On the evening of December 5th, Tuniu Travel Network (NASDAQ: TOUR) released its unaudited third quarter performance report as of September 30, 2024. In the third quarter of 2024, the company achieved a net revenue of RMB 186 million, an increase of 4.4% compared to the same period in 2023; The net profit was 43.9 million yuan, a year-on-year increase of over 12%, and the quarterly profit reached a new high since its listing. As of September 30th, the net profit of Tuniu Tourism Network in the first three quarters has exceeded 100 million yuan.
We are pleased to see that the company continued to achieve its profit target in the third quarter. This quarter, our core vacation business continued to grow. Faced with the increasing demand in the peak season market and the characteristics of diversified development, we strengthened the coverage of our products and destinations, providing differentiated and personalized services to more customer groups. At the same time, we closely follow the evolution of public consumption habits, continue to explore the marketing model of 'tourism+new media', combine services with technology, and continuously improve user experience. In the future, we will continue to take providing high-quality customer experience as our responsibility and strive to achieve high-quality development, "said Mr. Yu Dunde, CEO of Tuniu Tourism Network.
Specifically, in the third quarter of this year, Tuniu Tourism Network's revenue from packaged tourism products was 159.3 million yuan (22.7 million US dollars), an increase of 6.2% compared to the same period in 2023. This growth was mainly due to the growth of group tours; Other income was RMB 26.7 million (USD 3.8 million), a decrease of 5.1% compared to the same period in 2023. This decline is mainly due to the decrease in income from cross industry cooperation. The company's gross profit for the quarter was RMB 121.8 million (USD 17.4 million), an increase of 6.1% compared to the same period in 2023.
According to the financial report, the operating profit of Tuniu Tourism Network in the third quarter was RMB 29.2 million (USD 4.2 million), and the operating profit for the same period in 2023 was RMB 31.7 million; The operating profit under non US accounting standards is RMB 31.3 million (USD 4.5 million). During the reporting period, the company's sales and marketing expenses amounted to RMB 60.6 million (USD 8.6 million), a year-on-year increase of 53.0%. The increase in expenses was mainly due to an increase in promotion expenses; Sales and marketing expenses accounted for 32.6% of net revenue, an increase from 22.2% in the same period of 2023.
In response to new consumer demands and trends, the company has continuously upgraded and optimized its product structure, including "pure play groups," "small group tours," and "private groups," through the launch of the "Niu Ren Special Line." This has expanded the coverage of domestic and international destinations, and customer satisfaction has remained above 98% throughout the year. Data shows that in the first three quarters of this year, the transaction volume of "Niuren Special Line" increased by over 30% year-on-year, and the proportion of such product transactions in packaged tourism products continued to rise. It is reported that the company has invested over 2 billion yuan in the research and development of a dynamic packaging system for all categories of tourism.
It is worth noting that the live streaming format of Tuniu Tourism Network has also made continuous progress in recent years. Data shows that as of the end of May this year, the transaction volume and write off amount of Tuniu live streaming have exceeded the full year of 2023. In the third quarter of this year, the write off amount of Tuniu live streaming increased by over 140% year-on-year, and the transaction amount increased by nearly 100% year-on-year. The profitability of the live streaming business and its contribution to the overall business of the company have steadily increased. It is reported that the company has currently established over 60 self operated live streaming accounts and signed hundreds of influencers with MCN agencies. At the same time, the company continues to deepen its cooperation with MCN institutions, further expand its content creation and distribution channels, and continuously integrate resources and expand its business through close cooperation with destination cultural and tourism, universities, and cross industry partners. Multi channel efforts have steadily improved profitability. In the third quarter, based on the increase in demand during peak seasons and the increase in product diversity, the company's offline store transaction volume also achieved significant year-on-year growth; At the same time, actively leveraging its advantages in outbound tourism, the company also continues to cooperate and promote with multiple overseas destinations.
According to the statistical results of the domestic tourism sampling survey released by the Ministry of Culture and Tourism, the number of domestic tourists and the total travel expenses of domestic tourists maintained year-on-year growth in the first three quarters of 2024. During this year's National Day holiday, the tourism market continued to maintain a steady growth trend. National Day themed tours and traditional culture tours once again lifted the peak of holiday travel, and the popularity of outbound tourism has significantly increased, opening a good prelude for the fourth quarter of this year. After entering November, the ice and snow tourism market has seen a surge in bookings, with bookings for related products and destinations rapidly increasing. Tourist products such as winter retreats and off-season tours are also highly favored, and bookings are also booming. In addition, the addition of two statutory holidays in 2025 will continue to boost the tourism market next year. Based on market analysis and company operations, Tuniu Travel Network expects a net revenue of RMB 100 million to RMB 105 million in the fourth quarter of 2024, a year-on-year increase of 0% to 5%, according to its financial report.