Online travel agent MakeMyTrip (MMT) reported a net loss of US $45.3 million for the quarter ended December 31, 2017 (Q3 FY18). The company had reported net profit of $16.5 million in the same quarter last year. Profitability was weighed down by the increase of 144.6% in marketing and sales promotion expenses, which stood at $109 million, from $44.5 million in the same quarter last year. In Q2 FY18, marketing and sales promotion expenses were $116 million.
The company said that the primary drivers of this increase are customer acquisition programs to accelerate growth of its hotel booking business and increases in brand advertisement, and the consolidation of marketing and sales promotion expenses of the ibibo Group.
Note: 1 USD = 64 INR (as on Feb 09 2018)
MMT’s personnel expenses increased significantly, by 97%, to $27 million in the quarter from $13.7 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. In Q2 FY18, personnel expenses stood at $29 million.
Total revenue stood at $151.4 million up 98% from $76.5 million in the same quarter last year. The company mentioned that in Q3 FY18.
Hotel and packages revenue
Hotels and packages continued to be the majority contributor to MakeMyTrips’s revenue.
Revenue from the segment stood at $83.8 million, up 136.4% from $35.4 million in the corresponding quarter last year.
Gross bookings for hotels and packages stood at $367.8 million up 101.5% from $182.5 million in the same quarter last year, the increase was driven by the consolidation of the ibibo Group acquired in January 31, 2017.
The total number of transactions stood at 3.2 million up 115% from 1.5 million in Q3FY18. On sequential basis it reduced from 3.5 million to Q2 FY18.
Air ticketing revenue
Revenue from the air ticketing business increased by 33.3% to $51 million in Q3 FY18 from $38.2 million in Q3 FY17.
Gross bookings increased 82.4% to $690 million from $378 million in Q3 FY17.
The number of transactions stood at 4 million, up 71.6% from 2.3 million in the same quarter last year.
Other revenue includes redBus, Ryde and Rightstay brands, which MakeMyTrip acquired from ibibio. Other revenue stood at $16.6 million for the quarter, as compared to $2.8 million in Q3 FY17.
Bus ticketing revenue (less service costs) stood at $11.6 million for the quarter ended December 31, 2017.
This was primarily contributed by ibibo Group consolidation coming from 9.2 million travelled bus tickets.
Bus tickets with gross bookings stood at $129.8 million.