MakeMyTrip Q4 net revenue jumps 67%, loss narrows

MakeMyTrip Ltd, the country’s largest online travel services provider, posted a rapid rise in net revenue for the fourth quarter of the financial year 2017-18 thanks to its air ticketing business, even as it narrowed its losses.

The company had doubled its revenue but posted losses in the third quarter.

The Nasdaq-listed company's revenue after excluding services costs rose 67% in constant currency terms to $145.31 million for the quarter ended March from $85.1 million a year ago, MakeMyTrip said in a filing with the United States Securities and Exchange Commission (SEC).

The revenue excluding service costs for the air ticketing business surged 77.9% (73.8% in constant currency) to $58.47 million in the final quarter from $32.86 million in the previous fiscal.

With service costs included, MakeMyTrip's consolidated revenue increased 31.5% (27.3% in constant currency) over revenue of $120.03 million in the quarter ended March 31, 2017.

The company's adjusted operating loss narrowed to $23.5 million in constant currency terms in the fourth quarter as against $35.7 million in the year-ago period.

The company’s gross bookings crossed $1 billion in the fourth quarter, driven by a 63% (58.2% in constant currency) increase in air ticketing revenue. The air ticketing flight segment in itself saw a 55.1% year-on year increase, after accounting for the impact of consolidation of the ibibo Group acquired in January last year.

Meanwhile, revenue from hotels and packages increased 18.4% (14.0% in constant currency) to $93.4 million in the quarter ended March 31, 2018, up from $78.9 million in the quarter ended March 31, 2017.

Marketing and sales promotion expenses increased by 19.1% to $93.9 million in the quarter ended March 31, 2018 from $78.8 million in the year-ago period.

Full-year financials
The company's full-year revenue (from operations) in constant currency more than doubled to $577.12 million compared with $273.69 million in the previous year, MMT informed the US SEC.

"In the fiscal year 2018, we successfully integrated two leading online travel brands [Goibibo and Redbus], increased our market leadership and achieved record bookings and net revenue scale while greatly narrowing our operating losses,” said Deep Kalra, group chairman and group chief executive officer of MakeMyTrip.

Full-year loss at an operating level widened to $154.81 million as against $83.71 million for the year ended March 2017.

Marketing and sales promotion expenses increased by 101.3% to $451.8 million for the year compared with $224.4 million in the year before that. 

Expenses arising from the significant customer inducement and acquisition programmes to accelerate growth in the standalone hotel booking business besides the increase in brand advertisement expenses were primary factors resulting in overall increase in the company’s full year marketing and sales promotion expenses, it said.

The company also informed the exchanges that it had repurchased ordinary shares worth $14 million out of the $150 million authorised by the board in January 2016.

The company has time till November 2021 to buy back shares worth $136 million, with per share repurchase price not exceeding $21.5 apiece.

Nasdaq-listed MMT’s shares have risen 16% since 1 January to $34.65 apiece. The stock has more than doubled from the lows in May 2016.

At 10.10pm IST on Wednesday, MakeMyTrip’s shares were quoting at $34.40 apiece, down 1.43% from the close on Tuesday.