Shulou(Shulou.com)11/24 Report--

According to news in the morning of March 7, Beijing time, Nasdaq:TCOM today released the company's unaudited financial results for the fourth quarter and the whole year ended December 31, 2022. According to the financial report, Ctrip's fourth-quarter net revenue was 5 billion yuan ($729 million), up 7% from a year earlier and down 27% from the previous quarter. Net profit was 2.1 billion yuan ($301 million), compared with a net loss of 883 million yuan in the same period last year, compared with a net profit of 245 million yuan in the previous quarter.

For the entire fiscal year 2022, Ctrip's net revenue was 20 billion yuan ($2.9 billion), unchanged from the previous fiscal year, while its net profit was 1.4 billion yuan ($201 million), compared with a net loss of 645 million yuan in the previous fiscal year.

Comparison of fourth-quarter and full-year results with analysts' expectations: 14 Wall Street analysts had on average expected Ctrip's fourth-quarter net revenue to reach $702.47 million, according to data provided by Yahoo Finance. Ctrip's fourth-quarter net revenue was 5 billion yuan ($729 million), exceeding analysts' expectations, according to the financial report.

In addition, 11 Wall Street analysts had on average expected Ctrip to lose $0.03 per share in the fourth quarter, which did not comply with US GAAP. Excluding equity incentive fees including other income / expenses and changes in the fair value of equity investments and exchangeable preferred notes and their tax impact (not in accordance with US GAAP), Ctrip Group's diluted earnings per depositary receipt in the fourth quarter of 2022 was 0.76 yuan ($0.11), much better than analysts expected, according to the financial report.

On average, 28 Wall Street analysts expected Ctrip's net revenue to reach $2.88 billion in 2022, according to data provided by Yahoo Finance. Ctrip's net revenue in 2022 was 20 billion yuan ($2.9 billion), exceeding analysts' expectations, according to the financial report.

In addition, 23 Wall Street analysts had on average expected Ctrip's earnings per share that did not comply with US GAAP to reach $0.15 in 2022. Excluding equity incentive fees including other income / expenses and fair value changes in equity investments and exchangeable preferred notes (not in accordance with GAAP), Ctrip's full-year diluted income per depositary receipt was 1.97 yuan ($0.29), exceeding analysts' expectations, according to the financial report.

Business highlights in the fourth quarter and the whole year of 2022: China's domestic business remains resilient, while international business continues to show a strong recovery momentum.

-outbound air ticket bookings and hotel bookings increased by more than 200% and 140% respectively in the fourth quarter compared with the same period last year.

Total air ticket bookings on the company's global platform increased by 80% in the fourth quarter compared with the same period last year.

From the perspective of the annual dimension, among the four main businesses, the revenue of accommodation booking business is 7.4 billion yuan, that of traffic ticketing business is 8.3 billion yuan, that of tourism vacation business is 797 million yuan, and that of business travel management business is 1.1 billion yuan.

According to the latest data released by the International Air Transport Association (IATA), global air passenger traffic increased by 64.4% in 2022 compared with the same period last year. Thanks to the strong recovery of the overseas civil aviation market, the overall air ticket booking of Ctrip International platform increased by more than 80% in the fourth quarter of 2022 compared with the same period last year.

Not only that, Ctrip Group traffic ticketing revenue in the fourth quarter and the whole year to maintain a high growth rate. Among them, in the fourth quarter of 2022, traffic ticketing revenue was 2.2 billion yuan, an increase of 45% over the same period last year. In 2022, traffic ticketing revenue was 8.3 billion yuan, an increase of 20% over the same period last year.

Since the fourth quarter of 2022, with the intensive release of favorable policies of inbound and outbound tourism, the recovery momentum of inbound and outbound tourism has gradually emerged. In the fourth quarter of 2022, outbound air ticket bookings on Ctrip platform increased by more than 200% year-on-year, while outbound hotel bookings increased by 140% year-on-year.

Financial results and business progress in the fourth quarter and the whole year of 2022: in the fourth quarter of 2022, Ctrip's domestic business was negatively affected by the novel coronavirus pandemic. At the same time, as countries around the world continue to open up and return to normal, Ctrip Group's international business maintained growth momentum in the fourth quarter.

In the fourth quarter of 2022, Ctrip Group's net revenue was 5 billion yuan ($729 million), up 7% from a year earlier. Ctrip's net revenue fell 27% in the fourth quarter of 2022 compared with the previous quarter, mainly due to the COVID-19 outbreak in some parts of China and seasonal factors in winter.

As of December 31, 2022, Ctrip's full-year net revenue was 20 billion yuan ($2.9 billion), unchanged from the previous fiscal year.

In the fourth quarter of 2022, Ctrip Group's operating income from accommodation booking was 1.7 billion yuan ($245 million), down 12 percent from the same period last year and 42 percent from the previous quarter. This is mainly due to the impact of the COVID-19 epidemic in some parts of China.

As of December 31, 2022, Ctrip Group's annual accommodation booking income was 7.4 billion yuan ($1.1 billion), down 9 per cent from the previous fiscal year. Accommodation booking revenue from Ctrip accounted for 37% of total revenue in 2022, compared with 41% in the previous fiscal year.

In the fourth quarter of 2022, Ctrip Group's ticketing revenue was 2.2 billion yuan ($320 million), an increase of 45% over the same period last year, mainly due to the strong recovery in the overseas market. Ctrip Group's ticketing revenue fell 16% in the fourth quarter compared with the previous quarter, mainly due to the outbreak of COVID-19 in some parts of China and seasonal factors in winter.

As of December 31, 2022, Ctrip Group's annual ticketing revenue was 8.3 billion yuan ($1.2 billion), an increase of 20 percent over the previous fiscal year. Ctrip's ticketing revenue accounted for 41% of its total revenue in 2022, compared with 34% in the previous fiscal year.

In the fourth quarter of 2022, the operating income of Ctrip Group's travel and vacation business was 164 million yuan ($24 million), down 7 percent from the same period last year and 58 percent from the previous quarter. This is mainly due to the impact of the COVID-19 epidemic in some parts of China.

As of December 31, 2022, Ctrip Group's annual operating income from its travel and vacation business was 797 million yuan ($116 million), down 28% from the previous fiscal year. Ctrip's travel and vacation business accounted for 4% of total revenue in 2022, compared with 6% in the previous fiscal year.

In the fourth quarter of 2022, the operating income of Ctrip Group's business travel management business was 277 million yuan ($40 million), down 25 percent compared with the same period last year and 25 percent compared with the previous quarter. This is mainly due to the impact of the COVID-19 epidemic in some parts of China.

As of December 31, 2022, Ctrip's annual business revenue from business travel management was 1.1 billion yuan ($157 million), down 20 per cent from the previous fiscal year. Ctrip Group's business travel management business accounted for 5% of total revenue in 2022, compared with 7% in the previous fiscal year.

In the fourth quarter of 2022, Ctrip's revenue cost was 1.2 billion yuan ($174 million), up 7 per cent from a year earlier and down 6 per cent from the previous quarter. Ctrip Group's revenue cost accounted for 24% of net revenue in the fourth quarter of 2022.

For the whole of 2022, Ctrip's revenue cost was 4.5 billion yuan ($654 million), roughly the same as the previous fiscal year, accounting for 23% of net revenue.

In the fourth quarter of 2022, Ctrip Group's product development expenses were 2.1 billion yuan ($305 million), down 6 percent from the same period last year and 16 percent from the previous quarter, mainly due to a decline in fees related to product developers. Product development expenses of Ctrip Group accounted for 42% of net operating income in the fourth quarter of 2022.

As of December 31, 2022, the annual product development cost of Ctrip Group was 8.3 billion yuan ($1.2 billion), down 7% from the previous fiscal year. The product development expenses of Ctrip Group accounted for 42% of the net operating income in 2022.

In the fourth quarter of 2022, Ctrip Group's sales and marketing expenses were 1.1 billion yuan ($166 million), down 12 percent from the same period last year and 20 percent from the previous quarter. This is mainly due to a decline in expenses related to sales and marketing promotions. Ctrip Group's sales and marketing expenses accounted for 23% of its net operating income in the fourth quarter of 2022.

As of December 31, 2022, Ctrip Group's annual sales and marketing expenses were 4.3 billion yuan ($616 million), down 14 percent from the previous fiscal year. Ctrip Group's annual sales and marketing expenses accounted for 21% of its net operating income in 2022.

In the fourth quarter of 2022, Ctrip's management fees were 816 million yuan ($118 million), an increase of 11% compared with the same period last year, mainly due to an increase in the provision for credit losses, but down 3% from the previous quarter. Ctrip Group carried management expenses accounted for 16% of net operating income in the fourth quarter of 2022.

As of December 31, 2022, the annual management fee of Ctrip Group was 2.8 billion yuan ($413 million), down 3 per cent from the previous fiscal year. The management expenses of Ctrip Group accounted for 14% of the net operating income in 2022.

Ctrip's income tax expenses were 246 million yuan ($36 million) in the fourth quarter of 2022, compared with 37 million yuan in the same period last year and 277 million yuan in the previous quarter. The changes in effective tax rates are mainly due to changes in the profitability of subsidiaries with different tax rates, non-taxable income resulting from changes in the fair value of investments in equity securities and exchangeable preferred notes, and changes in valuation provisions for deferred tax assets.

As of December 31, 2022, Ctrip's annual income tax expenses were 682 million yuan ($99 million), compared with 270 million yuan in the previous fiscal year.

Ctrip's net profit in the fourth quarter of 2022 was 2.1 billion yuan ($301 million), compared with a net loss of 883 million yuan a year earlier, compared with a net profit of 245 million yuan in the previous quarter. Ctrip's adjusted EBITDA (net profit before interest, tax, depreciation and amortization) was 286 million yuan ($41 million) in the fourth quarter of 2022, compared with 54 million yuan in the same period last year and 1.4 billion yuan in the previous quarter. Ctrip's adjusted EBITDA profit margin was 6% in the fourth quarter of 2022, compared with 1% in the same period last year and 21% in the previous quarter.

Ctrip's net profit in 2022 was 1.4 billion yuan ($201 million), compared with a net loss of 645 million yuan in the previous fiscal year.

The net profit attributed to Ctrip Group shareholders in the fourth quarter of 2022 was 2.1 billion yuan ($298 million), compared with a net loss of 834 million yuan in the same period last year. The net profit attributed to Ctrip Group shareholders in the previous quarter was 266 million yuan. Excluding equity incentive fees including other income / expenses, changes in the fair value of equity investments and exchangeable preferred notes and their tax implications (not in accordance with GAAP), the net profit attributable to shareholders of Ctrip Group in the fourth quarter was 498 million yuan ($71 million), compared with 309 million yuan for shareholders of Ctrip Group in the same period last year. Last quarter, the net profit belonging to the shareholders of Ctrip Group was 1 billion yuan.

As of December 31, 2022, the net profit attributable to Ctrip Group shareholders for the year was 1.4 billion yuan ($206 million), compared with a net loss of 550 million yuan in the previous fiscal year. Excluding equity incentive fees including other income / expenses and fair value changes in equity investments and exchangeable preferred notes (not in accordance with US GAAP), the net profit attributable to Ctrip Group shareholders in 2022 was 1.3 billion yuan ($189 million), compared with 1.4 billion yuan for Ctrip Group shareholders in the previous fiscal year.

In the fourth quarter of 2022, Ctrip earned 3.12 yuan ($0.45) per diluted American depositary receipt. Excluding equity incentive fees including other income / expenses and changes in the fair value of equity investments and exchangeable preferred notes and their tax impact (not in accordance with US GAAP), Ctrip Group's diluted earnings per depositary receipt in the fourth quarter of 2022 was 0.76 yuan (about $0.11). Each American depositary receipt of Ctrip Group currently represents one common share.

As of December 31, 2022, Ctrip's full-year earnings per diluted American depositary receipt were 2.14 yuan ($0.31). Excluding equity incentive fees including other income / expenses and fair value changes in equity investments and exchangeable preferred notes (not in accordance with GAAP), Ctrip's full-year diluted income per depositary receipt was 1.97 yuan (about $0.29). Each American depositary receipt of Ctrip Group currently represents one common share.

As of December 31, 2022, Ctrip Group held cash and cash equivalents, restricted cash, short-term investment balance, held to maturity deposits and wealth management investment balance of 59.6 billion yuan ($8.6 billion).

Share price changes: on the day, Ctrip shares fell $0.11, or 0.28%, to close at $38.61 in regular Nasdaq trading. Ctrip shares rose 73 cents, or 1.89 percent, to $39.34 in after-hours trading as of 05:21 EDT on the 6th (06:21 Beijing time on the 7th). In the past 52 weeks, Ctrip's highest price is $40.17 and the lowest price is $14.29.

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