Tongcheng Travel (780) Q3 2025 earnings summary

Executive summary

• Achieved record highs in revenue, adjusted net profit, and paying users in Q3 2025, driven by strong OTA performance, margin expansion, and robust user engagement, especially in non-first-tier cities.

• Completed acquisition of Wanda Hotel Management in October 2025, adding 239 hotels and accelerating hotel management growth.

• Advanced AI-driven solutions, including the launch of DeepTrip, and enhanced digital infrastructure for hotels and airports.

• Strengthened mass market position through diversified channels, innovative marketing, and partnerships, notably with Tencent/Weixin.

• Achieved AAA MSCI ESG rating, ranking among top 5% globally, and made progress in sustainability and data security.

Financial highlights

• Total revenue reached RMB 5,509.1 million, up 10.4% year-over-year; core OTA revenue grew 14.9% to RMB 4,608.8 million.

• Adjusted net profit increased 16.5% to RMB 1,060.2 million, with margin up to 19.2%.

• Adjusted EBITDA rose 14.5% to RMB 1,510.3 million, margin at 27.4%.

• Gross profit grew 14.4% to RMB 3,621.8 million, with gross margin at 65.7%.

• Earnings per share (basic and diluted) were RMB 0.42, up 20% year-over-year.

Outlook and guidance

• Outbound business expected to contribute 10%-15% of revenue in coming years, with higher margins than domestic business.

• Hotel management business positioned as a key long-term growth driver, with over 3,000 hotels in operation and 1,500 in the pipeline.

• Focus on sustainable growth, margin improvement, and operational efficiency, with continued investment in AI and technology.

• Positive outlook for China's travel industry, supported by government policy and shifting consumer preferences.