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MakeMyTrip Q2FY12 Results: Profits At $1.52M; To Acquire My Guest House

MakeMyTrip has reported gross booking of $245 million for the quarter ending September 30th 2011, up 57 % year over year.  Air Ticket transactions grew 60.4% year on year, leading to a 54.2% growth in gross bookings, while Hotels & Packages transactions increased by 135.8%year on year, leading to a 79.8% growth in gross revenue from the segment. For the quarter, MMYT reported a profit for the period of $1.526 million, compared with $.579 million for the same period last year, on a Net Revenue (total revenue less service cost) growth of 65.8% to $21.333 million, up from $12.867 million year on year.

Investment in My Guest House Accomodation Pvt Ltd.

MakeMyTrip has announced that it has entered into a shareholders’ agreement and share subscription and purchase agreement with My Guest House Accommodations Private Limited (MGH), a company that aggregates, sells and distributes hotel room inventory focused on budget lodging accommodations and serviced apartments, and its existing shareholders to acquire 100% of MGH’s ordinary shares. The acquisition will be through an earn out structure based upon the achievement of various business parameters spread over eight years. MakeMyTrip expects the first closing to take place in November 2011, after which the Company intends to acquire an approximately 29% stake in MGH against a cash investment of approximately $1 million. According to a statement issued by MakeMyTrip, the move will strengthen connectivity with hotels in India and allow it to improve efficiency in the distribution of hotel room inventories.

Segment Details

Air Ticketing:  Revenue from air ticketing increased by85.1% to $19 million for the quarter, up from $10.3 million the same quarter last year. Net revenue margins increased to 7.8%, from 7.4% a year ago. Gross bookings were up 54.2%.

Hotels and Packages: Revenue from hotels and packages business increased by 83.2% to $23.8 million for the quarter, up from $13 million a year ago. Net revenue (revenue less service cost) increased by 83.7% to $3.8 million, from $2.1 million for the quarter ending September 2010. Gross bookings were up 79.8%, net revenue margin increased to 12.1% from 11.9% a year ago. Sequentially there was an increase from last quarter’s net revenue margins of 11.9%.

Notes:
– Other revenue increased to $0.9 million from $0.5 million, primarily due to increase in sale of rail tickets, bus tickets and increase in other miscellaneous income.
– the Corporate booking business is insignificant for MMYT, and their business is mostly B2C leisure travel.
– Personnel Expenses increased to $6.7 million from $3.4 million year on year.

Download: Press Release | Earnings Call | Previous Quarter

Related:
MyGuestHouse.net Aggregates Budget Accommodation In India

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