Tuniu Reports Disappointing Revenue, Income; Shares Drop 15%
The stock of the Chinese travel company dropped 14 percent Thursday after Tuniu posted its first-quarter financial results.
Tuniu Corp. (Nasdaq: TOUR) reported revenue decline and increased losses for the first quarter, sending its stock on a slide of more than 14 percent Thursday, to $3.50 per American depositary share.
The online travel company, based in Nanjing, said its revenue was $68.1 million during the three months through March, down 5 percent from the same period last year. The majority of the revenue, 80 percent, came from packaged tours.
Revenue from Tuniu's financial services and fees from insurance agencies increased 17 percent year-over-year to $13.6 million, the company said. The cost of revenue during the same period dropped 6 percent to $30.7 million.
Net loss was $22.1 million, or 18 cents per share, compared with $10.4 million last year, the company said.
"In 2019, Tuniu will focus on maintaining and expanding its long-term competitive advantages. We have reprioritized our product offering to focus on the best-selling products in popular destinations," Tuniu's founder, chairman, and chief executive officer, Donald Dunde Yu, said in a statement today.
Looking forward, Tuniu's chief financial officer, Maria Yi Xin, said, "We will focus on improving the user experience by providing high quality products through Niu Tour, which are organized tours that are directly designed and procured by Tuniu, and Tuniu Selection, which are best-selling products from our top suppliers."
For the three months through June, Tuniu said it expects to generate revenue in the range of 472.7 million yuan to 499 million yuan, representing a year-over-year decrease of between 5 and 10 percent.