Key Takeaways
- Online travel platform Trip.com Group reported better-than-expected profit and sales as demand for cross-border and holiday travel surged.
- The biggest Chinese online travel service said revenue for the latest quarter was boosted by the resilience of travel consumption in China.
- Trip.com’s sales for accommodation reservations, transportation ticketing, package tours, and corporate travel were all higher.
- Its U.S.-listed shares jumped nearly 9% Tuesday after the earnings news was released.
U.S.-listed shares of Trip.com Group Ltd. (TCOM) took off Tuesday after the largest online travel service in China posted better-than-expected results on booming demand for foreign trips.
The company reported second-quarter earnings per share (EPS) of RMB7.25 ($1), with revenue up 14% year-on-year to RMB12.8 billion. Both exceeded analysts’ estimates provided by Visible Alpha.
Trip.com said the sales increase came as more people in China traveled, particularly during holiday periods. Executive Chair James Liang said that cross-border trips were especially strong. CEO Jane Sun added that the company benefited from “the resilience of travel consumption in China.”
Increases Across Revenue Categories
Accommodation reservation revenue for the second quarter climbed 20% to RMB5.1 billion. Revenue rose 1% to RMB4.9 billion for transportation ticketing, and it soared 42% to RMB1.0 billion for package tours. Corporate travel revenue rose 8% to RMB633 million.
Trip.com American depositary receipts (ADRs) gained 8.6% Tuesday to close at $45.97. They are up about 28% higher year-to-date.
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