Online travel agent MakeMyTrip reported a net loss of $68.45 million for the quarter ended June 30 (Q1 FY2018). Losses widened from $14.31 million from the same quarter. Profitability was weighed down with increased marketing and sales promotion expenses which stood at $133.021 million for the quarter compared to $52.68 million in the same quarter.
“Primary drivers of this year on year increase include significant customer inducement and acquisition programs expenses incurred to accelerate growth in our standalone hotel booking business and increases in brand advertisement expenses that was incurred in the quarter ended June 30, 2017 and the consolidation of marketing and sales promotion expenses of the ibibo Group,” the company said in its financial disclosures.
Personnel expenses shot up by 126.3% to $29.8 million in the quarter from $13.1 million in the same quarter last year. This was due to higher share-based compensation costs and the consolidation of the ibibo acquisition.
Total revenue stood at $192.056 million up 58.4% from $121.2 million in the same quarter last year.
Hotel and packages segment
Hotels and packages continued to be the majority contributor to MakeMyTrips’s revenue.
- Revenue from the segment stood at $134.574 million up 40.81% from $95.571 million from the same quarter last year.
- MakeMyTrip India Standalone online hotels business accounted for over 94.8% of all Hotels and packages room nights in Q1 FY18.
- Gross bookings for hotels and packages stood at $374.35 million up 90.3% from $196.69 million in the same quarter last year.
- The Total number of transactions stood at 3.58 million up 130.7% from 1.55 million in Q1 FY17.
Air ticketing revenue
- Revenue from the air ticketing business increased by 73.1% to $41.3 million in the quarter ended June 30, 2017 from $23.9 million.
- Gross bookings increased 76% to $649.97 million from $369.25 million in Q1 FY17.
- The number of transactions stood at 3.42 million, up 59.1% from 2.15 million in the same quarter last year.
Other revenue includes redBus, Ryde and Rightstay brands which MakeMyTrip acquired from ibibio. Other revenue stood at $16.2 million in the quarter compared to $1.8 million in Q1 FY17.
- Bus ticketing revenue (less service costs) stood at $11.2 million in the quarter ended June 30, 2017
- Bus tickets with gross bookings stood at $140.2 million.
- The increase in other revenue was further aided by growth in facilitation fees on travel insurance.