Qilai Shen/Bloomberg via Getty Images
Key findings
-
Online travel platform Trip.com Group reported better-than-expected profits and revenue as demand for cross-border travel and leisure trips rose sharply.
-
China’s largest online travel service said revenue was boosted last quarter by the resilience of travel consumption in China.
-
Trip.com’s revenue from accommodation reservations, transportation tickets, package tours and business travel all increased.
-
The company’s U.S.-listed shares rose nearly 9 percent on Tuesday after the earnings report was released.
US-listed shares of Trip.com Group Ltd. (TCOM) took off on Tuesday after China’s largest online travel service reported better-than-expected results due to booming demand for outbound travel.
The company reported second-quarter earnings per share (EPS) of RMB7.25 (US$1), with revenue increasing 14% year-on-year to RMB12.8 billion. Both figures beat analyst estimates provided by Visible Alpha.
Trip.com said the increase in revenue was due to more people traveling in China, especially during the holiday season. Chief Executive James Liang said cross-border travel was particularly strong. CEO Jane Sun added that the company was benefiting from “the resilience of travel consumption in China.”
Increases in all sales categories
Revenue from accommodation reservations increased 20% to RMB5.1 billion in the second quarter. Revenue from travel tickets increased 1% to RMB4.9 billion and revenue from package tours increased 42% to RMB1.0 billion. Revenue from business travel increased 8% to RMB633 million.
Trip.com American Depositary Receipts (ADRs) gained 8.6% to close at $45.97 on Tuesday, and are up about 28% since the beginning of the year.
Read the original article on Investopedia.
