Online travel agent MakeMyTrip continues to report increased losses: a net loss of $9.1 million for the quarter ending June 30, 2013 (Q1-FY14), as compared to a $1.81 million profit reported in the corresponding quarter last year. This was on a Net Revenues (Revenue less service costs) of $26.01 million, up 8.9% from $23.88 million revenues in the same quarter last year. This is the third straight loss making quarter for MakeMyTrip.
The company says that excluding the effects of employee share-based compensation costs, merger and acquisitions related expenses, amortization of acquisition related intangibles, net change in fair value of financial liability in business combination, net loss on change in the fair value of derivative financial instruments and income tax benefit for the first quarter of both fiscal years 2014 and 2013 and the direct cost related to share registration by the shareholders in the quarter ended June 30, 2013, it would have registered a net loss (rather, Adjusted Net Loss) of $5.1 million for the quarter, as compared with a net profit (Adjusted Net Profit) of $1.8 million for the same quarter last fiscal.
Air Ticketing Revenues Decline: Earnings were pulled by a decline in net revenue from Air Ticketing, which was down 8.5% YoY to $14.25 million from $15.58 million in Q1-FY13. This was despite a 17% increase YoY in gross bookings to $251.1 million for the quarter and a 15.5% increase YoY in transactions to 0.95 million for the quarter. The net revenue margins declined to 5.7% from 7.3% a year ago, due to the reduction in the base commission from full service airlines to all travel agents. Air Ticketing contributed for 54.8% of MakeMyTrip’s net revenues for the quarter, down from 65.2% in the same quarter last year.
Hotels and Packages Revenues Increase: The hotels and packages business however continued to grow significantly, posting a 52.7% YoY increase in net revenues to $10.86 million for the quarter, up from $7.11 million in Q1-FY13. The gross bookings also increased by 48.6% YoY to $84.44 million and the transactions increased by 72.2% to 0.18 million transactions. Net revenue margins increased to 12.9% from 12.5% a year ago. The company attributed this growth partly to the acquisition of Hotel Travel Group and ITC Group in November 2012. Hotels and Packages contributed for 41.75% of MakeMyTrip’s net revenues for the quarter, up from 29.77% in the same quarter last year.
Other Revenue: Other revenues declined by 24.5% to $0.90 million for the quarter, down from $1.19 million revenues in the same quarter last year. The company attributed the decline to lower advertisement revenue from its websites, as it used the website inventory to promote its own product offerings.
Highlights During The Quarter
– In June 2013, MakeMyTrip had partnered with txtWeb to launch a SMS based bus ticketing service. Through this service, the company claimed to offer bus tickets for more than 1,300 operators over more than 12,000 routes in India.
– In May 2013, MakeMyTrip had launched a last minute hotel deals initiative on mobile and its website, through which it claimed to offer customers with a minimum of 30% discount on deals. Its mobile app and website displayed the last minute hotel deals as the first five hotels in search results for same-day check-in.
– In May 2013, MakeMyTrip had introduced Apple Passbook integration for its flight bookings. The company said these passes will also offer Flight reminders to Passbook users.
Download: MakeMyTrip Q1-FY14 Release