Tongcheng Travel (780) Q3 2024 earnings summary

Executive summary

• Achieved record highs in quarterly revenue and net profit, with revenue up 51.3% year-over-year to RMB 5.0 billion and adjusted net profit up 46.6% to RMB 910 million, driven by strong domestic and international travel demand and strategic execution.

• Served 1.9 billion accumulated travelers, a 19.9% increase year-over-year, and saw strong user growth with MPUs up 5% to 46.4 million and APUs up 3.4% to 232.4 million.

• Strengthened position in China's mass market, with 87% of registered users and 71% of new paying Weixin users from non-first-tier cities.

• Enhanced user engagement and loyalty through targeted marketing, enriched membership privileges, and technology-driven improvements, especially among younger users.

• Continued investment in technology, ESG initiatives, and expansion of hotel and offline agency networks.

Financial highlights

• Quarterly revenue reached RMB 5.0 billion, up 51.3% year-over-year, and adjusted net profit hit RMB 910 million, with an 18.2% margin.

• Core OTA revenue was RMB 4.0 billion, up 21.6% year-over-year; tourism segment revenue reached RMB 978.7 million.

• Accommodation reservation revenue set a new record at RMB 1.4 billion, up 22% year-over-year.

• Adjusted EBITDA reached RMB 1.3 billion, a record high with a 26.4% margin and 51.6% year-over-year growth.

• Cash, cash equivalents, and short-term investments totaled RMB 8.9 billion as of September 30, 2024.

Outlook and guidance

• Optimistic about Q4 and 2025, expecting continued growth in both domestic and outbound travel, supported by favorable government policies and evolving consumer preferences.

• Plans to expand outbound travel business, enhance user value, and pursue strategic investments for long-term growth.

• International business expected to account for around 5% of core OTA revenue in 2024, with further increases projected over the next 2–3 years.

• Focus on ESG, corporate governance, and social responsibility to create stakeholder value.