Tuniu Corp Q2 Loss Narrows On Packaged Tours Growth

Online leisure travel company Tuniu Corp TOUR reported second-quarter FY21 sales growth of 373.1% year-on-year, to RMB161.0 million ($24.9 million).
The revenue increase was driven by the revenue growth from packaged tours which grew by 906.9% Y/Y to RMB126.5 million ($19.6 million).
Operating expenses fell 39.8% Y/Y to RMB95.1 million ($14.7 million).
Gross profit jumped 792.2% Y/Y to RMB69.0 million ($10.7 million), with the margin expanding 2010 basis points to 42.8%.
The operating loss narrowed to RMB(26.2) million ($(4.1) million).
The company held RMB1.1 billion ($175.0 million) in cash and equivalents as of June 30, 2021.
Loss per ADS was $(0.03).
"Our business saw a strong recovery in the second quarter, as we achieved revenue growth for the first time since the COVID-19 outbreak and returned to positive operating cash flow," said CEO Donald Dunde Yu.
Outlook: Tuniu sees Q3 FY21 revenue of RMB111.2 million - RMB123.5 million, representing a 0%-10% decrease year-over-year.
Price action: TOUR shares closed lower by 0.66% at $1.50 on Friday.

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