Online travel agent (OTA) MakeMyTrip has reported an adjusted operating loss of $11.2 Mn in Q3 2020, down from $19.3 Mn in the previous quarter in the same fiscal. Meanwhile, the company’s revenue increased to $146.9 Mn, from $118 Mn in the previous quarter.
On a year-on-year basis, MakeMyTrip registered over 50% lower losses in the third quarter compared to the same period in FY2019 when it reported a loss of $22.2 Mn. Similarly, the revenue grew by 15.9% year-on-year (YoY) to $146.9 Mn from $124.8 Mn in Q3 FY2019.
When compared to the previous quarter, MakeMyTrip reduced its adjusted operating losses by 37.7%, while the revenue grew by 16% Q-o-Q. In Q2 FY20, MMT’s adjusted revenue recorded a 13.6% YoY increase to $181.1 Mn. In this quarter MMT has also raised its gross booking by 20.6% to $1.5Bn.
In terms of the yearly increase in revenue, MMT registered a 17.7% growth (15.9% after currency rate adjustments) from $124.8 Mn in Q3 FY 2019. Total adjusted revenue grew by 14.9% to $206.7 Mn, which MMT attributed primarily to 16.7% increase in revenue through air ticketing, 11.4% growth in income from hotels and packages, a 38.1% hike in revenue from bus ticketing along with a minor bump of 0.1% in other revenue sources.
Hotels and packages added $72 Mn to MakeMyTrip’s pocket in the quarter, followed by air ticketing’s $47 Mn, bus ticketing with $17.7 Mn and other services that added $8.2 Mn to MakeMyTrip’s revenue. In terms of the number of transactions, MakeMyTrip recorded 11.6 Mn air tickets, 8.4 Mn hotel and package deals, 8.2K standalone hotel bookings and 21.3 Mn bus tickets.
Along with the financials, the company also announced that group CEO and founder Deep Kalra would be stepping down from the role and taking over as executive chairman of the board. MMT cofounder Rajesh Magow will be leading the group operations. Magow was leading the India operations, but it’s unclear whether he would be juggling both roles in the long term.
Kalra said the restructuring at the top is a result of the company’s focus on strategy and optimisation of business processes. “We believe that separating the roles of Group CEO and Executive Chairman will allow us to focus more on long-term strategic opportunities within and outside India, while maintaining our market-leading position in our existing businesses,” Kalra said.