Trip.com Group Limited Q2 FY2025 earnings call

• Travel market showed strong resilience in Q2 2025, with inbound travel in China up over 100% YOY driven by Korea and Southeast Asia. China's inbound travel accounts for less than 0.5% of GDP, with room for growth.
• AI is central to strategy; Trip.Planner upgraded for personalized trip planning using large language models and data from various feeds.
• Inbound travel initiatives: Beijing Capital International Airport service center launched, half-day Beijing tour served ~5,000 visitors. Global business saw international bookings up over 60% YOY, with APAC region contributing strongly.
• Domestic initiatives: [Intelli-Trip] launched to help hotels capture inbound demand; silver generation and young travelers segments growing; sustainability efforts: over 100 million travelers chose eco-conscious options, 3,000 partner hotels in low-carbon standard, 92% flights show carbon data.
• Rural revitalization: 34 country retreats opened, creating 40,000 jobs.

Trip.com Group reported net revenue of RMB 14.8 billion for Q2 2025, a 16% year-over-year increase. Accommodation reservation revenue was RMB 6.2 billion, up 21% YOY and 12% QOQ. Transportation ticketing revenue was RMB 5.4 billion, up 11% YOY and flat QOQ. Packaged tour revenue was RMB 1.1 billion, up 5% YOY and 14% QOQ. Corporate travel revenue was RMB 692 million, up 9% YOY and 21% QOQ. Adjusted EBITDA was RMB 4.9 billion, up 10% YOY. Diluted earnings per ordinary share and per ADS were RMB 6.97 or USD 0.97, with non-GAAP figures at RMB 7.20 or USD 1.01.

• Announced a new USD 5 billion share repurchase program.
• Focus on cost discipline and operational efficiency to drive sustainable growth and long-term value.

Q: AI and content strategy, how will it work in next couple of years and details on Trip.Planner upgrade?

A: Jianzhang Liang said AI and content create synergies; user side gets personalized recommendations, back end improves data processing. Trip.Planner upgrade allows trip planning from ideas, uses large language models and data from Trip.Best, etc., for personalized suggestions.

Q: Observations on summer booking trends and cross-border travel trends?

A: Jie Sun said domestic travel volume strong but ADR down; outbound flight recovery to 80%-90% pre-COVID, platform over 120% pre-COVID; foreign to foreign growth over 60% YOY; inbound to China up over 100% YOY.

Q: Impact of Umetrip's new feature supporting direct airline sales?

A: Jie Sun said focus on best products and services, SOS program and 24x7 service gives confidence to consumers, confident in G2 strategy of great services and globalization.

Q: Competition landscape and impact?

A: Jie Sun said focus on strengths and customer needs, not pure price competition, will focus on excellent services and comprehensive products to maintain leadership.

Q: Old Friends Club and travel plus entertainment market size and growth?

A: Jie Sun said Old Friends Club market could grow to over $1 trillion in 3-5 years; travel plus entertainment demand strong with events like Taylor Swift shows, etc., robust business.

Q: Inbound travel potential insights?

A: Jie Sun said China's inbound travel accounts for <0.3% of GDP, potential as infrastructure, history, etc., are strong, inviting 3,000 global partners saw positive feedback.

Q: International expansion marketing progress and plans?

A: Jie Sun said Q2 growth due to effective marketing, mobile app 70% of global orders; will continue signature campaigns, disciplined spending for long-term goals.

Q: Impact of global players' aggressive marketing on Trip.com?

A: Jie Sun said APAC market has potential, Trip.com leverages one-stop offerings, comprehensive inventory, mobile-first, and customer service to maintain growth, focuses on targeted marketing.

Q: Shareholder return, buyback process and new program?

A: Jie Sun said repurchased ~7 million ADRs, fully utilized authorized quota; new USD 5 billion program to mitigate dilution and reduce share count, strategic share purchases.