Update: MakeMyTrip’s share price, following the announcement of the results, fell off a cliff. At the end of November 15 2010, MMYT was trading at $28.02, down 26.55% (by $10.13). We were expecting a re-rating of the share after its first quarter as a listed company – the sense that we got from various analyses is that it was being rated in comparison with Chinese OTA CTrip. Well, India isn’t China.
Now, one impact of the MakeMyTrip listing, was a re-rating of other NASDAQ listed Indian Internet stocks – Rediff.com and Sify. No effect on them yet. Lets see what happens over the next few days…
Earlier: MakeMyTrip Limited, in its first quarter as a public listed company, has reported gross booking of $156 million for the quarter ending September 30th 2010, up $51.2 million (48.83%) year on year, on the back of healthy growth in transactions: Air Ticket transactions grew 34.74% year on year, leading to a 47.13% growth in gross bookings, while Hotels & Packages grew 41.44%, leading to a 63.94% growth in gross revenue from the segment. For the period, MMYT reported a loss for the period of $1.795 million, compared with profit of $0.019 million for the same period last year.
At the end of the period, MMYT had a Cash and cash equivalents balance of $56,980,463. In a statement, the company has given a guidance of $58 million and $61 million, for revenue less service cost.
Air Ticketing and Hotels & Packages Segments
– Air Ticketing: Revenue from air ticketing business increased by 40.1% to $10.3 million in Q2-11 from $7.3 million in Q2-10. This was due to increase in gross bookings by 47.13%, which was partially offset by reduction in net revenue margin to 7.4% from from 7.8% year-on-year. Air ticketing net revenue margin in the quarter, according to the company, improved by 60 basis points from 6.8% in the previous quarter as air bookings increased quarter to quarter, resulting from volume-related incentives from airlines, and increases in service fees and global distribution fees collected.
– Hotels and Packages: Revenue from hotels and packages business increased by 38.8% to $13.0 million in Q2-11 from $9.4 million in the corresponding quarter last year. MakeMyTrip’s Revenue less service cost increased by 34.9 % to $2.1 million in the quarter ended Q2-11 from $1.5 million in the quarter ended Q2-10. This was due to increase in gross bookings by 63.9% partially offset by reduction in net revenue margin to 11.9% from 14.4% in Q2-10. The company said that net revenue margins “normalized” from levels experienced in fiscal 2010 when travel suppliers provided favorable rates during the slowdown in India’s economy. Hotels & packages net revenue margins remained unchanged at 11.9% quarter on quarter.
Details: Press Release
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