Online travel portal MakeMyTrip (MMYT) reported a 135% increase in net revenue to around $141.2 Mn in Q1 of 2017, despite soaring losses due to increased expenses. Overall revenue has grown by around 55% to $192.1 Mn, compared to the same quarter last year.
In the first quarter, MakeMyTrip’s net revenue from hotels and tourism packages stood at $134.6 Mn; a 40.8% spike from Q1 2016. In Q1 2017, the company raked more than $41.3 Mn through its air ticketing business. This segment witnessed around 73% growth compared to the same quarter last year.
According to the latest SEC filings, the NASDAQ-listed company posted net losses of over $52.1 Mn in the first-quarter ending on June 30, 2017. This marked a near-72% jump from $30.3 Mn in the same quarter last year.
Increased expenses are one of the main reasons the Gurugram-headquartered company has been incurring massive losses. In the first quarter of this year, marketing and sales promotion-related spendings of MakeMyTrip surged from $52.7 Mn to over $133 Mn.
Commenting on the company’s promotion-driven growth strategy, MakeMyTrip CFO Mohit Kabra added, “We will continue to drive new customer acquisition in a significant manner, and therefore, continue to invest behind (sic) marketing and promotions at least right through this fiscal. We will continue with our high-spend strategy so that the market share gains continue to be there.”
The amount also includes the brand advertisement and customer inducement expenses of Ibibo Group, which was acquired by MakeMyTrip in October 2016.