Qunar turns down Ctrip acquisition offer as losses widen in Q1
Qunar's total revenues for the Q1 were RMB671.1million up 100% y-o-y but adjusted net loss was RMB293.4 million, compared to RMB55.7 million in Q1 2014.
BEIJING, June 1, 2015 -- Qunar Cayman Islands Limited, China's leading mobile and online travel platform, today announced its unaudited financial results for the first quarter ended March 31, 2015.
Highlights for the First Quarter of 2015
Total revenues for the first quarter of 2015 were RMB671.1million (US$108.3 million), an increase of 100.0% year-on-year.
Mobile revenues for the first quarter of 2015 were RMB398.5 million (US$64.3 million), an increase of 275.7% year-on-year, representing 59.4% of total revenues, compared to 31.6% in the corresponding period of 2014.
"Qunar's momentum for revenue growth and market share expansion across business lines remained robust in Q1 2015 as our quarterly GMV expanded to over RMB30 billion for the first time," said Chenchao (CC) Zhuang, chief executive officer and co-founder of Qunar.
"We are one of the largest e-commerce companies in China and among the fastest growing, and this is the fourth consecutive quarter that our year-on-year revenue grew 100% or above," Mr. Zhuang added. "Once again, mobile continued to be the key driver and now contributed 59.4% of our total revenues, thanks to our large and loyal mobile user base."
"We will continue to capitalize the offline to mobile tailwind in the travel industry and to drive Qunar's long-term growth with an aggressive and deliberate investment approach," said Yilu Zhao, Chief Financial Officer of Qunar.
Looking forward to the second quarter, Qunar expects year-on-year revenue growth of 105% to 110%.
However, Qunar also reported a net loss for the first quarter of RMB701.2 million or RMB5.85 per ADS, compared to RMB183.6 million or RMB1.62 per ADS for the year-ago quarter.
Excluding items, adjusted net loss for the first quarter was RMB293.4 million, compared to adjusted net loss of RMB55.7 million in the prior year quarter.
Separately, Qunar said that Silver Lake has led a strategic investment round totaling $500 million in the company in the form of 2% Senior Unsecured Convertible Notes with an initial conversion price of $55 per ADS. Silver Lake has made a $330 million investment, while another investor contributed $170 million. Qunar will use the capital to continue to expand its mobile presence, grow business lines and further enhance technology capabilities.
Qunar also reported it received an unsolicited offer from Ctrip.com International Ltd., or Ctrip, to acquire all of our outstanding shares on May 8, 2015. "After careful consideration of such offer, we declined to pursue it in a letter response dated June 1, 2015 ... we remain open to engaging in further discussions with Ctrip as well as with other strategic players in our sector."
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