Online travel agent Trip.com Group Ltd. (9961.HK; TCOM.US) on Thursday reported its revenue rose 17% year-over-year in the first quarter to 16.2 billion yuan ($2.4 billion). But its profit took a severe hit, plunging 42% year-on-year to 2.5 billion yuan, though its non-GAAP net income fell by a milder 7% to 3.9 billion yuan.
The company projected muted second-quarter revenue growth of just 3% to 8% year-over-year, citing headwinds from elevated energy prices and geopolitical volatility, along with operational adjustments to align with evolving industry standards.
Trip.com is currently under investigation for monopolistic behavior by the State Administration for Market Regulation (SAMR). It warned that the outcome of the probe could result in hefty fines or necessitate overhauls to its business practices — either of which could deal a materially adverse blow to its consolidated financial position, operating results or cash flows.
Shares of Trip.com fell nearly 11% on Thursday in Hong Kong. The stock has lost nearly half of its value from its 52-week high.
By Lau Chi Hang
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