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01/11 04:05
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong growth in inbound and outbound travel, strategic AI and technology integration, and international expansion, which are positive indicators. The Q&A section reveals no significant geopolitical impact, stable hotel prices, and robust travel demand. Management's focus on AI and customer service amid competition is reassuring. Despite unclear margin guidance, the overall sentiment is positive, with strong growth and strategic initiatives likely to drive stock price upwards.
Net Revenue RMB 18.3 billion, representing a 16% increase year-over-year and a 24% increase from the previous quarter, reflecting robust travel demand throughout the summer and the Golden Week holiday.
Accommodation Reservation Revenue RMB 8.0 billion, representing an 18% increase year-over-year and a 29% increase quarter-over-quarter, mainly driven by strong momentum in outbound and international hotel bookings along with sustained strength in domestic demand.
Transportation Ticketing Revenue RMB 6.3 billion, representing a 12% increase year-over-year and a 17% increase quarter-over-quarter, with international air bookings showing robust growth and outbound air bookings continuing to outpace the market.
Packaged Tour Revenue RMB 1.6 billion, representing a 3% increase year-over-year and a 49% increase quarter-over-quarter, primarily driven by the expansion of international offerings.
Corporate Travel Revenue RMB 756 million, representing a 15% increase year-over-year and a 9% increase quarter-over-quarter, driven by more companies adopting managed corporate travel services.
Adjusted Product Development Expenses Increased by 12% year-over-year, mainly due to personnel-related expenses.
Adjusted G&A Expenses Increased by 6% year-over-year, mainly due to personnel-related expenses.
Adjusted Sales and Marketing Expenses Increased by 26% from the previous quarter and 23% from the same period last year, primarily driven by broader marketing investments with incremental spend allocated to international expansion.
Adjusted EBITDA RMB 6.3 billion, compared with RMB 5.7 billion in the same period last year and RMB 4.8 billion in the previous quarter.
Diluted Earnings Per Ordinary Share and Per ADS RMB 28.61 or USD 4.02 million for the third quarter of 2025, elevated primarily due to a one-time gain from the divestment of one of the overseas investments.
Non-GAAP Diluted Earnings Per Ordinary Share and Per ADS RMB 27.56 or USD 3.87 million for the third quarter.
Cash and Cash Equivalents RMB 107.7 billion or USD 15.1 billion as of September 30, 2025.
AI-powered tools: Trip.Planner upgrade led to a 180% year-over-year surge in unique visits.
New product launch: Taste of China, an immersive dining experience for international visitors, was introduced to explore Chinese culture through culinary traditions.
Layover experience: Free layover experience launched at Hong Kong International Airport for transit travelers with premium tours to landmarks.
Old Friends Club: Flagship store launched in Shanghai for senior travelers, along with themed trips and dedicated service teams.
Entertainment partnerships: Strategic partnerships with live entertainment companies and Cityline Group to enhance event booking capabilities.
Outbound travel growth: Outbound hotel and air bookings grew by close to 20% year-over-year, reaching 140% of 2019 levels.
Golden Week demand: Outbound bookings surged by 30% year-over-year during the holiday, with Europe as a key growth region.
Inbound travel growth: Inbound travel bookings grew by over 100%, with Asia Pacific as the largest source.
International bookings: Grew by 60% year-over-year, with Asia Pacific as the largest contributor.
Revenue growth: Net revenue increased by 16% year-over-year to RMB 18.3 billion (USD 2.56 billion).
Accommodation revenue: Increased by 18% year-over-year to RMB 8.0 billion (USD 1.12 billion).
Transportation ticketing revenue: Increased by 12% year-over-year to RMB 6.3 billion (USD 882 million).
Packaged tour revenue: Increased by 3% year-over-year to RMB 1.6 billion (USD 224 million).
Corporate travel revenue: Increased by 15% year-over-year to RMB 756 million (USD 106 million).
AI and technology: AI tools introduced for hotels to overcome language barriers, generate content, and improve service standards.
Senior traveler focus: Tailored products and services for affluent senior travelers, including themed trips and dedicated service teams.
Younger traveler trends: Revenue from younger travelers grew by triple digits, driven by demand for concerts and live experiences.
Sustainability: Efforts to drive sustainable growth across the travel industry and local economies.
Regulatory Risks: Forward-looking statements involve inherent risks and uncertainties, and results may differ materially due to potential risks and uncertainties outlined in public filings with the SEC.
Economic and Market Conditions: The company's performance is tied to robust travel demand, which could be impacted by economic downturns or changes in consumer confidence.
Competitive Pressures: The company is investing heavily in marketing and international expansion, which could strain resources and face challenges from competitors.
Operational Costs: Increased personnel-related expenses and broader marketing investments have led to higher adjusted G&A and sales and marketing expenses.
Dependence on Travel Trends: The company's growth is heavily reliant on travel demand, which could be affected by unforeseen events like pandemics or geopolitical tensions.
Technological and AI Integration: The company is leveraging AI for operational improvements, but there is a risk of technological failures or inability to keep up with advancements.
Geopolitical Risks: Outbound travel growth is tied to regions like Japan, South Korea, and Europe, which could be affected by geopolitical tensions or policy changes.
Future travel demand: Travel demand is expected to remain strong, driven by vibrant domestic travel in China and a steady rise in outbound journeys. The company remains optimistic about the future of travel, leveraging AI innovation and delivering personalized services.
Outbound travel growth: Outbound hotel and air bookings grew by close to 20% year-over-year in Q3 and reached about 140% of 2019 levels. This trend is expected to continue, with Europe being a key growth region due to increased flight capacity and demand for in-depth experiences.
Inbound travel growth: Inbound travel bookings grew by over 100% year-over-year in Q3. The Asia Pacific region remains the largest source of inbound travelers, with Europe and the U.S. also seeing strong growth. The company aims to further enhance inbound travel experiences through initiatives like free layover tours.
International market expansion: International bookings grew by around 60% year-over-year in Q3, with the Asia Pacific region as the largest contributor. Mobile bookings now account for over 70% of total bookings, and the company plans to continue expanding its international offerings.
Senior traveler market: The company is focusing on affluent senior travelers, whose spending power is three times that of younger travelers. Initiatives include tailored products, themed trips, and dedicated service teams to cater to this growing segment.
Younger traveler trends: Revenue from younger travelers grew by triple digits in Q3, driven by demand for concerts and live experiences. The company has announced multi-year strategic partnerships with entertainment companies to capitalize on this trend.
Technology and AI innovation: The company is leveraging AI to enhance the travel ecosystem, including AI communication tools for hotels, AI content generators, and updated hotel scoring algorithms. These efforts aim to improve service standards and create seamless travel experiences.
Sustainable growth and long-term value creation: The company is confident in its disciplined approach to investment and execution, focusing on sustainable growth and long-term value creation.
The selected topic was not discussed during the call.
The earnings call highlights strong growth in inbound and outbound travel, strategic AI and technology integration, and international expansion, which are positive indicators. The Q&A section reveals no significant geopolitical impact, stable hotel prices, and robust travel demand. Management's focus on AI and customer service amid competition is reassuring. Despite unclear margin guidance, the overall sentiment is positive, with strong growth and strategic initiatives likely to drive stock price upwards.
The earnings call summary indicates strong financial performance with a 16% YoY revenue increase and robust EBITDA. The Q&A section highlights management's confidence in growth, strategic focus on experiential and sustainable travel, and a significant share repurchase program. Despite some concerns over competition and pricing pressure, the company's strategic initiatives and market resilience suggest a positive outlook. Additionally, the new $5 billion share repurchase program supports shareholder value, further bolstering positive sentiment.
The earnings report shows strong financial performance with a 16% YoY revenue increase and robust growth in accommodation and transportation. The Q&A section highlights positive travel trends and a commitment to shareholder returns through buybacks and dividends. Despite some management vagueness on geopolitical impacts, the overall sentiment remains positive due to strong growth metrics, optimistic future guidance, and strategic initiatives like AI innovation and international expansion.
The earnings call indicates strong financial growth, particularly in accommodation and transportation revenue, alongside a robust cash position. The Q&A reveals positive trends in travel demand and competitive positioning, despite some management evasiveness. Share repurchase and dividend plans further support a positive outlook. The ratings are bolstered by optimistic guidance and strategic international expansion efforts, suggesting a likely stock price increase in the short term.
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