Tongcheng Travel Holdings Ltd (FRA:TEM) Q2 2024 Earnings Call Highlights: Strong Revenue Growth ...

GuruFocus News
4 min read

In This Article:

  • Net Revenue: RMB4.2 billion, a 48% increase year-over-year.

  • Adjusted Net Profit: RMB657 million, with a margin of 15.5%.

  • Core OTA Business Revenue: RMB3.5 billion, a 23% year-over-year growth.

  • Transportation Ticketing Revenue: RMB1.7 billion, a 17% increase year-over-year.

  • Accommodation Reservation Revenue: RMB1.2 billion, a 13% increase year-over-year.

  • Other Business Revenue: RMB592 million, an 87% growth year-over-year.

  • Tourism Business Revenue: RMB720 million.

  • Gross Profit: RMB2.7 billion, with a gross margin of 64.6%.

  • Adjusted EBITDA: RMB913 million, with a margin of 21.5%.

  • Cash and Cash Equivalents: RMB10 billion as of June 30, 2024.

  • Total Room Nights Sold: 10% year-over-year growth.

  • International Air Ticketing Volume Growth: Over 150% year-over-year.

  • International Room Nights Sold Growth: Around 140% year-over-year.

  • Hotel Stores in Operation: Increased to around 1,900.

  • Travel Agent Stores: More than 800 by the end of the quarter.

  • 12-Month Rolling Paying Users: Increased by 5% to RMB228 million.

  • Average Purchase Frequency: 8.1 times per user.

  • 12-Month ARPU: Nearly RMB64, a 31% increase from 2019.

  • Black Whale Members: Almost 65 million, more than double year-over-year.

Release Date: August 20, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tongcheng Travel Holdings Ltd (FRA:TEM) reported a net revenue of RMB4.2 billion for Q2 2024, representing a 48% increase from the same period in 2023.

  • The company's air ticketing business achieved nearly 20% year-over-year growth, outperforming the industry average.

  • International air ticketing volume grew by more than 150% year-over-year, indicating strong international expansion.

  • The company's standalone app saw significant growth, with daily active users hitting historical highs during the Mayday holiday.

  • Tongcheng Travel Holdings Ltd (FRA:TEM) achieved a solid adjusted net profit of RMB657 million, with an improved net profit margin of 15.5%.

Negative Points

  • The company faced challenges due to adverse weather conditions, such as extreme heat and rainstorms, affecting travel demand.

  • There is concern about potential slowdown in travel demand in the third quarter due to a high base from the previous year.

  • The GMV growth slowed down in Q2, lagging behind the revenue growth for the core OTA business.

  • Despite strong international growth, the international business still accounts for less than 5% of core OTA revenue.

  • The company is investing heavily in international expansion, which may impact margins in the short term.

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