Ctrip Group released 2022Q2 financial report: net revenue of 4 billion yuan exceeded market expectations

time:2022-12-08 06:24:12 source:scripttoolbox.com author:Memory module
Ctrip Group released 2022Q2 financial report: net revenue of 4 billion yuan exceeded market expectations

On September 22, 2022 Beijing time, Ctrip Group (NASDAQ: TCOM and HKEX: 9961) announced its unaudited financial results for the second quarter ended June 30, 2022. The financial report shows that in the second quarter of 2022, Ctrip Group’s net operating income was 4 billion yuan, exceeding previous market expectations; adjusted EBITDA was 355 million yuan. The accelerated recovery of the domestic local hotel market in the second half of the second quarter and the substantial growth of emerging businesses such as car rental and private group tours are the main highlights of Ctrip's performance in the domestic market. This is the main reason why Ctrip's performance this quarter exceeded expectations. Domestic local hotel bookings were reversed at the end of the quarter. The financial report shows that Ctrip Group's operating income in the second quarter of 2022 was 4 billion yuan. From the perspective of main business, in the second quarter of this year, Ctrip's accommodation booking revenue was 1.4 billion yuan, transportation ticketing revenue was 1.8 billion yuan, tourism and vacation business revenue was 122 million yuan, and business travel management business revenue was 210 million yuan. Affected by the impact of the epidemic, a number of Ctrip's domestic businesses showed sluggish performance in April and May and a rapid rebound in June, showing strong resilience. Accommodation booking is a typical representative. Ctrip data shows that from mid-May to the end of June, hotel reservations in South China and West China, which were less affected by the epidemic, were the first to recover, and exceeded the level of the same period in 2019; in late June, Ctrip Group's domestic hotel reservations have fully recovered and exceeded the same period in 2019. Level. Among them, local hotels are the main force driving the rebound of Ctrip's accommodation bookings. The financial report shows that in the second quarter of this year, Ctrip Group's local hotel bookings increased by more than 30% compared with the same period in 2019. With the implementation of the precise epidemic prevention policy, the recovery momentum continued to the third quarter. In addition, since the end of 2021, the number of hotels covered by Ctrip's hotel packages has increased by 20%, of which 65% are high-star hotels, and the product power has been further strengthened. Since the beginning of this year, Ctrip has accelerated a number of emerging businesses in response to changes in domestic market demand. In the first half of this year, the transaction volume of Ctrip's domestic car rental business increased by more than 90% compared with the same period in 2019; the small group products with high comfort are favored by the market, and the transaction volume of Ctrip's private group products in the second quarter increased by nearly 2 times from the previous quarter. Revenues in European and American markets exceeded pre-epidemic levels. The Trip.com brand has doubled in multiple businesses in the second quarter of this year. Ctrip's overseas business continued the trend of the first quarter and continued to maintain high growth. In general, Ctrip's revenue in the European and American markets has exceeded that of the same period in 2019, and the business in the Asia-Pacific market is also growing rapidly; the proportion of overseas business in Ctrip's overall revenue is increasing, and its contribution has jumped significantly. Trip.com is an important sub-brand leading the growth of Ctrip's overseas business. In the first half of 2022, Trip.com entered the ranks of the top 10 most downloaded online travel apps in the world for the first time, with downloads reaching a record high. From the specific business of the Trip.com brand, in the second quarter, the number of air ticket bookings increased by about 680% year-on-year. In July, the overall air ticket booking volume has recovered to about 90% before the epidemic; local hotel bookings increased by 300% compared with 2019. The recovery growth rate in the first quarter of this year was 50% higher; ticket sales increased by more than 100% compared with the same period in 2019, and merchandise coverage increased by more than 500% compared with the same period last year. In the first half of this year, the transaction volume of the car rental business increased by more than 7 times year-on-year. Driven by the star brand Trip.com, the overall growth of Ctrip’s overseas business has been strong, and the number of air tickets and hotel bookings on overseas platforms has increased by more than 100% year-on-year, of which hotel bookings have increased by more than 50% compared with 2019, and overseas hotels have recovered faster than the industry; overseas; Destination play bookings grew 24% sequentially and maintained triple-digit year-over-year growth in the first half of 2022. In addition, in the first half of this year, Ctrip's overseas business travel hotel transaction volume increased by 540% year-on-year. Geographically, in the second quarter, Europe was the fastest growing market for Ctrip’s international business – hotel bookings increased by nearly 400% year-on-year, and air ticket bookings were close to 2019 levels. In addition, in Hong Kong, South Korea, Singapore, Malaysia, the United States and the United Kingdom, Ctrip's overall hotel bookings all showed triple-digit growth compared to 2019. Steady growth in transaction conversion Hedging downward pressure both internally and externally Since the "tourism marketing hub" strategy was proposed more than a year ago, Ctrip's content ecosystem has expanded significantly. In the second quarter, the average daily user-generated content on the Ctrip platform increased by 16% year-on-year, the number of KOLs increased by 17% compared with the first quarter, and the average user content views increased by about 50%. The high transaction conversion characteristics of Ctrip Marketing continued in this quarter. In the second quarter of this year, the conversion rate of viewing transactions on Ctrip’s live broadcast platform increased by 62% month-on-month. In the first half of the year, Ctrip’s official live broadcast pre-sale transaction volume increased by nearly 50% compared with the second half of 2021. Through a series of marketing activities, in the second quarter, Ctrip Planet account The direct transaction volume in the flagship store increased by 31% month-on-month, and the content conversion transaction volume of the Ctrip word-of-mouth hotel list increased by 34% month-on-month. In terms of membership marketing, up to now, more than 30 million users have joined the joint membership program jointly created by Ctrip and hotels, which has effectively boosted the growth of hotel customer acquisition and transaction volume. A total of 240,000 hotels have joined Ctrip's "Priority Club", providing users with additional benefits including free breakfast and free room upgrades. As an important starting point for Ctrip to help rural revitalization, Ctrip fake farms also made new breakthroughs in the first half of this year. As of June this year, Ctrip has deployed a total of 9 fake farms across the country, receiving customers from 30 regions across the country, and the user repurchase rate exceeds 30%. In addition, in the first half of this year, with the theme of solar terms, farming, and intangible cultural heritage, bringing together the fake farm has developed and implemented nearly 20 cultural and creative projects, providing multi-dimensional assistance for the implementation of cultural industry empowerment of rural revitalization.

(Responsible editor:Power Supply)