H World Group Swings To Q2 Profit; Raises FY23 Guidance

(RTTNews) - H World Group Limited (HTHT), a Chinese hotel chain, on Thursday reported earnings in the second quarter compared to a loss in the prior year quarter, on higher revenues. The company also lifted its full-year revenue guidance and issued third quarter outlook.

The company reported quarterly net earnings of RMB 1.0 billion or $138 million compared with a net loss of RMB 350 million or a loss of $52 million last year.

Earnings per ADS were RMB 3.11 or $0.43 compared with a loss of RMB 1.13 per ADS or $0.17 loss per ADS prior year.

Revenues increased 63.5 percent to RMB 5.5 billion or $762 million from RMB 3.4 billion or $504 million last year, especially on higher revenues from Legacy-Huazhu segment representing a 76.6 percent year-over-year increase.

On average, four analysts polled by Thomson Reuters expected the company to report revenues of $737.15 million for the quarter. Analysts' estimates typically exclude one-time items.

Looking ahead to the next quarter, the company expects its revenue to grow in the range of 43 percent-47 percent compared to the third quarter of 2022, or in the range of 49 percent-53 percent excluding DH.

Looking forward to the full year, the company is now expecting revenue growth to be in the range of 48 percent-52 percent compared to the full year of 2022, and up from their previous outlook of 42 percent-46 percent, or in the range of 54 percent-58 percent excluding DH compared to the previous guidance of 46 percent-50 percent excluding DH.

In pre-market activity, shares of H World Group are trading at $45.97, up 2.34% on Nasdaq.