Trip.com Shares Gain On Q1 Beat, Thanks To Easing Restrictions In China

Trip.com Group Ltd TCOM reported Q1 2023 revenues of $1.34 billion, beating the consensus of $1.13 billion. 

The company's business significantly recovered since travel restrictions and quarantine requirements lifted in China.  

Domestic hotel bookings grew by over 100% Y/Y, with same-city staycation hotel bookings increasing by 150% vs. the same period in 2019.

Outbound hotel and air reservations recovered to more than 40% vs. the same period in 2019.

Air-ticket bookings rose by over 200% Y/Y in the quarter.

Adjusted EBITDA stood at $410 million, with margins of 31% in the quarter.

Adjusted EPS per ADS stood at $0.45, surpassing the consensus of $0.25 a year ago.

As of March 31, 2023, the company held $9.9 billion in cash and equivalents.

"Over the past three years, we have focused on strengthening our supply chain, content offerings, and service quality. Such improvements empower us to better capture the pent-up demand for travel and establish a solid foundation for sustainable growth," remarked Jane Sun, CEO.

Price Action: TCOM shares are trading higher by 4.29% at $35.76 premarket on the last check Thursday.