Trip.com Q1 Net Profit Drops 42%; Q2 Revenue Growth May Hit Three-Year Low
Alina Collins
Trip.com's Q1 net profit plunged 42% year-on-year to RMB 2.5 billion, while its Q2 revenue growth guidance of just 3%–8% marks the weakest quarter since late 2022 — compounded by an unresolved antitrust probe that could bring significant fines.
Why did profit fall so sharply?
Q1 revenue came in at RMB 16.2 billion, up 17% year-on-year — a decent top line.
But net profit was only RMB 2.5 billion, down roughly 42% — the lowest since late 2024.
This means → revenue grew while profit shrank, pointing to a cost or expense problem — the company earned more but spent even faster.
What is dragging Q2 growth down?
Management guided Q2 revenue growth at just 3% to 8%, the weakest quarterly outlook since late 2022.
CFO Cindy Wang pointed to two drivers: rising energy prices pushing up airfares, and geopolitical tensions disrupting some long-haul international routes.
In plain terms = fuel costs climbed → tickets got pricier → some routes were cut altogether → travelers either stayed home or switched to shorter trips, leaving Trip.com with less to sell.
What does the antitrust probe mean?
China's State Administration for Market Regulation launched an antitrust investigation into Trip.com in January this year.
The company used unusually blunt language in its filing: the probe "may directly result in significant fines, other financial penalties, or changes to business practices" and could have a "material adverse effect" on its financial condition.
Trip.com said it cannot predict the timeline, outcome, or potential loss amount.
What should investors watch now?
Two factors are capping Trip.com's valuation right now: the low end of Q2 guidance (just 3%) and the unknown size of a potential antitrust fine.
This means → the stock is likely range-bound until one of these resolves — either earnings beat expectations or the regulatory shoe drops.
Key signposts ahead: progress on the antitrust investigation and whether actual Q2 revenue lands near the top or bottom of the guidance range.
Content is for reference only, not financial advice.