Trip.com Group Limited Reports Unaudited Fourth Quarter and Full Year of 2022 Financial Results

---

SHANGHAI, March 7, 2023 /PRNewswire/ -- Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) ("Trip.com Group" or the "Company"), a leading one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours and corporate travel management, today announced its unaudited financial results for the fourth quarter and full year of 2022.

Key Highlights for the Fourth Quarter and Full Year of 2022

  • The domestic business in China remained resilient and the international business continued to show strong recovery momentum.
    -  Outbound air-ticket bookings and hotel bookings increased by over 200% and 140% year over year in the fourth quarter, respectively.
    -  Overall air-ticket bookings on the Company's global platforms grew by 80% year over year in the fourth quarter.

"The year of 2022 marks a turning point for the global travel industry, with most of the travel restrictions and quarantine requirements in China being lifted in December and the global travel industry maintaining its robust recovery," said James Liang, Executive Chairman. "During the fourth quarter, the European and the U.S. markets made further progress towards normalcy while the Asia market was quickly picking up the pace. We have seen rapid growth for China's outbound travel since the beginning of 2023, showing a strong pent-up demand for outbound travel. We are excited about the opportunities ahead and are well-prepared to capture demands across our major markets."

"We are encouraged by our solid results in 2022 and strong recovery in the recent months," said Jane Sun, Chief Executive Officer. "Going forward, we will continue to focus on expanding our product coverage in scope and depth, and further improving our customer service quality in the global markets. Based on the solid foundation we have built over the past three years, we are confident that our company can grow at a faster pace across global markets as we continue to leverage our operational improvements."

Fourth Quarter and Full Year of 2022 Financial Results and Business Updates

The Company's domestic business was negatively impacted by the COVID-19 pandemic in the fourth quarter of 2022. Meanwhile, the Company's international business maintained its growth momentum as countries continued to open up and return to normalcy.

For the fourth quarter of 2022, Trip.com Group reported net revenue of RMB5.0 billion (US$729 million), representing a 7% increase from the same period in 2021. Net revenue for the fourth quarter of 2022 decreased by 27% from the previous quarter primarily due to the surges of COVID-19 infections in certain regions of China and the seasonality in winter.

For the full year of 2022, net revenue was RMB20.0 billion (US$2.9 billion), which remained flat comparing to that for 2021.

Accommodation reservation revenue for the fourth quarter of 2022 was RMB1.7 billion (US$245 million), representing a 12% decrease from the same period in 2021 and a 42% decrease from the previous quarter, primarily due to the surges of COVID-19 infections in certain regions of China.

For the full year of 2022, accommodation reservation revenue was RMB7.4 billion (US$1.1 billion), representing a 9% decrease from 2021. The accommodation reservation revenue accounted for 37% of the total revenue in 2022 and 41% of the total revenue in 2021.

Transportation ticketing revenue for the fourth quarter of 2022 was RMB2.2 billion (US$320 million), representing a 45% increase from the same period in 2021 primarily due to the strong recovery of overseas market. Transportation ticketing revenue for the fourth quarter decreased by 16% from the previous quarter primarily due to the surges of COVID-19 infections in certain regions of China and the seasonality in winter.

For the full year of 2022, transportation ticketing revenue was RMB8.3 billion (US$1.2 billion), representing a 20% increase from 2021. The transportation ticketing revenue accounted for 41% of the total revenue in 2022 and 34% of the total revenue in 2021.

Packaged-tour revenue for the fourth quarter of 2022 was RMB164 million (US$24 million), representing a 7% decrease from the same period in 2021 and a 58% decrease from the previous quarter, primarily due to the surges of COVID-19 infections in certain regions of China.

For the full year of 2022, packaged-tour revenue was RMB797 million (US$116 million), representing a 28% decrease from 2021. The packaged-tour revenue accounted for 4% of the total revenue in 2022 and 6% of the total revenue in 2021.

Corporate travel revenue for the fourth quarter of 2022 was RMB277 million (US$40 million), representing a 25% decrease from the same period in 2021 and a 25% decrease from the previous quarter, primarily due to the surges of COVID-19 infections in certain regions of China.

For the full year of 2022, corporate travel revenue was RMB1.1 billion (US$157 million), representing a 20% decrease from 2021. The corporate travel revenue accounted for 5% of the total revenue in 2022 and 7% of the total revenue in 2021.

Cost of revenue for the fourth quarter of 2022 increased by 7% to RMB1.2 billion (US$174 million) from the same period in 2021 and decreased by 6% from the previous quarter. Cost of revenue as a percentage of net revenue was 24% for the fourth quarter of 2022.

For the full year of 2022, cost of revenue was relatively stable at RMB4.5 billion (US$654 million) comparing to that for 2021, which accounted for 23% of net revenue.

Product development expenses for the fourth quarter of 2022 decreased by 6% to RMB2.1 billion (US$305 million) from the same period in 2021 and decreased by 16% from the previous quarter, primarily due to a decrease in product development personnel related expenses. Product development expenses as a percentage of net revenue was 42% for the fourth quarter of 2022.

For the full year of 2022, product development expenses decreased by 7% to RMB8.3 billion (US$1.2 billion) from 2021, which accounted for 42% of net revenue.

Sales and marketing expenses for the fourth quarter of 2022 decreased by 12% to RMB1.1 billion (US$166 million) from the same period in 2021 and decreased by 20% from the previous quarter, primarily due to a decrease in expenses relating to sales and marketing promotion activities. Sales and marketing expenses as a percentage of net revenue was 23% for the fourth quarter of 2022.

For the full year of 2022, sales and marketing expenses decreased by 14% to RMB4.3 billion (US$616 million) from 2021, which accounted for 21% of net revenue.

General and administrative expenses for the fourth quarter of 2022 increased by 11% to RMB816 million (US$118 million) from the same period in 2021 primarily due to an increase in allowance for credit losses and decreased by 3% from the previous quarter. General and administrative expenses as a percentage of net revenue was 16% for the fourth quarter of 2022.

For the full year of 2022, general and administrative expenses decreased by 3% to RMB2.8 billion (US$413 million) from 2021, which accounted for 14% of net revenue.

Income tax expense for the fourth quarter of 2022 was RMB246 million (US$36 million), compared to RMB37 million for the same period in 2021 and RMB277 million for the previous quarter. The change in Trip.com Group's effective tax rate was primarily due to the combined impacts of changes in respective profitability of its subsidiaries with different tax rates, certain non-taxable income or loss resulting from the fair value changes in equity securities investments and exchangeable senior notes, and changes in valuation allowance provided for deferred tax assets.

For the full year of 2022, income tax expense was RMB682 million (US$99 million), compared to RMB270 million in 2021.

Net income for the fourth quarter of 2022 was RMB2.1 billion (US$301 million), compared to net loss of RMB883 million for the same period in 2021 and net income of RMB245 million for the previous quarter. Adjusted EBITDA for the fourth quarter of 2022 was RMB286 million (US$41 million), compared to RMB54 million for the same period in 2021 and RMB1.4 billion for the previous quarter. Adjusted EBITDA margin was 6% for the fourth quarter of 2022, compared to 1% for the same period in 2021 and 21% for the previous quarter.

For the full year of 2022, net income was RMB1.4 billion (US$201 million), compared to net loss of RMB645 million in 2021.

Net income attributable to Trip.com Group's shareholders for the fourth quarter of 2022 was RMB2.1 billion (US$298 million), compared to net loss attributable to Trip.com Group's shareholders of RMB834 million for the same period in 2021 and net income attributable to Trip.com Group's shareholders of RMB266 million for the previous quarter. Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense) and their tax effects, non-GAAP net income attributable to Trip.com Group's shareholders for the fourth quarter of 2022 was RMB498 million (US$71 million), compared to non-GAAP net income attributable to Trip.com Group's shareholders of RMB309 million for the same period in 2021 and non-GAAP net income attributable to Trip.com Group's shareholders of RMB1.0 billion for the previous quarter.

For the full year of 2022, net income attributable to Trip.com Group's shareholders was RMB1.4 billion (US$206 million), compared to net loss attributable to Trip.com Group's shareholders of RMB550 million in 2021. Excluding share-based compensation charges and fair value changes of equity securities investments and exchangeable senior notes, non-GAAP net income attributable to Trip.com Group's shareholders was RMB1.3 billion (US$189 million) in 2022, compared to non-GAAP net income attributable to Trip.com Group's shareholders of RMB1.4 billion in 2021.

Diluted earnings per ordinary share and per ADS was RMB3.12 (US$0.45) for the fourth quarter of 2022. Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes and their tax effects, non-GAAP diluted earnings per ordinary share and per ADS was RMB0.76 (US$0.11) for the fourth quarter of 2022. Each ADS currently represents one ordinary share of the Company.

For the full year of 2022, diluted earnings per share and per ADS was RMB2.14 (US$0.31). Excluding share-based compensation charges and fair value changes of equity securities investments and exchangeable senior notes, non-GAAP diluted earnings per share and per ADS was RMB1.97 (US$0.29).

As of December 31, 2022, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products was RMB59.6 billion (US$8.6 billion).

Conference Call

Trip.com Group's management team will host a conference call at 7:00 PM EST on March 6, 2023 (or 8:00 AM CST on March 7, 2023) following this announcement.

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

All participants must pre-register to join this conference call using the Participant Registration link below:
https://register.vevent.com/register/BI79594cfcc5c549ce8496fb769efffb42.

Upon registration, each participant will receive details for this conference call, including dial-in numbers and a unique access PIN. To join the conference, please dial the number provided, enter your PIN, and you will join the conference instantly.

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 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, the impact of COVID-19 pandemic to Trip.com Group's business operations, volatility in the trading price of Trip.com Group's ADSs or shares, 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 the variable interest entities and the contractual arrangements among Trip.com Group, the variable interest entities and their shareholders, and other risks outlined in Trip.com Group's filings with the U.S. Securities and Exchange Commission or the Stock Exchange of Hong Kong Limited. 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 adjusted net income attributable to Trip.com Group Limited, adjusted EBITDA, adjusted EBITDA margin and adjusted diluted earnings per ordinary share and per ADS, each of which is adjusted from the most comparable GAAP result to exclude the share-based compensation charges that are not tax deductible, fair value changes of equity securities investments and exchangeable senior notes, net of tax, and other applicable items. 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, does not have a standardized meaning under 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, fair value changes of equity securities investments and exchangeable senior notes and their tax effects 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; HKEX: 9961) is a leading global one-stop travel platform, integrating a comprehensive suite of travel products and services and differentiated travel content. It is the go-to destination for travelers in China, and increasingly for travelers around the world, to explore travel, get inspired, make informed and cost-effective travel bookings, enjoy hassle-free on-the-go support, and share travel experience. Founded in 1999 and listed on Nasdaq in 2003 and HKEX in 2021, the Company currently operates under a portfolio of brands, including Ctrip, Qunar, Trip.com and Skyscanner, with the mission "to pursue the perfect trip for a better world."

For further information, please contact:

Investor Relations
Trip.com Group Limited
Tel: +86 (21) 3406-4880 X 12229
Email: iremail@trip.com

 

 

Trip.com Group Limited

Unaudited Consolidated Balance Sheets

(In millions, except share and per share data)










December 31, 2021


December 31, 2022


December 31, 2022

RMB (million)

RMB (million)

USD (million)














ASSETS







Current assets:







Cash, cash equivalents and restricted cash


21,196


18,487


2,681

Short-term investments


29,566


25,545


3,703

Accounts receivable, net 


4,649


5,486


795

Prepayments and other current assets 


10,697


11,917


1,728








Total current assets


66,108


61,435


8,907








Property, equipment and software


5,534


5,204


755

Intangible assets and land use rights


13,046


12,825


1,859

Right-of-use asset


777


819


119

Investments (Includes held to maturity time deposit and
financial products of RMB13,112 million and RMB15,527
million as of December 31,2021 and December 31,
2022, respectively)


44,961


50,177


7,275

Goodwill


59,353


59,337


8,603

Other long-term assets


396


570


83

Deferred tax asset


1,684


1,324


192








Total assets


191,859


191,691


27,793








LIABILITIES







Current liabilities:







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


39,866


28,470


4,128

Accounts payable


6,019


7,569


1,097

Advances from customers


7,535


8,278


1,200

Other current liabilities


12,798


12,718


1,845

Total current liabilities


66,218


57,035


8,270








Deferred tax liability


3,527


3,487


506

Long-term debt


11,093


17,381


2,520

Long-term lease liability


400


534


77

Other long-term liabilities


165


235


34








Total liabilities


81,403


78,672


11,407








SHAREHOLDERS' EQUITY














Total Trip.com Group Limited shareholders' equity


109,677


112,283


16,279








Non-controlling interests


779


736


107








Total shareholders' equity


110,456


113,019


16,386








Total liabilities and shareholders' equity


191,859


191,691


27,793








 

 

Trip.com Group Limited

Unaudited Consolidated Statements of Income/(Loss)

(In millions, except share and per share data)


















Three Months Ended


Year Ended

December 31, 2021


September 30, 2022


December 31, 2022


December 31, 2022


December 31, 2021


December 31, 2022


December 31, 2022

RMB (million)


RMB (million)


RMB (million)


USD (million)


RMB (million)


RMB (million)


USD (million)

























































Revenue:















Accommodation reservation 


1,919


2,904


1,689


245


8,148


7,400


1,073

Transportation ticketing 


1,516


2,623


2,204


320


6,905


8,253


1,197

Packaged-tour 


177


387


164


24


1,105


797


116

Corporate travel


367


370


277


40


1,347


1,079


157

Others


703


613


697


101


2,524


2,526


366
















Total revenue


4,682


6,897


5,031


730


20,029


20,055


2,909
















Less: Sales tax and surcharges


(1)


(5)


(4)


(1)


(6)


(16)


(2)
















Net revenue


4,681


6,892


5,027


729


20,023


20,039


2,907
















Cost of revenue


(1,118)


(1,271)


(1,199)


(174)


(4,598)


(4,513)


(654)
















Gross profit


3,563


5,621


3,828


555


15,425


15,526


2,253
















Operating expenses:















Product development *


(2,236)


(2,491)


(2,104)


(305)


(8,992)


(8,341)


(1,209)

Sales and marketing *


(1,298)


(1,433)


(1,148)


(166)


(4,922)


(4,250)


(616)

General and administrative *


(733)


(843)


(816)


(118)


(2,922)


(2,847)


(413)
















Total operating expenses


(4,267)


(4,767)


(4,068)


(589)


(16,836)


(15,438)


(2,238)
















(Loss)/profits from operations


(704)


854


(240)


(34)


(1,411)


88


15
















Interest income 


757


453


458


66


2,132


2,046


297

Interest expense


(358)


(395)


(427)


(62)


(1,565)


(1,514)


(219)

Other (expense)/income


(433)


(492)


2,745


398


373


2,015


292
















(Loss)/income before income tax
expense and equity in income of
affiliates


(738)


420


2,536


368


(471)


2,635


385
















Income tax expense


(37)


(277)


(246)


(36)


(270)


(682)


(99)

Equity in (loss)/income of affiliates


(108)


102


(210)


(31)


96


(586)


(85)
















Net (loss)/income


(883)


245


2,080


301


(645)


1,367


201
















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


49


21


(23)


(3)


95


36


5
















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


(834)


266


2,057


298


(550)


1,403


206
















(Losses)/earnings per ordinary
share 















- Basic


(1.29)


0.41


3.17


0.46


(0.87)


2.17


0.31

- Diluted


(1.29)


0.41


3.12


0.45


(0.87)


2.14


0.31
















(Losses)/earnings per ADS 















- Basic


(1.29)


0.41


3.17


0.46


(0.87)


2.17


0.31

- Diluted


(1.29)


0.41


3.12


0.45


(0.87)


2.14


0.31
















Weighted average ordinary shares
outstanding 















- Basic


646,213,517


647,909,665


649,893,734


649,893,734


634,109,233


648,380,590


648,380,590

- Diluted


646,213,517


653,485,857


658,660,803


658,660,803


634,109,233


657,092,826


657,092,826
















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


























  Product development 


249


167


147


21


802


567


82

  Sales and marketing 


58


32


37


5


149


115


17

  General and administrative 


200


152


126


18


730


506


73


 

 

 

Trip.com Group Limited

Unaudited Reconciliation of  GAAP and Non-GAAP Results

(In millions, except % and per share data)


















Three Months Ended


Year Ended

December 31, 2021


September 30, 2022


December 31, 2022


December 31, 2022


December 31, 2021


December 31, 2022


December 31, 2022

RMB (million)


RMB (million)


RMB (million)


USD (million)


RMB (million)


RMB (million)


USD (million)










































Net (loss)/income


(883)


245


2,080


301


(645)


1,367


201

Less: Interest income


(757)


(453)


(458)


(66)


(2,132)


(2,046)


(297)

Add: Interest expense


358


395


427


62


1,565


1,514


219

Add: Other expense/(income)


433


492


(2,745)


(398)


(373)


(2,015)


(292)

Add: Income tax expense


37


277


246


36


270


682


99

Add: Equity in loss/(income) of affiliates


108


(102)


210


31


(96)


586


85

(Loss)/profit from operations


(704)


854


(240)


(34)


(1,411)


88


15

Add: Share-based compensation


507


351


310


44


1,681


1,188


172

Add: Depreciation and amortization


251


214


216


31


1,021


875


127

Adjusted EBITDA


54


1,419


286


41


1,291


2,151


314

Adjusted EBITDA margin


1 %


21 %


6 %


6 %


6 %


11 %


11 %
















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


(834)


266


2,057


298


(550)


1,403


206

Add: Share-based compensation


507


351


310


44


1,681


1,188


172

Add: Loss/(gain) from fair value changes of equity securities
investments and exchangeable senior notes


581


490


(1,945)


(282)


170


(1,338)


(194)

Add: Tax effects on fair value changes of equity securities
investments and exchangeable senior notes


55


(72)


76


11


55


41


5

Non-GAAP net income attributable to Trip.com Group Limited


309


1,035


498


71


1,356


1,294


189

Weighted average ordinary shares outstanding-
  Diluted-non GAAP 


648,139,290


653,485,857


658,571,739


658,571,739


640,866,173


657,092,826


657,092,826

Non-GAAP Diluted earnings per share 


0.48


1.58


0.76


0.11


2.12


1.97


0.29

Non-GAAP Diluted earnings per ADS 


0.48


1.58


0.76


0.11


2.12


1.97


0.29
















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=RMB6.8972 on December 30, 2022 published by the Federal Reserve Board.
















 

 

View original content:https://www.prnewswire.com/news-releases/tripcom-group-limited-reports-unaudited-fourth-quarter-and-full-year-of-2022-financial-results-301763134.html


Source: Trip.com Group Limited Related Stocks: HongKong:9961 NASDAQ:TCOM

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