Tuniu Corporation, a leading online leisure travel company in China, today announced its unaudited financial results for the second quarter ended June 30, 2018.
Highlights
Revenues from package tours in the second quarter of 2018 increased by 29.0% year-over-year to RMB437.6 million (US$66.1 million2).
Operating expenses in the second quarter of 2018 decreased by 29.7% year-over-year to RMB371.9 million (US$56.2 million).
Non-GAAP net loss was RMB22.6 million (US$3.4 million) in the second quarter of 2018, compared to a Non-GAAP net loss of RMB212.6 million in the second quarter of 2017.
As of August 28, 2018, Tuniu had 308 offline retail stores in total.
As of July 31, 2018, Tuniu had 25 local tour operators in total, including 3 newly launched local tour operators in China and 1 newly launched local tour operator overseas3 since April 30, 2018.
Second Quarter 2018 Results
Net revenues were RMB525.3 million (US$79.4 million) in the second quarter of 2018, representing a year-over-year increase of 14.2% from the corresponding period in 2017.
Revenues from packaged tours were RMB437.6 million (US$66.1 million) in the second quarter of 2018, representing a year-over-year increase of 29.0% from the corresponding period in 2017. The increase was primarily due to the growth of organized tours.
Other revenues were RMB87.6 million (US$13.2 million) in the second quarter of 2018, representing a year-over-year decrease of 27.4% from the corresponding period in 2017. The decrease was primarily due to the decline in revenues generated from financial services and service fees received from insurance companies.
Cost of revenues was RMB274.5 million (US$41.5 million) in the second quarter of 2018, representing a year-over-year increase of 25.0% from the corresponding period in 2017. As a percentage of net revenues, cost of revenues was 52.3% in the second quarter of 2018 compared to 47.7% in the corresponding period in 2017.
Gross profit was RMB250.8 million (US$37.9 million) in the second quarter of 2018, representing a year-over-year increase of 4.2% from the corresponding period in 2017. The increase was primarily due to the increase in efficiency resulting from economies of scale.
Operating expenses were RMB371.9 million (US$56.2 million) in the second quarter of 2018, representing a year-over-year decrease of 29.7% from the corresponding period in 2017. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB60.0 million (US$9.1 million) in the second quarter of 2018. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB312.0 million (US$47.1 million) in the second quarter of 2018, representing a year-over-year decrease of 33.8%.
Net loss was RMB82.8 million (US$12.5 million) in the second quarter of 2018, compared to a net loss of RMB270.8 million in the second quarter of 2017. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB22.6 million (US$3.4 million) in the second quarter of 2018.
As of June 30, 2018, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.9 billion (US$288.2 million).
Business Outlook
For the third quarter of 2018, Tuniu expects to generate RMB725.5 million to RMB765.8 million of net revenues, which represents 5% to 10% decrease year-over-year. This forecast reflects Tuniu´s current and preliminary view on the industry and its operations, which is subject to change.
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