MakeMyTrip Limited announces fiscal 2015 first quarter results
Gurgaon, India and New York, July 30, 2015 — MakeMyTrip Limited (Nasdaq: MMYT), India’s leading online travel company, today announced its unaudited financial and operating results for its fiscal quarter ended June 30, 2015.
Financial Highlights for Fiscal 2015 First Quarter
• Revenue less service costs increased 14.7% YoY to $38.1 million in 1Q16. Hotels and packages contribution increased to 48.5% in 1Q16 versus 45.2% in 4Q15.
• Gross Bookings reached $467.9 million in 1Q16, representing a YoY increase of 15.6% and a QoQ increase of 17.7%.
• Transactions for Hotels and packages increased by 14.4% YoY in 1Q16. Hotels and packages (excluding ETB) transactions increased by 27.6% YoY in 1Q16.
• Transactions for MMT India Standalone Hotels booked Online increased by 78.1% YoY and MMT India Standalone Hotels booked on Mobile increased by 216.1% YoY in 1Q16.
• Transactions for air ticketing grew by 45.6% YoY in 1Q16.
“As we begin the new fiscal 2015, we believe we are on the cusp of a second wave of internet penetration driven by unprecedented smartphone penetration which is helping drive online booking behavior in the strategic India standalone hotels segment. We were able to leverage our investments on the mobile channel and in the hotels segment to drive 78% transaction growth in India standalone online hotels fueled by over 200% growth on transactions coming from mobile channel during this quarter” said Deep Kalra, Group Chairman and Group CEO. “This makes us believe that it’s the right time for us to single mindedly focus on accelerating transaction growth in the Hotels and Packages business to grow our market share in this strategic segment with a view of consolidating long term market leadership in the OTA space.”
Fiscal 2015 First Quarter Financial Results
Revenue. We generated revenue of $93.7 million in the quarter ended June 30, 2015, decrease of 1.2% (an increase of 5.2% in constant currency) over revenue of $94.8 million in the quarter ended June 30, 2014.
Air Ticketing. Revenue from our air ticketing business increased by 20.0% (27.3% in constant currency) to $19.8 million in the quarter ended June 30, 2015 from $16.5 million in the quarter ended June 30, 2014.
Hotels and Packages. Our revenue from our hotels and packages business decreased by 6.3% (0.01% in constant currency) to $72.4 million in the quarter ended June 30, 2015, from $77.3 million in the quarter ended June 30, 2014.
Other Revenue. Our other revenue increased to $1.5 million in the quarter ended June 30, 2015 from $1.1 million in the quarter ended June 30, 2014.
Total Revenue less Service Costs. Our total revenue less service costs increased by 7.5% (14.7% in constant currency) to $38.1 million in the quarter ended June 30, 2015 from $35.5 million in the quarter ended June 30, 2014.
Fiscal Year 2015-16 Outlook
We believe growing mobile penetration among internet users, increasing online shift in the predominantly offline domestic hotels segment and our balance sheet strength provide us a unique opportunity at this stage to accelerate market share growth in the Hotels and Packages segment to further strengthen our leadership position in the key Indian hotels market. We expect this would entail additional marketing investments and pricing tradeoffs for aggressive acquisition of hotel customers. This combined with margin pressure in Air ticketing business could lead to modest year on year net revenue growth.
We hereby initiate our new year on year transactions based growth guidance for the rest of fiscal year 2016 as follows:
• Hotel and Packages transactions growth (excluding ETB) of 50% to 55%;
• India standalone online hotel transactions growth of 75% to 100%.
• Net Revenue growth in constant currency is being revised at 10% to 15% for the fiscal year 2016.