The Trip.com Q2 results showed resilient travel demand but a large regulatory charge pushed the company into a net loss. Trip.com Group (NASDAQ: TCOM) reported second-quarter revenue of RMB15.7 billion, or about $2.3 billion, up 6% from a year earlier.
Non-GAAP diluted earnings were RMB7.27 per American depositary share, compared with RMB7.20 a year earlier. On a reported basis, however, the company posted a net loss of RMB2.4 billion, primarily because of an RMB5.2 billion antimonopoly penalty imposed by China’s State Administration for Market Regulation.
Trip.com Q2 Results Highlight International Travel Growth
Revenue on Trip.com’s international platform increased by more than 50% year over year, while inbound travel revenue grew at a high double-digit rate. Management described inbound and travel between overseas markets as structural growth drivers and said the group is expanding travel and lifestyle offerings.
Accommodation-reservation revenue rose 6% to RMB6.6 billion. Packaged-tour revenue increased 8% to RMB1.2 billion, and corporate-travel revenue advanced 11% to RMB771 million. Transportation-ticketing revenue declined 1% from a year earlier and 12% sequentially to RMB5.4 billion as elevated energy prices and geopolitical volatility weighed on activity.
The figures are detailed in Trip.com’s official second-quarter earnings release. Excluding the antimonopoly penalty, the company said quarterly net income would have been RMB2.7 billion, while non-GAAP net income attributable to shareholders was RMB4.8 billion.
Regulatory Costs Complicate an Otherwise Resilient Quarter
The Trip.com Q2 results illustrate the contrast between healthy international demand and regulatory risk in the company’s home market. General and administrative expenses jumped to RMB6.3 billion because of the penalty; without it, those expenses would have been approximately RMB1.2 billion.
Investors will focus on whether international bookings can maintain their pace, how quickly transportation demand recovers and whether compliance changes affect margins. The company ended June with RMB100.5 billion in cash, restricted cash, short-term investments and other qualifying financial products, giving it substantial liquidity as it navigates those pressures.
