The NASDAQ-listed online travel services firm MakeMyTrip’s (MMT) revenue for the first quarter ended June 30, rose 23.2 per cent to $64.1 million from $52 million in the year-ago period, boosted mainly by a strong performance of the hotels and packages segment.
Net loss for the quarter was $0.8 million, compared with a profit of $0.8 million in the year-ago quarter, while adjusted net income (profit for the period excluding employee share-based compensation costs, costs related to follow-on public offering, interest accretion on financial liability related to business combination, and net loss on change in the fair value of derivative financial instruments in the first quarter of fiscal 2013) rose to $1.8 million from $1.5 million in the year-ago quarter.
“MakeMyTrip delivered strong financial results in the first fiscal quarter despite an increasingly challenging operating environment. We were able to deliver net revenue growth in line with our guidance by continuously enhancing our customers experience and executing on expanding our hotels and packages business,” said Deep Kalra, Chairman and CEO of MakeMyTrip.
MakeMyTrip competes with companies like Yatra.com and Cleartrip.com in India.
MMT’s revenue less service costs increased 13.2 per cent YoY to $23.9 million in first quarter as a result of an 8.2 per cent increase in its air ticketing revenue less service costs, as well as a 20.2 per cent increase in its hotels and packages revenue less service costs.
Last month, the company entered into an agreement with the remaining shareholders of Luxury Tours & Travel Pte Ltd (LTT), which amended the terms of the original share purchase agreement (SPA) signed in February 2011. As per the amended terms, MMT will purchase the remaining shares held by remaining shareholders (also the original selling shareholders) in LTT by December 31 this year at the same price per share as paid for the tranche purchased on the first closing date
Air Ticketing: Revenue from air ticketing business increased by 17.1 per cent to $17.2 million in the quarter ended June 30, 2012 from $14.7 million in the quarter ended June 30, 2011. The revenue less service costs increased 8.2 per cent to $15.6 million in the quarter. According to the travel services firm, this was due to an increase in net revenue margin from 6.6 per cent in the year-ago quarter to 7.3 per cent in the quarter ended June 30 as well as increased average transaction values on materially higher airfares, though partially offset by a decrease in gross bookings of 1.9 per cent year-on-year.
Hotels and Packages: Revenue from hotels and packages business increased 25.1 per cent to $45.8 million in the quarter. The revenue less service costs increased to $7.1 million in the quarter ended June 30 from $5.9 million in the year-ago quarter. This was due to an increase in gross bookings by 25.4 per cent, which was partially offset by a reduction in net revenue margin from 13.1 per cent in the year-ago quarter to 12.5 per cent in the this quarter.
Personnel Expenses: Personnel expenses increased to $7.6 million in Q1 mainly as a result of employee share-based compensation costs of $2.7 million as against $0.14 million in the year-ago period. It was also due to increases in annual wages and average employee headcount. Excluding employee share-based compensation costs, personnel expenses as a percentage of net revenue decreased by 33 basis points year over year and 1.2 percentage points over the previous quarter.
Other Revenue: Other revenue increased to $1.2 million in Q1 from $0.8 million a year ago, primarily due to an increase in income from advertisements.
(Edited by Prem Udayabhanu)
Leave Your Comment
3 years ago
NASDAQ-listed online travel services firm MakeMyTrip (MMT) has picked a small...
7 years ago
India’s top online travel agency MakeMyTrip has joined hands with its largest...
3 years ago
The country’s top online travel agency MakeMyTrip Ltd has acquired 18 per cent...