising *


(1,402)


(843)


(826)


(123)


(2,354)


(1,669)


(249)


General and administrative *


(713)


(584)


(604)


(90)


(1,397)


(1,188)


(178)


















Total working bills


(4,341)


(3,401)


(3,202)


(477)


(8,202)


(6,603)


(986)


















Income/(Loss) from operations


326


(359)


(167)


(25)


(461)


(526)


(79)


















Interest revenue 


472


591


544


81


890


1,135


169


Interest expense


(418)


(341)


(351)


(52)


(825)


(692)


(103)


Other (expense)/revenue


(848)


(707)


469


70


1,660


(238)


(35)


















(Loss)/Income earlier than revenue tax
expense and fairness in revenue of
associates


(468)


(816)


495


74


1,264


(321)


(48)


















Income tax (expense)/profit


(97)


14


(173)


(26)


(138)


(159)


(24)


Equity in loss of associates


(94)


(199)


(279)


(42)


(20)


(478)


(71)


















Net (loss)/revenue


(659)


(1,001)


43


6


1,106


(958)


(143)


















Net loss attributable to non-controlling pursuits


12


12


26


4


27


38


6


















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


(647)


(989)


69


10


1,133


(920)


(137)


















(Losses)/Earnings per bizarre share
















– Basic


(1.02)


(1.52)


0.10


0.01


1.76


(1.42)


(0.21)


– Diluted


(1.02)


(1.52)


0.10


0.01


1.73


(1.42)


(0.21)


















(Losses)/Earnings per ADS
















– Basic


(1.02)


(1.52)


0.10


0.01


1.76


(1.42)


(0.21)


– Diluted


(1.02)


(1.52)


0.10


0.01


1.73


(1.42)


(0.21)


















Weighted common bizarre shares excellent
















– Basic


635,476,056


647,812,835


647,866,001


647,866,001


644,666,248


647,843,829


647,843,829


– Diluted


635,476,056


647,812,835


650,906,465


650,906,465


656,483,984


647,843,829


647,843,829


















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










  Product growth 


181


107


146


22


332


253


38


  Sales and advertising 


34


18


28


4


56


46


7


  General and administrative 


151


98


130


19


272


228


34

Trip.com Group Limited















Unaudited reconciliation of  GAAP and Non-GAAP Results















(In thousands and thousands, besides % and per share information)


































Three Months Ended


Six Months Ended


June 30, 2021


March 31, 2022


June 30, 2022


June 30, 2022


June 30, 2021


June 30, 2022


June 30, 2022


RMB (million)


RMB (million)


RMB (million)


USD (million)


RMB (million)


RMB (million)


USD (million)















































Net (loss)/revenue


(659)


(1,001)


43


6


1,106


(958)


(143)


Less: Interest revenue


(472)


(591)


(544)


(81)


(890)


(1,135)


(169)


Add: Interest expense


418


341


351


52


825


692


103


Add: Other expense/(revenue)


848


707


(469)


(70)


(1,660)


238


35


Add: Income tax expense/(profit)


97


(14)


173


26


138


159


24


Add: Equity in loss of associates


94


199


279


42


20


478


71


Income/(Loss) from operations


326


(359)


(167)


(25)


(461)


(526)


(79)


Add: Share-based compensation


366


223


304


45


660


527


79


Add: Depreciation and amortization


224


227


218


33


501


445


66


Adjusted EBITDA


916


91


355


53


700


446


66


Adjusted EBITDA margin


16 %


2 %


9 %


9 %


7 %


5 %


5 %


















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


(647)


(989)


69


10


1,133


(920)


(137)


Add: Share-based compensation


366


223


304


45


660


527


79


Add: Loss/(Gain) from honest worth adjustments of fairness securities investments
and exchangeable senior notes


1,053


785


(668)


(100)


(1,314)


117


17


Add: Tax results on honest worth adjustments of fairness securities investments and
exchangeable senior notes


(44)


(55)


92


14


45


37


6


Non-GAAP internet revenue/(loss) attributable to Trip.com Group Limited


728


(36)


(203)


(31)


524


(239)


(35)


Weighted common bizarre shares outstanding- Diluted-non GAAP 


645,021,131


647,812,835


647,866,001


647,866,001


656,483,984


647,843,829


647,843,829


Non-GAAP Diluted revenue/(losses) per share


1.13


(0.06)


(0.31)


(0.05)


0.80


(0.37)


(0.06)


Non-GAAP Diluted revenue/(losses) per ADS


1.13


(0.06)


(0.31)


(0.05)


0.80


(0.37)


(0.06)


















Notes for all of the condensed consolidated monetary schedules offered:
































Note 1: The conversion of Renminbi (RMB) into U.S. {dollars} (USD) is predicated on the licensed change fee of USD1.00=RMB6.6981 on June 30, 2022 printed by the Federal Reserve Board.

SOURCE Trip.com Group Limited



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