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Tuniu Says Revenue From Packaged Tours Falls, Losses Widen

Anthony Russo 2019-08-29 09:00 AM

Tuniu Corp. (Nasdaq: TOUR) announced its revenue from packaged tours plummeted, while net loss nearly doubled in the second quarter.

The Nanjing-based online leisure travel company sells packaged tours, such as self-guided and organized tours, as well as related services for leisure travelers. It offers tour guides and services that cover over 140 countries and regions across the world.

In a statement today, Tuniu said its revenue in three months through June was $75.8 million, down 1 percent year-over-year. Net loss was $24.3 million or 21 cents per American depositary share, compared with $12.5 million or 9 cents per ADS.

The stock in Tuniu ended the day 1 cent higher, at $3.38 per share, after dipping as low as 8 percent in early trading.

Tuniu attributed its revenue drop to diminished sales of packaged tours, which was 62.6 million, down 2 percent from the corresponding period a year ago. There was a decline in demand for travel to certain destinations, according to the company. 

Maria Yi Xin, the chief financial officer of Tuniu, further spoke about the decline in travel and explained the gross booking breakdown in specific areas.

“In terms of the destinations, we continue to be affected by the one area, the external events such as tax and internal trade tensions,” Xin said in a conference call on Wednesday.

She added. “In terms of the gross booking breakdown for this quarter, the packaged tours contributed to Tuniu about 30% and the Europe contributed us 20%. Japan and South Korea together 10%, Southeast Asia 10% and islands, both the Maldives together 10% and Americas about 5%.”

On a positive note, the company said commission fees from certain travel-related products helped offset the decline. Other revenues reached $13.2 million in the second quarter, up 4 percent year-over-year.

Dunde Yu, the founder, chairman and chief executive officer of the company, noted Tuniu's plans moving forward regarding branded product themes.

“Going forward, we will also offer more Tuniu-branded products for themes such as family tours, youth tours, education tours, honeymoon and even travel photography,” Yu said in a conference call on Wednesday. 

Tuniu said it anticipates to generate revenue in the range of between $109 million and $114.4 million, which represents a 0 percent to 5 percent increase year-over-year.