- $TC0M - Earnings Analysis: Strong growth in net revenue, accommodation reservation, and transportation ticketing.
Business Model
Trip.com Group generates revenue from accommodation reservation, transportation ticketing, packaged tours, corporate travel management and others.
Revenue Sources
- Accommodation reservation revenue accounted for 40% of the total revenue in 2024.
- Transportation ticketing revenue accounted for 38% of the total revenue in 2024.
- Packaged-tour revenue accounted for 8% of the total revenue in 2024.
- Corporate travel revenue accounted for 5% of the total revenue in 2024.
Income Statement Analysis
- Net revenue increased by 23% year-over-year, primarily driven by stronger travel demand.
- Accommodation reservation revenue increased by 33% year-over-year.
- Transportation ticketing revenue increased by 16% year-over-year.
- Packaged-tour revenue increased by 24% year-over-year.
- Corporate travel revenue increased by 11% year-over-year.
Balance Sheet Analysis
- Total assets increased by 10.70% from Dec 31, 2023 to Dec 31, 2024.
- Total liabilities increased by 3.09% from Dec 31, 2023 to Dec 31, 2024.
- Total shareholders' equity increased by 15.80% from Dec 31, 2023 to Dec 31, 2024.
Capital Allocation
The company's board of directors has authorized a share repurchase program of up to US$400 million and a cash dividend totaling approximately US$200 million for 2025.
Management Commentary
The travel market has shown remarkable resilience in 2024, driven by travelers' growing desire for exploration and cultural experiences.
We achieved solid results across market segments over the past year.
With a promising market outlook, we are well-positioned to deliver outstanding travel services globally.
Overall Sentiment: Optimistic, focused on investment in AI and promoting inbound travel.
Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.