makemytrip

Online travel agent MakeMyTrip continues to report losses, although it seems to be slowly improving: $525,700 adjusted net loss for the quarter ended March 31, 2014, as compared to $6.5 million loss in the same quarter last year. This is MakeMyTrip’s sixth consecutive loss making quarter.

The net revenues (revenues less service costs) grew by 31% year-on-year (YoY) to $28.5 million for the quarter, up from $21.8 million revenue in the same quarter last year whereas the gross bookings grew by 23% YoY to $341.8 million from $311.7 million in the same quarter last year.

For the year ending March 31, 2014, the net revenues increased 31.6% YoY to $106.4 million from $88.17 million in the previous year, while the gross bookings increased 18.6% YoY to $1.26 billion. The adjusted net loss also improved to $6.04 million from $7.28 million loss in the previous year.

Air Ticketing revenues up 22.4%: Net revenues from Air Ticketing increased by 22.4% YoY to $16.1 million from $13.1 million in the same quarter last year. This is despite a 1.8% YoY decline in the number of transactions to 1.03 million transactions, from 1.05 million transactions in the same quarter last year. The company informed that the revenues increased, due to an increase in its net revenue margins to 6.4% for the quarter, up from 5.3% in the same quarter last year. Gross bookings also increased slightly to $250.7 million for the quarter, from $248.9 million in the same quarter last year.

Air Ticketing’s contribution to MakeMyTrip continue to decline: It accounted for 56.5% of MakeMyTrip’s net revenues for the quarter, down from 60.1% in the same quarter last year and 57.6% in the previous quarter.

For the year FY14, net revenues increased by 9.3% YoY to $62.1 million while the number of transactions increased by 5.4% YoY to 4 million transactions. Gross bookings also saw a marginal 0.4% growth to $943.7 million while the net margin increased to 6.6% for the year.

Hotel & Packages revenues up 43.7%: The hotels and packages business has been the growth driver for the company for the past few quarter and it grew significantly for this quarter as well: The net revenues increased by 43.7% to $11.1 million for the quarter, from $7.7 million in the same quarter last year.

This was due to a 45.1% YoY increase in its gross bookings to $91.1 million from $62.8 million in the same quarter last year and a 68.9% YoY increase in the number of transactions to 0.28 million from 0.17 million in the same quarter last year. The company mentioned that the acquisition of Easytobook group in February this year also helped the growth in this segment. Net revenue margins also increased to 12.3% from 12.1% in the same quarter last year.

Hotels and Packages now contribute for around 39% of MakeMyTrip’s net revenues for the quarter, up from 35.3% in the same quarter last year.

For FY14, net revenues increased by 44.9% YoY to $40 million while the number of transactions increased by 53.1% YoY to 0.87 million transactions. Gross bookings also saw a significant 38.1% growth to $317.5 million while the net margin increased to 12.6% for the year.

MakeMyTrip Group CEO Deep Kalra mentioned that its non-air revenue represented around 41% of MakeMyTrip’s net revenue for the year FY14, up from 35% in the previous year.

Other Revenue: Other revenues increased by 56% YoY to $1.4 million for the quarter, from $0.9 million in the same quarter last year. This was primarily due to an increase in facilitation fees from travel insurance sales.

For the year FY14, other revenues increased by 15.8% to $4.4 million primarily due to an increase in facilitation fees from travel insurance sales.

Expenses: The personnel expenses declined to $8.4 million for the quarter, from $9.8 million due to lower employee share-based compensation costs while other operating expenses increased by 15.8% to $22.5 million for the quarter, from $19.4 million in the same quarter last year due to an increase in advertising expenses and payment gateway charges which MakeMyTrip says is in line with the growth in its business and consolidation of its recent acquisition.

Share Buyback: For the year ended March 31, 2014, MakeMyTrip has repurchased 100 ordinary shares at an average price of around $12.50 per share. MakeMyTrip informs that it still has authority from the company board to repurchase up to $24.49 million worth of the company’s outstanding ordinary shares.

Download: Press Release & Financials