makemytrip

Online travel agent MakeMyTrip continues to post losses, although there is some improvement: net loss of $4.8 million for the quarter ended September 30, 2014, as compared to $7.5 million loss in the same quarter last year. This is MakeMyTrip’s eight straight loss making quarter.

The net revenues (revenues less service costs) however witnessed a significant 37.5% growth to $32.05 million for the quarter, from $23.31 million in the same quarter last year. The gross bookings also grew by 44.1% to $392.7 million from $272.6 million in the same quarter last year.

Air Ticketing up 19.6%: Revenues from Air ticketing business grew by 19.6% to $18.23 million for the quarter, from $15.24 million in the same quarter last year. This was driven by a 39.7% increase in transactions to 1.57 million for the quarter, from 1.1 million transactions in the same quarter last year. MakeMyTrip attributed this transaction growth to the special air fares offered by Indian domestic carriers.

Gross bookings also grew by 34% to $291.8 million for the quarter, from $217.7 million in the same quarter last year. Net revenue margins however dipped to 6.2% from 7% last year.

Air Ticketing accounted for 56.9% of MakeMyTrip’s net revenues for the quarter, down from 65.2% in the same quarter last year.

Hotel and Packaging: Revenues from the hotels and packages business grew by 76.8% to $12.5 million for the quarter, from $7.1 million in the same quarter last year. Number of transactions also grew by 70.9% to 0.3 million for the quarter, from 0.17 million transactions in the same quarter last year.

Gross bookings grew by 83.9% to $100.9 million for the quarter, from $54.86 million in the same quarter last year. Net revenue margins however dipped to 12.4% from 12.9% a year ago.

Hotels and Packaging business contributed for 39% of MakeMyTrip’s net revenues for the quarter, up from 30.4% in the same quarter last year. That being said, its worth noting that the segment has been driving MakeMyTrip revenue growth for a few quarters now and had even surpassed Air ticketing revenues for the company in the previous quarter.

Other Revenue: Other revenues grew by 32.1% year-on-year to $1.31 million for the quarter, from $0.99 million in the same quarter last year. This was primarily due to an increase in facilitation fees on travel insurance.

Ad expenses up: The company notes that its advertising expenses increased during the quarter to grow its hotel & packages business. The ad expenses along with increased payment gateway charges and outsourcing fees resulted in a 36.7% increase in MakeMyTrip’s “other” operating expenses to $23.5 million for the quarter, from $17.2 million in the same quarter last year.

$15 million Innovation Fund: During the quarter, MakeMyTrip had set up a $15 million Innovation Fund for investing in early-stage companies in the travel technology segment, with a special focus on mobile and IP-based companies, and also explore M&A opportunities. The company along with SAIF Partners had previously acquired 76.6% stake in the online travel meta search engine iXiGO for $18.5 million.

MakeMyTrip has also been on an acquisition spree of sorts to strengthen its growing hotel & packaging business. It has made five hotel-related acquisitions until now, of which four companies were overseas. Earlier in the year, MakeMyTrip Group CEO Deep Kalra had mentioned that they are actively looking for potential acquisitions including travel sites in places like Middle East and South-East Asia or companies with a niche mobile technology or talent.

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