The stock in Tuniu Corp. (Nasdaq: TOUR) inched lower on Friday after the company said its revenue nearly halved in the second quarter.
The Nanjing-based online leisure travel company said in a statement today that its revenue in the second quarter declined 94% year-over-year to $4.8 million. Its net loss hit $21.9 million, or 6 cents per share, in the three months through June.
Tuniu attributed its revenue drop to the adverse impact on travel due to the outbreak of Covid-19.
Still, the company had $225.2 million cash and cash equivalents in the book to weather the storm of the epidemic-related industry slowdown. The Covid-19 pandemic has negatively impacted its business operation and cash flows for the second quarter of 2020, which could continue to impact on subsequent periods, Tuniu added.
"After nearly six months of downturn caused by the COVID-19 outbreak, we are encouraged to see that China's domestic travel market is finally showing signs of recovery. We will continue to uphold our 'Customer First' principle in order to provide the best possible products and services to satisfy pent-up customer demand," Dunde Yu, the chief executive officer of Tuniu, said in the statement.
Founded in 2006, the travel company offers organized and self-guided tours, as well as travel-related services for leisure travelers through its website Tuniu.com and mobile platform.
Tuniu also said it adjusted its product strategy to focus on innovative and premium products in order to meet customers' demand in the post-Covid-19 era.
In June, JD.com (Nasdaq: JD) has unloaded its entire 21% stake in Tuniu worth $65 million in June.
Tuniu hopes to see some improvement, however. In the third quarter, it expects to generate 85.3 million yuan to 170.5 million yuan in revenue, down between 80% and 90% year-over-year, but a 151% to 401% increase from the second trimester.
Shares in Tuniu were trading at $1.08 per share by midday Friday.