H World Group Limited Reports Second Quarter 2024 Earnings

H World Group Limited Reports Second Quarter 2024 Earnings

Overview

H World Group Limited (NASDAQ: HTHT) has reported its unaudited financial results for the second quarter and the first half ended June 30, 2024.

Key Financial Metrics

Interpretation: H World Group Limited reported a solid financial performance for Q2 2024, highlighted by a significant year-over-year and quarter-over-quarter increase in both revenue and adjusted EBITDA. Achieving revenue at the higher end of the previously announced guidance range, the company has demonstrated robust business operations and effective cost management.

Revenue Performance Across Major Segments

Interpretation: Both the Legacy-Huazhu and Legacy-DH segments showcased strong year-over-year revenue growth, driven by continuous network expansion. Legacy-DH also achieved notable quarter-over-quarter growth due to seasonality and business recovery.

Key Operational Data

Comments from Company Officers

Jin Hui, CEO of H World, stated: "We are pleased to announce that the Group and Legacy-Huazhu have achieved a remarkable 10,000-hotel milestone during the second quarter of 2024. This milestone marks a new beginning for the Group. Despite near-term volatilities in macro and consumption, China's overall travel demand remains robust, and we are well-positioned to seize opportunities and scale new heights."

Dividends and Share Repurchase Program

The Company's board of directors has announced a three-year shareholder return plan with a distribution amount of up to US$2 billion. A semi-annual cash dividend for the first half of 2024, totaling approximately US$200 million, has been declared. Additionally, a five-year share repurchase program of American Depositary Shares (ADS) up to US$1 billion has been approved.

Forward Guidance

For the third quarter of 2024, H World anticipates revenue growth in the range of 2%-5% year-over-year. The company has revised its hotel opening guidance for the full year 2024, raising it to over 2,200 hotels from the previous target of around 1,800.

Stock Price Movement

Post-earnings announcement, H World's stock reported a minor increase of 0.36%.

In summary, H World Group Limited has demonstrated robust financial and operational performance in the second quarter of 2024, reflecting its strategic expansions and resilient business model. The forward-looking guidance and shareholder return initiatives also signal confidence in sustained growth and enhanced shareholder value.