Online travel agent MakeMyTrip has reported a loss of $34.9 million for the quarter ended September, 2016 (Q2 FY17). This is the 16th straight quarter of losses for the company. Losses were up from $12.2 million in the same quarter last year. However, the company reported revenues of $83.1 million during the quarter which was up 26.89% from $64.5 million in the same quarter last year.
Note that MakeMyTrip announced that it is merging with Naspers-owned Ibibo group and the transaction is expected to close by December 2016. The company mentioned that after the merger, Ibibo will own 40% stake in the combined entity. Others who will own a stake in the company include founders Rajesh Magow and Deep Kalra, SAIF Partners, Ctrip International.
The hotels and packages business now accounts for more than 69.34% of the company’s total revenue. Hotels revenue stood at $57.63 million for the quarter, growing 26.99% from $45.38 million in the September 2015 quarter. This was primarily due to a 172.7% increase in the number of transactions year over year. The average transaction value, however, decreased by 53% on a year on year basis.
The number of transactions in the quarter stood at 1.46 million growing 172.76% from 536,800 in Q2 FY16. Gross bookings increased 27.44% YoY to $151.67 million.
Air ticketing: Air ticketing revenues stood at $23.56 million up 27.39% from $18.49 million in the same quarter last year. “Air ticketing transactions and gross bookings growth in the second quarter of fiscal year 2017 was largely driven by the expansion of the travel market in India due to increased domestic travel from lower airfares, increased seat capacity,” MakeMyTrip said in its release.
The number of transactions stood at 2.2 million up 31% from 1.68 million in the same quarter last year. Gross bookings increased 8.39% from $315.35 million.
Other revenue: Other revenue increased to $1.9 million from $1.6 million in the quarter ended September 30, 2015.
Homestays, villas and other accommodation
This month, MakeMyTrip launched an accommodation platform called Rightstay which provides alternative stay options like villas, residential apartments, homestays and guest houses, similar to Airbnb. The platform allows hosts to register and list their properties. Users and home owners can chat with each other before committing to booking the place, and rate each other once the transaction in complete. As of now, the company claims to have over 10,000 properties listed across 200 cities.