Financial Highlights for Fiscal 2013 First Quarter
(YoY growth % are on constant currency basis; please see table below for YoY growth % on actual basis)
• Revenue rose 47.9% year over year (yoy) to $64.1 million in 1Q13 versus $52.0 million in 1Q12.
• Revenue less service costs increased 35.8% yoy to $23.9 million in 1Q13 versus $21.1 million in 1Q12.
• Net revenue margin for Air ticketing and Hotels and packages combined increased to 8.4% in 1Q13 versus 7.7% in 1Q12.
• Adjusted operating profit improved to $2.5 million in 1Q13 versus $1.6 million in 1Q12.
• Adjusted net income was $1.8 million in 1Q13 versus $1.5 million in 1Q12.
• Adjusted diluted earnings per share for 1Q13 was $0.05 versus $0.04 in 1Q12.
GURGAON, India and NEW YORK, Aug. 6, 2012 (GLOBE NEWSWIRE) -- MakeMyTrip Limited (Nasdaq:MMYT), India's leading online travel company, today announced its unaudited financial and operating results for its first fiscal quarter ended June 30, 2012.
"MakeMyTrip delivered strong financial results in the first fiscal quarter despite an increasingly challenging operating environment." said Deep Kalra, Chairman and CEO. "We were able to deliver net revenue growth in line with our guidance by continuously enhancing our customers experience and executing on expanding our Hotels & packages business."
Recent Developments
Amendment to the Share Purchase Agreement signed with Luxury Tours & Travel Pte Ltd
In July 2012, the Company entered into an agreement with the remaining shareholders of Luxury Tours & Travel Pte Ltd (LTT) which amended the terms of the original share purchase agreement (SPA) signed in February 2011. As per the amended terms, the Company will purchase the remaining shares held by remaining shareholders (also the original selling shareholders) in LTT by December 31, 2012 at the same price per share as paid for the tranche purchased on the first closing date.
Fiscal 2013 First Quarter Financial Results
Revenue. We generated revenue of $64.1 million in the quarter ended June 30, 2012, an increase of 23.2% (47.9% in constant currency) over revenue of $52.0 million in the quarter ended June 30, 2011.
Air Ticketing. Revenue from our air ticketing business increased by 17.1% (41.8% in constant currency) to $17.2 million in the quarter ended June 30, 2012 from $14.7 million in the quarter ended June 30, 2011. Our revenue less service costs increased by 8.2% (31.0% in constant currency) to $15.6 million in the quarter ended June 30, 2012 from $14.4 million in the quarter ended June 30, 2011. This was due to an increase in net revenue margin from 6.6% in the quarter ended June 30, 2011 to 7.3% in the quarter ended June 30, 2012, increased average transaction values on materially higher airfares and partially offset by a decrease in gross bookings of 1.9% (increase of 18.8% in constant currency) year on year.
Hotels and Packages. Revenue from our hotels and packages business increased by 25.1% (49.6% in constant currency) to $45.8 million in the quarter ended June 30, 2012 from $36.6 million in the quarter ended June 30, 2011. Our revenue less service costs increased by 20.2% (41.4% in constant currency) to $7.1 million in the quarter ended June 30, 2012 from $5.9 million in the quarter ended June 30, 2011. This was due to an increase in gross bookings by 25.4% (50.0% in constant currency), which was partially offset by a reduction in net revenue margin from 13.1% in the quarter ended June 30, 2011 to 12.5% in the quarter ended June 30, 2012.
Other Revenue. Our other revenue increased to $1.2 million in the quarter ended June 30, 2012 from $0.8 million in the quarter ended June 30, 2011, primarily due to an increase in income from advertisements.
Total Revenue less Service Costs. Our total revenue less service costs increased by 13.2% (35.8% in constant currency) to $23.9 million in the quarter ended June 30, 2012 from $21.1 million in the quarter ended June 30, 2011 as a result of a 8.2% (31.0% in constant currency) increase in our air ticketing revenue less service costs, as well as a 20.2% (41.4% in constant currency) increase in our hotels and packages revenue less service costs.
Personnel Expenses. Personnel expenses increased to $7.6 million in the quarter ended June 30, 2012 from $4.3 million in the quarter ended June 30, 2011, mainly as a result of employee share-based compensation costs of $2.7 million in the quarter ended June 30, 2012 as against ($0.14) million in quarter ended June 30, 2011, as well as due to increases in annual wages and average employee headcount year over year in the quarter ended June 30, 2012. Excluding employee share-based compensation costs, personnel expenses as a percentage of net revenue decreased by 33 basis points year over year and 1.2 percentage points over the previous quarter.
Other Operating Expenses. Other operating expenses increased by 8.8% to $15.7 million in the quarter ended June 30, 2012 from $14.5 million in the quarter ended June 30, 2011, primarily as a result of an increase in outsourcing fees and payment gateway charges in line with the growth in our business. Other operating expenses as a percentage of net revenue decreased by 2.7 percentage points year over year to 65.9%.
Results from Operating Activities. As a result of the foregoing factors, our results from operating activities was a loss of $0.2 million in the quarter ended June 30, 2012 from a profit of $1.8 million in the quarter ended June 30, 2011. Excluding the effects of our employee share-based compensation costs for both quarters ended June 30, 2012 and 2011, we would have recorded an operating profit of $2.5 million in the quarter ended June 30, 2012 compared with an operating profit of $1.6 million in the quarter ended June 30, 2011.
Net Finance Costs. Our net finance cost decreased to $0.8 million in the quarter ended June 30, 2012 from a net finance costs of $1.0 million in the quarter ended June 30, 2011, primarily due to costs of $0.9 million for our follow-on public offering in the quarter ended June 30, 2011 as against higher forex loss of $1.3 million in the quarter ended June 30, 2012 offset by higher interest income earned on term deposits with banks.
Profit (Loss) for the Period. As a result of the foregoing factors, including the effects of employee share-based compensation costs, our loss for the quarter ended June 30, 2012 was $0.8 million as compared to a profit of $0.8 million in the quarter ended June 30, 2011. Excluding the effects of employee share-based compensation costs and interest accretion on financial liability related to business combination for the first quarter of both fiscal years 2013 and 2012, costs related to our follow-on public offering in the first quarter of fiscal year 2012 and net loss on change in the fair value of derivative financial instruments in the first quarter of fiscal 2013, we would have recorded a net profit of $1.8 million in the quarter ended June 30, 2012 and a net profit of $1.5 million in the quarter ended June 30, 2011.
Diluted Earnings (Loss) per share. Diluted loss per share was $0.02 for the quarter ended June 30, 2012 as compared to diluted earnings per share of $0.02 in the quarter ended June 30, 2011. After adjusting for employee share-based compensation costs and interest accretion on financial liability related to business combination for the first quarter of both fiscal years 2013 and 2012, costs related to our follow-on public offerings in the first quarter of fiscal year 2012 and net loss on change in the fair value of derivative financial instruments in the first quarter of fiscal 2013 as mentioned in the preceding paragraph, diluted earnings per share were $0.05 in the quarter ended June 30, 2012, compared to diluted earnings per share of $0.04 in the quarter ended June 30, 2011.
Fiscal Year 2012-13 Outlook
The Company is maintaining its fiscal year 2013 Revenue less service costs growth guidance in the range of 30% to 32% on a constant currency basis. This growth guidance is based on average actual Indian Rupee to U.S. Dollar exchange rate of 48.23 for full fiscal year 2012. On a U.S. dollar basis, we are updating our revenue less service cost guidance in the range of $99 million to $102 million solely to reflect the current 2Q13 average exchange rate of INR 55 to a U.S. Dollar. The previously provided guidance range had assumed an average exchange rate of INR 53 to a U.S. Dollar.
