wordpress blog stats
Connect with us

Hi, what are you looking for?

MakeMyTrip posts net loss of $62.32M as marketing & personnel costs continue to increase

TRAI in-flight internet

Online travel agent MakeMyTrip reported a net loss of $62.32 million for the quarter ended September 30, 2017 (Q2 FY18). Losses widened from $39.45 million in the same quarter last year. Profitability was weighed down by the increase in marketing and sales promotion expenses, which stood at $115.9 million, up 139.8% year-on-year (YoY) from $48.4 million in the same quarter last year. In Q1 FY18, marketing and sales promotion expenses were $133.021 million.

Note: 1 USD = 64.6 INR

Personnel expenses increased significantly by 103.7% to $29 million in the quarter from $14.2 million in the same quarter last year. This was “mainly due to the consolidation of the ibibo acquisition, an annual increase in wages in fiscal year 2017 and severance cost related to a prior acquisition,” the company said. In Q1 FY18, personnel expenses stood at $29.8 million.

Total revenue stood at $152.9 million up 84% from $83.1 million in the same quarter last year. The company mentioned that in Q2 FY18, revenue includes certain customer discounts (essentially promotion expenses) to the tune of $19.9 million.

Hotel and packages revenue

Hotels and packages continued to be the majority contributor to MakeMyTrips’s revenue.

  • Revenue from the segment stood at $98.3 million, up 70.5% from $57.6 million in the corresponding quarter last year.
  • Gross bookings for hotels and packages stood at $342.3 million up 125.7% from $151.67 million in the same quarter last year.
  • The Total number of transactions stood at 3.52 million up 140.7% from 1.46 million in Q1 FY18.

Air ticketing revenue

  • Revenue from the air ticketing business increased by 71.2% to $40.3 million in Q2 FY18 from $23.6 million in Q2 FY17.
  • Gross bookings increased 81.9% to $621.72 million from $341.82 million in Q2 FY17.
  • The number of transactions stood at 3.54 million, up 60.8% from 2.2 million in the same quarter last year.

Other revenues

Other revenue includes redBus, Ryde and Rightstay brands, which MakeMyTrip acquired from ibibio. Other revenue stood at $14.3 million for the quarter, as compared to $1.9 million in Q2 FY17.

  • Bus ticketing revenue (less service costs) stood at $9.6 million for the quarter ended September 30, 2017.
  • This was primarily contributed by ibibo Group consolidation coming from 9.7 million travelled bus tickets.
  • Bus tickets with gross bookings stood at $106.2 million.
  • The increase in other revenue was further aided by growth in facilitation fees on travel insurance.

Download: Financials

You May Also Like

News

Key takeaways Network18’s digital news revenue increased by 50% YoY for the second consecutive quarter Consolidated Net Profits grew 125% YoY Network18 Digital saw...

News

Netflix’s two day StreamFest in December 2020—where users in India could practically watch Netflix’s entire catalogue for free—brought millions of users to the service,...

News

Media company HT Media Limited posted a consolidated operational revenue of ₹341 crore, which is down 40% YoY and up 31% over the previous...

News

E-commerce marketplace IndiaMART InterMESH Ltd. reported a 34.5% increase in traffic on a year-on-year (YoY) basis, growing to 253 million in the quarter ended...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ