Trip.com, China’s largest online travel platform, announced today that it lost 647 million yuan. And $100 million, in the second quarter from 2021, up from a loss of 476 million yuan in the same period in 2020. com’s first-quarter profit of 1.8 billion yuan.
Shares of Trip.com, which traded on the Nasdaq, Covid-19 Trip.com fell 3.6% after the announcement. Before the information, they had earned 5.7% year over year.
“The company’s overall results from the second quarter from2021 Covid-19 Trip.com were negatively impacted by the Covid-19 pandemic. And subsequent outbreaks caused by the new variant of Covid-19,” said Trip.com.
“However, taking advantage of the general limitations of the Covid-19 pandemic in China. The company’s domestic operations continued to show a strong recovery, which contributed significantly to total sales.
Net profit was 5.9 billion yuan, or $912 million, up to 86% year-on-year and 43% every quarter. The purchase value of the hotel and domestic flight tickets increases by around 150% every year. Compared to the same period before Covid 2019, both domestic hotel bookings. And airline ticket bookings grew by double digits in the second quarter, the company said.
The company said sales and marketing spending for the second quarter of 2021 during the same period increased 112% to $1.4 billion or $217 million in 2020 and 47% year-on-year, up 24% of net sales.
Its shareholders include Chinese online search leader Baidu, which owns about 11% of Trip.com. The company was co-founded by billionaire Neil Shen, currently the founder and managing partner of Sequoia China, and Ji Qi, CEO of American hotel group Huazhu Group.