Online travel company MakeMyTrip posted financial results for the second quarter of FY19 with a 25.3% increase in Adjusted Revenue reaching $160.1 Mn. The company generated revenue of $103.6 Mn.
For the fiscal quarter ended September 30, 2018, Gurugram headquartered company increased its Gross Bookings by 26.9% YoY reaching $1.2 Bn.
Deep Kalra, Group Chairman and Group CEO said, “The MakeMyTrip Group continued to improve upon its strong operating and financial performance during the quarter by continuing to build efficiencies in our operating costs while maintaining healthy growth.”
In its Earnings release, MakeMyTrip emphasised that the Effective April 1, 2018, it has adopted the new revenue recognition standard, “IFRS 15 wherein promotion expenses in the nature of customer inducement/acquisition costs for acquiring customers and promoting transactions across various booking platforms such as upfront cash incentives and select loyalty programs cost, which when incurred were previously recorded as marketing and sales promotion costs, are now being recorded as a reduction of revenue.”
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In line with the new accounting standard, here’s a quick glimpse at the numbers for Q2 FY19:
- Revenue from air ticketing business was $41.1 Mn in the quarter ended September 30, 2018
- Revenue from the hotels and packages business was $44.9 Mn in Q2
- Revenue from the bus ticketing business was $11.8 Mn
- Personnel expenses decreased by 0.9% to $28.7 Mn
- Marketing and sales promotion expenses decreased by 61.4% to $44.8 Mn in the quarter ended September 30, 2018
- Results from Operating Activities was a loss of $39.8 Mn in Q2
As a result, MakeMyTrip controlled its losses by 24.5% posting $47 Mn as compared to a loss of $62.3 Mn in the quarter ended September 30, 2017.
In the value segment, the Air Ticketing for flight segments increased by 29.5% YoY in Q2 while Bus Ticketing for travelled tickets increased by 53.3% YoY in the quarter.
The company has been strengthening its presence across borders and also expanding its product portfolio. Here’s a quick look at the activities at MakeMyTrip:
- MakeMyTrip launched ‘Experiences’ aimed at providing customers with curated and unique hyperlocal travel services
- Indian arm received over $24.74 Mn funding from the parent company
- It recently invested in Bitla Software, adding it to its existing portfolio companies such as GoFro, HolidayIQ, Inspirock, ixigo.com, Simplotel, and Mygola.com.
- After its merger with Ibibo, the company has been spending significantly on customer inducement and acquisition
The country’s overall travel market is estimated to become a $48 Bn industry within the next three years, according to a June 2017 Google India-BCG report.
A report by Praxis Global said that online travel market in India, led by flight and hotel aggregators, is expected to touch $13.6 Bn by 2021, and will account for almost 43% of the total travel category in the country.