Page 2 - Fourth Quarter 2015 Results

 

 

 

Fourth Quarter 2015 Results

 

Net revenues were RMB1.9 billion (US$292.6 million) in the fourth quarter of 2015, representing a year-over-year increase of 104.1% from the corresponding period in 2014. The increase was primarily due to the growth in revenues from organized tours, self-guided tours and other revenues. The number of trips sold increased by 98.7% to 1,110,429 in the fourth quarter of 2015 from 558,715 in the fourth quarter of 2014.

  • Revenues from organized tours, substantially all of which are recognized on a gross basis, were RMB1,804.4 million (US$278.6 million) in the fourth quarter of 2015, representing a year-over-year increase of 101.4% from the corresponding period in 2014. The increase was primarily due to the rapid growth in demand for travel to certain international destinations, such as Japan, Australia, New Zealand, and North America and for domestic tours. In the fourth quarter of 2015, the number of trips of organized tours (excluding local tours) increased by 122.9% to 429,182 from 192,505 in the same period last year, and the number of trips of local tours increased by 44.8% to 362,182 from 250,046 in the fourth quarter of 2014.

 

  • Revenues from self-guided tours, which are recognized on a net basis, were RMB52.2 million (US$8.1 million) in the fourth quarter of 2015, representing a year-over-year increase of 82.4% from the corresponding period in 2014. The increase in revenues was primarily due to the growth in travel to domestic destinations, certain islands and Japan. The number of trips of self-guided tours increased by 174.7% year-over-year to 319,065 in the fourth quarter of 2015 from 116,164 in the fourth quarter of 2014.

 

  • Other revenues, were RMB47.3 million (US$7.3 million) in the fourth quarter of 2015, representing a year-over-year increase of 434.3% from the corresponding period in 2014. The increase was primarily due to a rise in service fees received from insurance companies, revenues from tourist attraction tickets, online financial services and other travel-related products, which are recognized on a net basis.

Cost of revenues was RMB1,815.6 million (US$280.3 million) in the fourth quarter of 2015, representing a year-over-year increase of 109.4% from the corresponding period in 2014. As a percentage of net revenues, cost of revenues was 95.8% in the fourth quarter of 2015 compared to 93.4% in the corresponding period in 2014.

 

Gross margin was 4.2% in the fourth quarter of 2015 compared to 6.6% in the fourth quarter of 2014. The decline in gross margin was primarily due to Tuniu's competitive pricing strategy and the higher costs associated with the new regional service centers.

 

Operating expenses were RMB641.1 million (US$99.0 million) in the fourth quarter of 2015, representing a year-over-year increase of 169.3% from the corresponding period in 2014. Share-based compensation expenses, which were allocated to operating expenses, were RMB22.3 million (US$3.4 million) in the fourth quarter of 2015. Amortization of acquired intangible assets, which was allocated to operating expenses, was RMB36.9 million (US$5.7 million) in the fourth quarter of 2015. Non-GAAP[5] operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB581.9 million (US$89.8 million) in the fourth quarter of 2015, representing a year-over-year increase of 156.2%.

 

 

 

 

 

[5] The section below entitled "About Non-GAAP Financial Measures" provides information about the use of non-GAAP financial measures in this press release, and the attached "Reconciliations of GAAP and non-GAAP Results" at the end of this press release reconciles non-GAAP financial information with the Company's financial results under GAAP.