MakeMyTrip Q1 net revenue more than doubles, loss widens

MakeMyTrip Ltd, India’s largest online travel services firm, said on Wednesday its net revenue for the quarter through June more than doubled thanks to its acquisition of ibibo Group but loss widened due to higher expenses.

Revenue, excluding service costs, climbed 135% in constant currency terms to $141.2 million in the quarter ended June from $58.8 million a year earlier, the NASDAQ-listed company said in a statement. Overall revenue grew 55% to $192.1 million.

Net revenue from the air ticketing business rose 86% in constant currency terms to $45.6 million while net revenue from the hotels and packages business surged almost 140% to $81.2 million.

“Our strong operating performance in the quarter reflected MakeMyTrip’s strategy of pursuing high growth and share gains and optimisation of operating costs,” said Deep Kalra, group chairman and group CEO at MakeMyTrip.

The company’s adjusted net loss, however, expanded to $52 million from $30.3 million as costs increased.

Marketing and sales promotion expenses jumped to $133.0 million from $52.7 million. This is attributed to significant customer inducement and acquisition programmes expenses, brand advertisement expenses and consolidation of marketing and sales promotion expenses of ibibo Group Holdings (Singapore) Pte. Ltd.

MakeMyTrip had agreed to acquire ibibo Group in October last year, in the biggest-ever consolidation move in India’s online travel services sector. The all-stock deal involved South African technology group Naspers and China’s Tencent—which owned 91% and 9%, respectively, in ibibo Group—selling the firm to MakeMyTrip in exchange for a 40% stake in the combined entity.

MakeMyTrip also said that employee costs for the April-June period surged to $29.8 million from $13.1 million a year earlier. Other operating expenses increased 58.5% to $29.6 million on account of an increase in payment gateway charges, among others.

The company competes with the likes of Yatra Online Inc, which operates travel portal Yatra.com. On Monday, Yatra reported a 33.8% jump in net revenue for the quarter ended June but swung to an adjusted operating loss.

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