(Yicai Global) Dec. 2 -- Chinese online travel agency Trip.Com Group logged its first quarterly profit during the Covid-19-hit year by cutting costs and raising its profit margin.

The platform provider made CNY1.6 billion (USD243.9 million) in net profit in the quarter ended September, more than doubling from a year ago, the Shanghai-headquartered firm said in its earnings report released yesterday.

Even though the domestic market is recovering, international travel is not what it used to be. The flight and hotel booker predicted that its revenue will fall as much as 42 percent in the fourth quarter due to the lingering effect of the Covid-19 pandemic.

Although the international market remains the firm's growth driver, Trip.Com will focus on the domestic market in the short-term to seize opportunities amid recovery while closely watching overseas markets to swiftly adjust to changes, said Chairman James Jianzhang Liang.

In the third quarter, Trip.Com's revenue dropped 48 percent to CNY5.5 billion (USD838.8 million), the report added. Hotel bookings made up 45 percent of that at CNY2.5 billion, falling 40 percent. Flight orders brought in CNY1.9 billion, sliding 49 percent.

But the domestic travel market is showing clear signs of recovery. Based on a month-to-month comparison, transportation and accommodation revenues are rebounding.

The company has been cutting costs. Product development expenditures decreased by 28 percent to CNY2 billion in the quarter from a year earlier. Sales and marketing spend was pared by 54 percent. Management fees were slashed by 38 percent.

Prices were raised, as the firm's gross profit margin would suggest. The gauge that compares revenue to costs rose to 81 percent from 79 percent in the quarter a year ago. It had been as low as 72 percent in the second quarter.

Trip.Com's stock price [NASDAQ:TCOM] edged up 2.4 percent to USD34.41 in New York yesterday.

Editor: Emmi Laine