China's Tuniu Q2 gross profit falls on higher marketing spend
China's Tuniu Q2 gross profit falls on higher marketing spend
Overview
China online leisure travel firm's Q2 revenue grew 3% yr/yr, driven by packaged tours
Gross profit for Q2 fell 11% yr/yr as cost of revenues rose sharply
Company expects Q3 revenue to rise up to 5% yr/yr
Outlook
Tuniu expects Q3 2026 net revenues of RMB202.1 mln to RMB212.2 mln
Company sees Q3 2026 revenue rising 0% to 5% year-over-year
Result Drivers
PACKAGED TOURS - Revenue growth was mainly driven by increased sales of organized tours, according to the company
MARKETING SPEND - Higher sales and marketing expenses were mainly due to increased promotion spending
ADVERTISING SERVICES DECLINE - Other revenues fell due to lower fees from advertising services to tourism boards and bureaus
Company press release: ID:nPn3hZ6Kna
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| RMB 138.92 mln |
|
Q2 Net Income |
| RMB 345,000 |
|
Q2 Gross Profit |
| RMB 76.44 mln |
|
Q2 Operating Expenses |
| -RMB 82.53 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the leisure & recreation peer group is "buy"
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 18 three months ago
Reuters Recommended Reads
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Aug 24 - New Zealand's Tourism Holdings FY26 profit jumps 34% on cost-saving actions
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)