Trip.com Posts Q2 Loss After Anti-Monopoly Fine

China's largest online travel platform Trip.com reported losses in the second quarter due to anti-monopoly fines.

Trip.com, listed on Nasdaq and Hong Kong, reported a 2.5 billion yuan (US$363 million) second-quarter loss attributable to shareholders, with the 5.2 billion yuan Chinese anti-monopoly regulator fine being a big take.

The loss compared to a profit of 4.8 billion yuan a year ago. Without the fine, net income was 2.7 billion yuan. Total revenue increased 6 percent to 15.7 billion yuan due to "resilient travel demand," but fell 3 percent from the first quarter.

China's State Administration for Marketing Regulation fined the company in early July for abusing its market dominance in the domestic online hotel-booking market by using platform rules to strike exclusive deals with some hotels as it sought to offer the ⁠lowest prices.

"Travel remains a fundamental consumer need, and we see significant long-term opportunities as travelers seek more personalized and rewarding experiences. Our strategic priorities remain clear: globalization and great quality, or G2," said the company's executive chairman James Liang.

"Building on this foundation, we are advancing our proprietary AI capabilities across every stage of the travel journey to accelerate G2 and unlock new opportunities for growth. We are building a more differentiated and valuable global platform for travelers and partners, positioning us for the next phase of sustainable growth," Liang said.

In the second quarter, accommodation reservation revenue rose 6 percent, revenue from ticketing services edged up 1 percent, packaged tour sales gained 8 percent, and corporate travel rose 11 percent. Sales and marketing expenses increased by 15 percent to 3.8 billion yuan.

For the first half, revenue rose 11 percent to 31.8 billion yuan, with net income dropping to 41 million yuan from 9.1 billion yuan a year earlier.