Trip.com rises 6% as first quarter brings surprise profit, revenue turnaround
May 18, 2021 6:20 PM ET Trip.com Group Limited (TCOM) By: Jason Aycock, SA News Editor
Trip.com Group (NASDAQ: TCOM) is 6.1% higher after hours after topping expectations with its first-quarter earnings, which showed a surprise profit.
Revenues fell by only 13.4%, to 4.1B yuan (about $628M) - much better than expected, pointing to what the company calls a "resilient" recovery in the Chinese domestic market.
That's due largely to a bounce in March, partly offset by a decrease in cross-border travel.
Revenues from corporate travel management grew 101% year-over-year, and rose 6% from the same period in 2019.
Attributable net income hit 1.8B yuan (about $273M), up from a net loss of 5.4B yuan a year ago. EBITDA improved to -216M yuan from -875M yuan.
"Despite the challenges in January and February of 2021 due to outbreaks of virus during the winter season, China domestic travel rebounded quickly in March and showed stronger momentum in April and May," says CEO Jane Sun. "Quality leisure travel showed rapid growth, with reservations for mid to high-end hotels spearheading growth. Meanwhile, long-distance travel in mainland China has fully recovered, and short-distance travel has shown a continuing growth trajectory."
Revenue breakout: Accommodation reservations, 1.6B yuan (up 37%); Transportation ticketing, 1.5B yuan (down 37%); Packaged tours, 169M yuan (down 68%); Corporate travel, 252M yuan (up 101%).
Liquidity was 66.1B yuan as of March 31 (about $10.1B).
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