FAST NEWS: Trip.com annual profit soars on travel rebound
The latest: China’s leading online travel agent Trip.com Group Ltd. (9961.HK; TCOM.US) on Thursday reported its net profit soared more than six-fold to 9.92 billion yuan ($1.38 billion) last year, mainly due to strong post-pandemic demand for travel in both China and internationally.
Looking up: The company’s operating revenue surged 122% to 44.5 billion yuan last year, led by increases of 133% for hotel bookings and 123% for transportation ticketing.
Take Note: The company’s net profit declined 37% to 1.3 billion yuan in last year’s fourth quarter, mainly due to significant increases in its cost of revenue and R&D and marketing expenses.
Digging Deeper: Like many travel- and tourism-related companies, Trip.com suffered big revenue hits at the height of the pandemic, and recorded losses in 2020 and 2021. But its business is rebounding with the pandemic’s end. After returning to significant growth last year with the lifting of China’s pandemic restrictions, Trip.com’s management said it expects the global travel industry to maintain its growth trend in 2024, and that the company will continue to invest in technology and product innovations.
Market Reaction: Trip.com’s shares rose on Thursday and closed up 5% at HK$348 by the midday break, a 52-week high.
Translation by A. Au
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