Tuniu Reports Increased Packaged-Tour Revenue but Shifts to Operating Loss Amid Margin Pressure
Tuniu Corporation (NASDAQ:TOUR) reported a second-quarter operating loss despite an increase in packaged-tour revenue. Net revenue rose by 3.0% year-over-year to RMB138.9 million, with packaged tours growing at 6.8%. However, the company's cost of revenue surged 27.9%, leading to a significant decline in gross profit and margin contraction from 63.8% to 55.0%. This shift resulted in an operating loss of RMB6.1 million compared to an operating income of RMB7.1 million last year. The bear case highlights structural issues, including a declining share of outbound tours (now ~30%), reduced transaction volumes in the Middle East and Africa by over 20%, and lower advertising fees from tourism boards. Additionally, faster growth in less profitable self-guided travel products contributed to margin pressure. Sales and marketing expenses also increased significantly due to higher promotional costs. Despite these challenges, Tuniu maintained positive net income under GAAP (RMB0.7 million) and non-GAAP metrics (RMB2.2 million). The company ended the quarter with strong liquidity of approximately RMB1 billion in cash and investments.
Tickers: $TOUR
Topics: earnings gross margin decline operating loss revenue growth