On February 24, 2025, Trip.com Group Ltd (TCOM, Financial), a leading global travel service provider, released its unaudited financial results for the fourth quarter and full year of 2024. The company reported significant growth in its international business segments, with outbound hotel and air ticket bookings surpassing pre-COVID levels. The company's net revenue for the fourth quarter reached RMB12.7 billion, marking a 23% year-over-year increase, while full-year net revenue grew by 20% to RMB53.3 billion. Trip.com Group also announced a new capital return program, including a share repurchase and cash dividend for 2024.
Positive Highlights
- International business segments experienced robust growth, with outbound hotel and air ticket bookings exceeding 120% of pre-COVID levels.
- Fourth-quarter net revenue increased by 23% year-over-year to RMB12.7 billion.
- Full-year net revenue grew by 20% to RMB53.3 billion.
- Net income for the fourth quarter was RMB2.2 billion, up from RMB1.3 billion in the same period of 2023.
- Adjusted EBITDA for the fourth quarter improved to RMB3.0 billion.
Negative Highlights
- Fourth-quarter net revenue decreased by 20% from the previous quarter due to seasonality.
- Accommodation reservation revenue for the fourth quarter decreased by 24% from the previous quarter.
- Transportation ticketing revenue for the fourth quarter decreased by 15% from the previous quarter.
Financial Analyst Perspective
Trip.com Group Ltd's financial performance in 2024 demonstrates a strong recovery in the travel sector, particularly in international markets. The company's ability to surpass pre-COVID booking levels is a testament to its strategic initiatives and market positioning. The year-over-year growth in net revenue and net income indicates effective cost management and operational efficiency. However, the seasonal decline in revenue from the previous quarter highlights the need for strategies to mitigate such fluctuations.
Market Research Analyst Perspective
The travel industry's resilience is evident in Trip.com Group's 2024 results, with a notable rebound in international travel demand. The company's focus on AI and innovation, as well as its commitment to enhancing the travel experience, positions it well for future growth. The capital return program, including share repurchases and dividends, reflects confidence in the company's financial health and commitment to shareholder value. As the global travel landscape continues to evolve, Trip.com Group's strategic investments and partnerships will be crucial in maintaining its competitive edge.
Frequently Asked Questions (FAQ)
Q: What was Trip.com Group's net revenue for the fourth quarter of 2024?
A: The net revenue for the fourth quarter of 2024 was RMB12.7 billion.
Q: How did international bookings perform in the fourth quarter of 2024?
A: International bookings saw significant growth, with outbound hotel and air ticket bookings exceeding 120% of pre-COVID levels.
Q: What is included in Trip.com Group's capital return program for 2025?
A: The program includes a share repurchase of up to US$400 million and a cash dividend of approximately US$200 million for 2024.
Q: How did Trip.com Group's net income for the fourth quarter of 2024 compare to the same period in 2023?
A: Net income for the fourth quarter of 2024 was RMB2.2 billion, compared to RMB1.3 billion in the same period of 2023.
Read the original press release here.
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