Meituan Dianping, a local and travel service platform backed by Tencent, announced its second-quarter results for 2020 with a 8.9% rise in revenue.
Operating profit for the quarter increased 95.5% while profit climbed 152.4%. But revenue for the first six months this year declined 1%.
Revenue for the in-store, hotel & travel business unit dropped 13.4% to RMB 4.5 billion (USD 650 million) for the quarter and decline 21.6% for the half year. The unit also recorded a 31.2% drop in half-year operating profit.
Meituan said its hotel business continued to be significantly affected by the pandemic, with the number of domestic room nights consumed in the second quarter decreasing by 17% year-over-year to 78 million.
In light of the increasing demand for intra-city and short-distance local travel, the company also launched the “Safe Travel” program to help expedite the recovery of the industry.
The pace of development for high-star hotel partnerships also picked up, and Meituan said it established a significant increase in relationships with these types of hotels in the second quarter of 2020 by increasing their non-lodging revenues through our “hotel + x” program. As a result, the contribution from high-end hotels further increased year-over-year.
