Top News

MakeMyTrip revenues grow by 40.5% to $23.82 million during 2Q 2010-11

Online travel company MakeMyTrip.com, which completed its initial public offering (IPO) on August 17, 2010, has reported a net loss of $1.8 million for the second quarter ended September 30, 2010, as compared to a net profit of $19,100 [$0.02 million] posted for the corresponding quarter of the previous fiscal year. Total revenues increased by 40.5 per cent to $23.82 million during September 2010 ended quarter from $16.96 million posted for the second quarter of the previous fiscal year.

Online travel company MakeMyTrip.com, which completed its initial public offering (IPO) on August 17, 2010, has reported a net loss of $1.8 million for the second quarter ended September 30, 2010, as compared to a net profit of $19,100 [$0.02 million] posted for the corresponding quarter of the previous fiscal year. Total revenues increased by 40.5 per cent to $23.82 million during September 2010 ended quarter from $16.96 million posted for the second quarter of the previous fiscal year.

According to MakeMyTrip, the loss in the current quarter was mainly as a result of interest accrued on the liability portion of preference shares, one time charges related to its initial public offering listing expenses of $2.1 million, employee share-based compensation costs and increase of 12.3 million shares primarily from conversion of all outstanding preferred shares prior to its initial public offering and share option exercise by certain selling shareholders at the time of the offering.

Deep Kalra, founder, chairman and CEO, MakeMyTrip, has said, “We believe MakeMyTrip is well positioned to capture the long term growth in travel services that comes with the growing Indian economy and its middle class. The expected roll out of broadband internet services throughout the country will only continue to drive the popularity of ecommerce which will benefit online travel companies like MakeMyTrip for many years to come.”

MakeMyTrip reports that gross bookings for air ticketing, hotels and packages combined increased by 48.8 per cent from $104 million reported for the September 2009 ended quarter to $156 million posted for the second quarter ended September 2010. During the second quarter of the current fiscal year, the company’s net revenue margin for air ticketing was 7.4 per cent and for hotels and packages net revenue margin was 11.9 per cent.

Revenue from MakeMyTrip’s air ticketing business increased by 40 per cent from $7.3 million reported for the September 30, 2009 ended quarter to $10.3 million posted for the September 30, 2010 ended quarter. Revenue from hotels and packages business increased by 39 per cent from $9.4 million to $13 million. Other revenue increased by 118 per cent from $0.2 million to $0.5 million, primarily due to increase in sale of rail tickets.

According to MakeMyTrip, its air ticketing net revenue margin in the second quarter of the current fiscal year improved by 60 basis points from 6.8 per cent in the previous quarter as the company’s air bookings increased quarter to quarter, resulting from volume-related incentives from airlines, and increases in service fees and global distribution fees collected. Hotels and packages net revenue margins remained unchanged at 11.9 per cent quarter to quarter.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close