- Trip.com Group Ltd (NASDAQ:TCOM) said its first-quarter FY22 sales remained flat year-on-year at RMB4.1 billion ($649 million). Net revenue decreased by 12% Q/Q.
- The sequential decrease was caused by the impact of the latest wave of COVID-19 resurgence in China.
- Accommodation reservation revenue fell 8% Y/Y, transportation ticketing increased 10%, packaged tours revenue fell 27%, and corporate travel dropped 12%.
- The gross margin for the period contracted 80 basis points Y/Y to 74%. The operating loss for the quarter was RMB(359) million or $(55) million versus a loss of RMB(787) million last year.
- Adjusted EBITDA was RMB91 million ($16 million) with a margin of 2%. It reported a loss per share of RMB(1.52) or $(0.24).
- Trip.com Group held RMB63.3 billion ($10.0 billion) in cash and equivalents as of March 31, 2022.
- "In the first quarter, we are encouraged to see solid growth of travel demand in the global markets, especially across Europe and the Asia Pacific, as more countries started to ease travel restrictions," said Executive Chairman James Liang.
- Price Action: TCOM shares are trading higher by 13.55% at $27.90 in premarket on the last check Tuesday.
