Hong Kong-listed Tongcheng Travel, a major Chinese online travel company backed by both Tencent and Trip.com Group, reported that its revenue grew more than 60% year-on-year to RMB 2,048 millioin (USD 288 million) for the third quarter this year. Net profit was RMB 515 million (USD 72 million).
The company said the travel market continued to thrive with increased activity and consumption, as diverse demands were further unleashed during the summer season.
Average monthly paying users (MPUs) increased 20% to 44.2 million in the quarter, while annual paying users (APUs) rose 12% to nearly 225 million.
For the third quarter of 2023, around 80% of Tongcheng's average MAUs were contributed by Tencent's Weixin mini-program. The company is also exploring various online and offline traffic channels to diversify customer sources.
Tongcheng said it capitalized on the opportunities in China's lower-tier cities market and increased its market share there, mainly owing to the strategic concentration on lower-tier cities and effective offline user acquisition.