Tuniu Suffers Wider 1Q Loss

Tuniu Corporation TOUR reported a wider loss from operations of RMB561.2 million (or US$87.0 million) for Q1 as compared to the RMB242.8 million incurred in the year-ago quarter. Its adjusted loss from operations was RMB504.1 million (or $78.2 million) in the first quarter.

Tuniu said that its net revenues jumped 62.8 percent to RMB 2.0 billion (or $315.1 million) in the three-month period from January–March. The company said that its gross booked advanced 62.5 percent to RMB3.1 billion (or $481.7 million), while the total number trips jumped 80.2 percent year-over-year.

Related Link: Deutsche Bank Initiates Coverage On Tuniu At Buy

The company's co-founder, chairman and CEO, Donald Yu, commented, "We had a solid first quarter performance with net revenues and packaged tour gross bookings growing 62.8 percent and 62.5 percent year-over-year, respectively. While we continue to be impacted by a slowing demand for Europe, we observed that customers who are choosing to travel to nearby destinations instead of farther destinations continue to book with the Tuniu platform. Our total number of trips continues to rapidly grow at 80.2 percent year-over-year and our returning customer contributed 43.6 percent of our gross booking during the first quarter. This reflects our customers' loyalty and preference for Tuniu as a comprehensive provider of leisure travel services."

Going forward, Tuniu expects to generate RMB2.338–2.414 billion of net revenues for Q2, which will represent a 54–59 percent growth year-over-year.

Tuniu closed Monday trading down 3.78 percent at $8.65.