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MakeMyTrip acquires 100% stake in HotelTravel.com; posts revenue of $45.7 mn in Q2 FY13

Nasdaq listed online travel company MakeMyTrip.com has said that its revenue rose 25.8% year over year (yoy) to $45.7 million in Q2
FY13 versus $43.8 million in Q2 FY12. The company has also announced the complete

Nasdaq listed online travel company MakeMyTrip.com has said that its revenue rose 25.8% year over year (yoy) to $45.7 million in Q2
FY13 versus $43.8 million in Q2 FY12. The company has also announced the complete
stake acquisition of ‘Hotel Travel Group’ (HT Group), which operates the
website HotelTravel.com in Thailand, Singapore and Malaysia.

“The total consideration payable to the
Promoters of the HT Group by MakeMyTrip for acquiring the HT Group is USD 25
million, of which USD 15 million was paid partly in cash and partly in the form
of MakeMyTrip shares in the first Closing that occurred on November 6, 2012.
The balance USD 10 million is agreed to be paid in the form of MakeMyTrip
shares, in 3 annual tranches through March 2016. Two of the Promoters of the HT
Group will continue in employment with the HT Group in key capacities, and will
be eligible for additional earn outs and incentives for the next 3 – 4 years
based on HT Group meeting certain revenue and EBIDTA targets,” the company has
said in a statement.

Q2
FY13 Revenue Breakup

Revenue from air ticketing business
decreased by 19.6% to $15.3 million in the quarter ended September 30, 2012
from $19.0 million in the quarter ended September 30, 2011. Revenue from hotels
and packages business increased by 24.3% to $29.6 million in the quarter ended
September 30, 2012 from $23.8 million in the quarter ended September 30, 2011.

Other revenue decreased to $0.7 million in
the quarter ended September 30, 2012 from $0.9 million in the quarter ended
September 30, 2011, primarily due to decrease in sale of rail tickets. Total
revenue less service costs decreased by 5.5% to $20.2 million in the quarter
ended September 30, 2012 from $21.3 million in the quarter ended September 30,
2011.

“MakeMyTrip was faced with
increasingly difficult operating conditions as the health of our domestic
airline industry remain uncertain.” said Deep Kalra, Chairman and CEO, adding,
“However, we are confident and optimistic of our vision and investments in
changing the way Indians book their hotels and holidays in the future, as this
segment of the travel market remains largely underpenetrated online today.”

The company has also appointed Rajesh Magow,
Co-founder and Group Chief Financial and Operating Officer and Keyur Joshi,
Co-Founder and Group Chief Commercial Officer, as directors of the company
effective November 6, 2012. With their appointment, the Company has a total of
11 directors on its Board of Directors.

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