Qunar’s second-quarter revenue jumped as mobile revenue soared more than 500%. The Chinese travel company, which is majority held by Baidu, reported a 127% jump in Q2 revenue to $64.5 million. Analysts polled by Thomson Reuters were expecting $56 million.
Mobile revenue shot up 511.8% to $22.9 million, accounting for 35.5% of total revenue vs. 13.2% in the year-ago quarter. But gross margin narrowed to 73.6% vs. 78.2% a year ago. The company sees Q3 revenue growth of 90% to 95%.
As China’s rising middle class stokes competition among Asian travel sites, U.S. companies like Expedia have taken stakes in local firms. Expedia owns a majority stake in eLong, a direct hotel booking site for users in China.
Ctrip.com International is another competitor in China for Qunar. Earlier this month Priceline announced plans to invest $500 million in Ctrip to boost its holdings in the company as it looks to expand its market abroad.
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