MakeMyTrip Q1 revenue up 25%, loss shrinks on cost controls

MakeMyTrip Ltd, the country's largest online travel services provider, reported higher revenue for the first quarter of financial year 2018-19 thanks to growth in all its key businesses and narrowed its loss after curbing expenses.

Adjusted revenue for the quarter ended June surged 25% in constant currency terms to $170.1 million from $141.2 million a year earlier, the NASDAQ-listed company said in a filing with the US Securities and Exchange Commission.

Adjusted operating loss narrowed to $32.79 million from $52.33 million. Adjusted net loss, which takes into account share-based compensation costs of employees and income tax among other things, shrank to $38.2 million from $52.1 million.

“The strong financial performance during the quarter reflects our success in the ongoing pursuit of high business growth with continued cost optimization,” said Deep Kalra, group chairman and group chief executive officer at MakeMyTrip.

“By leveraging our multiple brands and introducing relevant product and technology innovations, we have been able to achieve greater loyalty from existing customers as well as welcome many first time internet users onto our booking platforms across India,” he added.

MakeMyTrip’s adjusted revenue from its air ticketing business increased almost 24% in constant currency to $54.4 million. Adjusted revenue from the hotels and packages business--the company's biggest--rose by a fifth to $93.8 million.

The company also began reporting revenue from its bus ticketing segment; until now this business was clubbed with other smaller businesses. Adjusted revenue from bus ticketing grew nearly 49% to a tad above $16 million.

MakeMyTrip, which competes with the likes of Yatra and Cleartrip, said it has adopted a new method to calculate revenue whereby it will deduct upfront certain customer acquisition costs and other marketing and promotional expenses.

Overall marketing and sales promotion expenses rose 4.6% from a year earlier to $149 million, after accounting for the costs recorded as a reduction in revenue.

The company's staff costs fell 9.6% to $27 million but other operating expenses rose 11.4% to $33 million.