Trip.com Group saw its Hong Kong-listed shares slide sharply after releasing first-quarter results that showed a marked fall in profit and a materially softer outlook for the current quarter. By 03:44 GMT on Thursday the stock had declined 10.6% to HK$31.60, marking its lowest trading level since August 2024.
Quarterly results and operating trends
For the January-March quarter, net income attributable to shareholders dropped to 2.5 billion yuan, down from 4.3 billion yuan in the same period a year earlier. The company reported revenue of 16.2 billion yuan, a 17% increase year-on-year that the company attributed to resilient travel demand and strong performance from its overseas business.
Trip.com highlighted continued strength in bookings on its international platform, with gross bookings rising roughly 65% year-on-year. Inbound travel bookings exhibited even larger gains, increasing about 90% compared with the prior-year quarter.
Guidance and near-term headwinds
Investors homed in on the company’s forward guidance. Trip.com said it now expects revenue growth in the second quarter to decelerate to a range of 3% to 8% from a year earlier. Management cited a cluster of challenges as the basis for the slowdown - macroeconomic headwinds, elevated energy prices, geopolitical volatility and operational adjustments - and warned that the milder top-line trajectory would weigh on margins and the bottom line.
Regulatory disclosure
The earnings release also disclosed an ongoing investigation by China’s State Administration for Market Regulation into possible monopolistic conduct. Trip.com said it is cooperating with the regulator, while cautioning that the probe could lead to substantial fines or compel changes to the company’s business practices.
Market reaction
The combination of a sharp year-on-year fall in net income, a softened revenue outlook, and the regulatory inquiry corresponded with the stock’s heavy session. Despite year-on-year revenue growth and robust international booking gains, the company signaled a period of more modest growth ahead that is expected to compress profitability.
This report contains only the information disclosed by the company in its results and guidance. Where details were limited in the announcement, the company’s statements are reflected without additional inference.