MakeMyTrip has reported a net loss of $5.235 million for the quarter ending December 31, 2012, as compared to a $0.041 million profit reported for the same period last year, on Net Revenues (Revenue less service costs) of $22.35 million, down 5.5% from $23.65 million for the same period last year. 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 third quarter of both fiscal years 2013 and 2012, it would have recorded a net loss (rather, Adjusted Net Loss) of $2.6 million in the quarter, as compared with a net profit (Adjusted Net Profit) of $3.1 million for the same quarter last fiscal.
Earning were pulled down by a decline in net revenue from Air Ticketing, which was down 22% to $13.53 million from $17.36 million, despite gross bookings (Air Ticketing) increasing by 31.1% to $253.51 million. Air ticketing transactions increased by 15.5% to 1.019 million from 0.884 million reported for the same quarter last year. This was because of a decrease in net revenue margin to 5.3% from 9.0% a year ago, mainly due to reduction in airlines commission.
Some respite was provided by an growth in its Hotels & Packages business: Net Revenues from the segment increased by 47% to 7.48 million from $5.34 million, on gross bookings of $70.91 million, up 61.1% from $44.01 million. This includes revenue contribution from Hotel Travel Group that MMYT acquired during the quarter. Hotels & Packages transactions increased by 68.2% to 0.186 million from 0.110 million for the same period last fiscal. Net revenue margin declined to 11.1% from from 12.1% for the segment, due to selective offers for customers from the company.
Other (Net) revenues were flat at $0.96 million for the quarter, up marginally (2%) from $0.94 million in the same quarter last year.
HotelTravel Acquisition: On November 6, 2012, MakeMyTrip announced that it has acquired complete stake in the companies operated by the Hotel Travel Group (HT Group) for $25 million. The group has been operating an online travel information and hotel booking portal Hoteltravel.com for more than ten years and has presence in Thailand, Singapore and Malaysia.
On November 27, MakeMyTrip had announced that it has acquired a majority equity interest in ITC Group, a Thailand based hotel aggregator for $3.2 million. MakeMyTrip has paid $2.2 million to the existing shareholders for the sale of their shares in the ITC Group and paid $1 million for subscription of new shares in the ITC Group. MakeMyTrip will also acquire the remaining shares of the ITC Group from the existing shareholders in cash, payable in four tranches, over an earn-out period ending December 2016, at a price based on valuation linked to the future profitability of the ITC Group.
Download – Press Release
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