Tongcheng-Elong reports 33.3% GMV rise in H1 2019
08/19/2019|7:35:06 PM|Tongcheng-Elong

Tongcheng-Elong Holdings today announces the unaudited consolidated results of the Group for the three and six months ended June 30, 2019, together with comparative figures for the same period of 2018.

Key Highlights

For Three Months Ended June 30, 2019: 

• Revenue increased by 21.0% year-to-year to RMB1,590.9 million from RMB1,314.5 million in the same period of 2018. 

• Adjusted EBITDA increased by 40.9% year-to-year to RMB440.5 million from RMB312.7 million in the same period of 2018. Adjusted EBITDA margin increased from 23.8% in the same period of 2018 to 27.7%. 

• Adjusted profit for the period increased by 60.0% year-to-year to RMB345.6 million from RMB216.0 million in the same period of 2018. Adjusted net margin increased from 16.4% in the same period of 2018 to 21.7%. 

• Average MAUs increased by 15.4% year-to-year from 157.4 million in same period of 2018 to 181.6 million. 

• Average MPUs increased by 53.9% year-to-year from 18.0 million in the same period of 2018 to 27.7 million.

For Six Months Ended June 30, 2019: 

On a Group’s standalone basis 

• Revenue increased by 69.0% year-to-year to RMB3,374.3 million from RMB1,996.8 million in the same period of 2018. 

• Adjusted EBITDA increased by 138.6% year-to-year to RMB1,056.1 million from RMB442.6 million in the same period of 2018. Adjusted EBITDA margin increased from 22.2% in the same period of 2018 to 31.3%. 

• Adjusted profit for the period increased by 96.6% year-to-year to RMB794.0 million from RMB403.8 million in the same period of 2018. Adjusted net margin increased from 20.2% in the same period of 2018 to 23.5%. 

On a combined basis 

• Revenue increased by 19.1% year-to-year to RMB3,374.3 million from RMB2,832.0 million in the same period of 2018. 

• Adjusted EBITDA increased by 36.8% year-to-year to RMB1,056.1 million from RMB772.2 million in the same period of 2018. Adjusted EBITDA margin increased from 27.3% in the same period of 2018 to 31.3%. 

• Adjusted profit for the period increased by 26.3% year-to-year to RMB794.0 million from RMB628.5 million in the same period of 2018. Adjusted net margin increased from 22.2% in the same period of 2018 to 23.5%. 

• Average MAUs increased by 18.8% year-to-year from 160.4 million in the same period of 2018 to 190.5 million. 

• Average MPUs increased by 45.1% year-to-year from 17.5 million in the same period of 2018 to 25.4 million.

The GMV for the three and six months ended June 30, 2019, on a combined basis, achieved a year-to-year growth of 42.9% and 33.3%, and reached RMB41.3 billion and RMB77.2 billion, respectively.

Revenue from accommodation reservation services increased by 25.5% from RMB441.0 million for the three months ended June 30, 2018 to RMB553.4 million for the three months ended June 30, 2019. The increase was mainly because of the increased room nights and revenue per room night.

Revenue from transportation ticketing services increased by 13.0% from RMB829.5 million for the three months ended June 30, 2018 to RMB937.1 million for three months ended June 30, 2019.

Other revenue increased by 128.2% from RMB44.0 million for the three months ended June 30, 2018 to RMB100.4 million for three months ended June 30, 2019.

Cost of revenue increased by 51.4% from RMB370.5 million for the three months ended June 30, 2018 to RMB561.2 million for the three months ended June 30, 2019. 

Service development expenses increased 10.9% from RMB317.5 million for the three months ended June 30, 2018 to RMB352.2 million for the three months ended June 30, 2019.

Selling and marketing expenses decreased by 12.3% from RMB464.1 million for the three months ended June 30, 2018 to RMB407.2 million for the three months ended June 30, 2019.

Administrative expenses decreased significantly from RMB133.7 million for the three months ended June 30, 2018 to RMB99.8 million for the three months ended June 30, 2019, which was mainly due to accrued professional fees in the second quarter of 2018 related to the public offering.

Other income increased by 84.5% from RMB7.4 million for the three months ended June 30, 2018 to RMB13.7 million for the three months ended June 30, 2019. The increase primarily reflected the increase in government subsidiaries received.

As of June 30, 2019, our registered users residing in non-first-tier cities in China accounted for approximately 85.5% of total registered users. For the second quarter of 2019, approximately 61.5% of new paying Weixin users were from tier-3 or below cities, which increased from 55.8% over the same period of 2018.

Tongcheng-Elong Holdings has established long-term and close relationships with various TSPs to offer users with one-stop-shop products and services throughout the journey. 

As of June 30, 2019, the online platforms offered over 7,000 domestic routes and over 1.2 million international routes operated by 751 domestic and international airlines and agencies, over 1.5 million hotels and alternative accommodation options, approximately 324,000 bus routes and over 492 ferry routes. 

Tongcheng-Elong Holdings acquired Suzhou Tongcheng Cultural Tourism Development Co., Ltd. with attraction ticketing as its main business on April 30, 2019, which offers ticketing services of approximately 9,000 domestic tourist attractions on our platform. 

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