Trip.com Group, a Chinese travel service major, said its net revenue for the third financial quarter of the year has slumped by 2% year-on-year to US$831 million as Covid-19 re-emerges in certain regions in China.
Trip.com logged net losses attributable to shareholders at US$131 million, from a net income of US$251.3 million in the same quarter last year. Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for Q3 2021 deflated by around 66.6% to US$84 million.
James Liang, chairman of Trip.com Group, delivering a speech at Trip.com Group’s Hong Kong Stock Exchange listing ceremony / Photo credit: Trip.com
While the company’s accommodations reservation business still stood as its main revenue driver, its results for the quarter saw a decline of 11% to US$341 million from the same period a year ago.
Meanwhile, the company’s transportation ticketing business decreased by 5% in Q3 2021 to stand at US$282 million in revenue. However, the packaged tours segment saw a 20% rise in revenue during the quarter to earn US$61 million. Its corporate travel segment also grew by 20%, bringing in US$53 million for the quarter.
At the same time, Trip.com’s cost of revenue for Q3 2021 hiked by 19% to US$190 million in comparison to the same period last year. The company attributed this mainly to an increase in compensation to customer service personnel.
Editing by Collin Furtado and Lorenzo Kyle Subido
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