Online travel agent MakeMyTrip (MMT) reported a net loss of $25.7 million for the quarter ended March 31, 2018 (Q4 FY18). The company had reported a net loss of $33 million in the same quarter last year. While the net loss has improved YoY earnings were weighed down by the increase of 70.8% in marketing and sales promotion expenses, which stood at $145.3 million, up from $85 million in the same quarter last year.
The company said that the primary drivers of this increase are customer acquisition programs to accelerate the growth of its hotel booking business and increases in brand advertisement, and the consolidation of marketing and sales promotion expenses of the ibibo Group.
MMT’s personnel expenses decreased by 13.1% at $28.4 million in the quarter down from $32.7 million in the same quarter last year. This was “mainly due to the higher share based compensation costs in the quarter ended March 31, 2017.” This included a one-time share-based compensation cost of $9.0 million following MakeMyTrip’s acquisition of ibibo.
Total revenue stood at $157.4 million up 31.5% from $120.33 million in the same quarter last year.
Hotel and packages revenue
- Hotels and packages continued to be the majority contributor to MakeMyTrips’s revenue.
- Revenue from the segment stood at $93.4 million, up 18.4% from $78.9 million in the corresponding quarter last year.
- Gross bookings for hotels and packages stood at $305.1 million up 42.4% from $214.2 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 2.85 million up 21.5% from 2.35 million in Q4FY17.
Air ticketing revenue
- Revenue from the air ticketing business increased by 37.8% to $45.3 million in Q4 FY18 from $32.9 million in Q4 FY17.
- Gross bookings increased 63% to $743 million from $455.9 million in Q4 FY17.
- The number of transactions stood at 4.2 million, up 56.7% from 2.7 million in the same quarter last year.
Other revenue includes redBus, Ryde and Rightstay brands, which MakeMyTrip acquired from ibibo. Other revenue stood at $19.1 million for the quarter, as compared to $8.3 million in Q4 FY17.
Bus ticketing revenue (less service costs) stood at $12 million for the quarter ended March 31, 2018.
This was primarily contributed by ibibo Group consolidation coming from 11 million travelled bus tickets. Bus tickets with gross bookings stood at $135.6 million.