Tongcheng-Elong Holdings announced the unaudited consolidated results for the three months ended March 31, 2019, together with comparative figures for the same period of 2018.
Key Highlights
For three months ended March 31, 2019, on a combined basis:
• Revenue increased by 17.5% year-to-year to RMB1,783.4 million from RMB1,517.5 million in the same period of 2018.
• Adjusted EBITDA increased by 34.0% year-to-year to RMB615.6 million from RMB459.4 million in the same period of 2018.
• Adjusted EBITDA margin increased from 30.3% in the same period of 2018 to 34.5%.
• Adjusted profit for the period increased by 8.7% year-to-year to RMB448.5 million from RMB412.5 million in the same period of 2018. Adjusted net margin decreased from 27.2% in the same period of 2018 to 25.1%.
• Average MAUs increased by 22.0% year-to-year from 163.4 million in same period of 2018 to 199.3 million.
• Average MPUs increased by 36.7% year-to-year from 16.9 million in the same period of 2018 to 23.1 million.
• GMV achieved a year-to-year growth of 23.8% and reached RMB35.9 billion in for the first quarter of 2019.
Revenue increased by 161.4% from RMB682.4 million for the three months ended March 31, 2018 to RMB1,783.4 million for the three months ended March 31, 2019.
Revenue from accommodation reservation services increased by 8.8% from RMB449.6 million for the three months ended March 31, 2018 to RMB489.2 million for the three months ended March 31, 2019. The increase was mainly because of the increased room nights and revenue per room night.
Revenue from transportation ticketing services increased significantly from RMB208.2 million for the three months ended March 31, 2018 to RMB1,258.9 million for three months ended March 31, 2019, which was mainly due to our consolidation of the financial results of Tongcheng Online Business since March 2018.
Revenue from others increased by 43.4% from RMB24.6 million for the three months ended March 31, 2018 to RMB35.3 million for three months ended March 31, 2019, which was mainly due to the increase in revenue from advertising services.
Cost of revenue increased by 156.7% from RMB194.1 million for the three months ended March 31, 2018 to RMB498.3 million for the three months ended March 31, 2019.
Gross profit increased by 163.2% from RMB488.3 million for the three months ended March 31, 2018 to RMB1,285.1 million for the three months ended March 31, 2019. Gross margin increased from 71.6% in the three months ended March 31, 2018 to 72.1% in the three months ended March 31, 2019.
The company has established extensive long-term strategic partnerships and alliances with TSPs to offer users with one-stop-shop products and services throughout the journey. As of March 31, 2019, the online platforms offered over 6,923 domestic routes and over 1.2 million international routes operated by 789 domestic and international airlines and agencies, over 1.5 million hotels and alternative accommodation options, approximately 314,000 bus routes and over 447 ferry routes.
As of March 31, 2019, approximately 85.5% of the registered users reside in non-first-tier cities in China. For the three months ended March 31, 2019, the company has effectively penetrated in lower-tier cities and approximately 61.5% of new paying Weixin users were from tier-3 or below cities, which increased from 55.7% over the same period of 2018.
The company has enhanced user experience and stickiness by developing “Huixing”, “Buddha” and “Intelligent Hotel” systems. Recently, the company has reached another strategic cooperation with Tencent. With close cooperation with Weixin Payment, users with sufficient “Weixin Payment Point” could enjoy the benefit of “no deposit” when they place accommodation orders through our platform.
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