(Yicai Global) Dec. 1 -- Although Tuniu Corp.'s [NASDAQ:TOUR] net income grew year on year in the third quarter of this year, its net losses widened due to soaring costs and increased competition, according to the third quarter results of HNA Group Co. [SHA:900945]'s online partner tuniu.com.
Tuniu's net income hit CNY4 billion (USD 607 million) in the third quarter, up by 35.7 percent from a year ago, according to its third quarter results. However, net losses attributed to ordinary shareholders were CNY568.5 million (USD85.2 million), compared with net losses attributed to ordinary shareholders of CNY 433.3 million for the same period last year.
Tuniu continued to pay high costs due to fierce competition, from rivals such as Qunar and Ctrip, whose business units recently merged, Wei Changren, chief analyst at Jinlu Consulting, said. Although its income increased from last year, Tuniu kept making losses. Its net losses widened further compared with a year ago.
Tuniu's operating costs reached CNY3.8 billion (USD571.7 million) in the third quarter, an increase of 35.4 percent from a year ago, according to its third quarter results. Operating expenses stood at CNY832.3 million (USD124.8 million) in the third quarter, up by 58 percent year on year.