TONGCHENGTRAVEL's Q2 revenue growth slows to 10%, profit margin rises to a new high | Financial Report Insights
TONGCHENGTRAVEL Q2 revenue reached 4.669 billion yuan, a year-on-year increase of 10.0%, significantly slowing down from the 48.1% growth rate in the same period last year, with profit margins rising to a new high. The accommodation booking business showed relative resilience in the first half of the year, with revenue increasing by 15.2% year-on-year. Due to safety concerns, revenue from outbound travel groups to Southeast Asia declined
TONGCHENGTRAVEL's Q2 revenue reached 4.669 billion yuan, a year-on-year increase of 10.0%, significantly slowing from 48.1% in the same period last year, with profit margins rising to a new high. The accommodation booking business showed relative resilience in the first half of the year, with revenue growing by 15.2% year-on-year. Due to safety concerns, revenue from outbound travel groups to Southeast Asia declined.
On August 18, TONGCHENGTRAVEL announced its performance report for the second quarter and the first half of 2025:
- Q2 revenue of 4.669 billion yuan, a year-on-year increase of 10.0%, with growth slowing significantly from 48.1% in the same period last year
- Adjusted EBITDA margin increased to 25.4% (21.5% in the same period last year), and adjusted net profit margin rose to 16.6% (15.5% in the same period last year)
- By the end of Q2, TONGCHENGTRAVEL's cumulative annual service users reached 1.99 billion, a year-on-year increase of 7.2%; the number of annual paying users reached a new high of 252 million.
As of the first half of 2025, TONGCHENGTRAVEL achieved revenue of 9.05 billion yuan, a year-on-year increase of 11.5%; adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was 2.34 billion yuan, a year-on-year increase of 35.2%; adjusted net profit was 1.56 billion yuan.
Core business progress in the first half of the year:
- Accommodation booking business revenue was 1.371 billion yuan, a year-on-year increase of 15.2%, showing relatively strong performance
- Transportation ticketing business revenue was 1.881 billion yuan, a year-on-year increase of 7.9%, with growth slowing down
- Vacation business revenue was 662 million yuan, a year-on-year decrease of 8.0%, affected by ongoing safety issues in Southeast Asia
Travel services show steady growth, adjusted profits reach new highs
TONGCHENGTRAVEL's Q2 revenue growth slowed from 48.1% in the same period last year to 10.0%. By business segment, the accommodation booking business showed relative resilience, with revenue growing by 15.2% year-on-year to 1.371 billion yuan. The company attributed this to "steady growth in business volume and improved monetization capabilities."
The slowdown in the growth of the transportation ticketing business is more pronounced, dropping from last year's rapid growth to 7.9%. Although the company emphasized that international ticket sales reached a historic high, with a year-on-year increase of nearly 30%, this is more a reflection of a low base effect. The vacation business continues to decline, with revenue decreasing by 8.0% year-on-year to 662 million yuan, which the company attributed to "the ongoing impact of safety issues in Southeast Asia."
Despite the slowdown in growth, TONGCHENGTRAVEL's performance in terms of profit margins is impressive. The adjusted EBITDA margin increased from 21.5% to 25.4%, and the adjusted net profit margin rose from 15.5% to 16.6%. This improvement is mainly due to enhanced operational efficiency and cost control.
It is worth noting that the company's cash flow from operating activities performed strongly, reaching 3.035 billion yuan in the first half of the year, demonstrating the business's cash-generating ability. However, cash outflow from investing activities was 3.56 billion yuan, mainly used for financial products and time deposits.
AI empowers the travel platform, strengthening the supply chain and user experience
The company launched the AI itinerary planning agent DeepTrip, integrating platform supply chain capabilities and DeepSeek's reasoning abilities, and has been deployed in multiple business scenarios, such as optimizing custom travel service processes, pushing user marketing activities, and intelligently matching itinerary resources, significantly reducing search time and improving booking efficiency.
By exploring emerging accommodation scenarios such as weekend getaways, concerts, and sports events, it has driven the average daily room nights to a historical high. At the same time, it focuses on high-value users, strengthens penetration in lower-tier cities, and enhances market share and monetization capabilities.
The group's hotel management business platform operates over 2,700 hotels, with another 1,500 in preparation, indicating that the company's light asset expansion strategy in the hotel management sector continues to advance. A dedicated hotline and customer service team have been established to improve response speed and problem-solving efficiency, while enhancing user stickiness through membership benefits.
Despite a decline in outbound travel group revenue due to safety concerns, the company remains confident in the growth potential of the outbound travel market. It has reached strategic cooperation with Shandong Airport Management Group and Xi'an Xianyang International Airport to leverage technological advantages to optimize route layouts, improve operational efficiency, and expand cooperation space in intermodal product development and membership benefit integration
