• Gross Bookings reached $335.5 million in 1Q14, representing a YoY increase of 26.5%. Gross bookings for Hotels and packages increased by 51.5% in 1Q14.
• Transactions for Hotels and packages improved by 72.2% YoY in 1Q14. Transactions for air ticketing grew by 15.5% YoY in 1Q14.
• Revenue rose 22.9% YoY to $77.2 million in 1Q14.
• Revenue less service costs increased 11.2% YoY to $26.0 million in 1Q14.
• Revenue less service costs for Hotels and packages increased 55.3% YoY for 1Q14. Hotels and packages contribution increased to 41.5% in 1Q14 versus 29.8% in 1Q13.
Gurgaon, India and New York, August 7, 2013 — 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, 2013.
“We further strengthened the MakeMyTrip brand in the first fiscal quarter by continuing to deliver a superior customer experience.” said Deep Kalra, Chairman and Group CEO, “Our undisputed market leadership has allowed us to deliver strong operating results in a challenging environment, while making great strides in our hotels and packages business.”
Fiscal 2014 First Quarter Financial Results
Revenue. We generated revenue of $77.2 million in the quarter ended June 30, 2013, an increase of 20.3% (22.9% in constant currency) over revenue of $64.1 million in the quarter ended June 30, 2012.
Air Ticketing. Revenue from our air ticketing business decreased by 11.4% (9.2% in constant currency) to $15.2 million in the quarter ended June 30, 2013 from $17.2 million in the quarter ended June 30, 2012. Our revenue less service costs decreased by 8.5% (6.2% in constant currency) to $14.3 million in the quarter ended June 30, 2013 from $15.6 million in the quarter ended June 30, 2012. Gross bookings grew by 17.0% (19.9% in constant currency) year on year mainly due to increase in transactions by 15.5% and further aided by higher airfares in the quarter ended June 30, 2013. The decline in revenue less service costs was mainly due to decrease in our net revenue margin (defined as revenue less service cost as a percentage of gross bookings) to 5.7% from 7.3% a year ago, mainly due to reduction in full service airlines’ base commissions to all travel agents.
Hotels and Packages. Revenue from our hotels and packages business increased by 33.4% (36.1% in constant currency) to $61.0 million in the quarter ended June 30, 2013 from $45.8 million in the quarter ended June 30, 2012. Our revenue less service costs increased by 52.7% (55.3% in constant currency) to $10.9 million from $7.1 million in the quarter ended June 30, 2012. This was due to increase in gross bookings by 48.6% (51.5% in constant currency) primarily due to a 72.2% increase in the number of transactions and increase in net revenue margin from 12.5% in the quarter ended June 30, 2012 to 12.9% in the quarter ended June 30, 2013. Net revenue margin increased over previous quarter margin of 12.3%. The growth in this segment was contributed in part by the acquisition of Hotel Travel Group and ITC Group in the quarter ended December 31, 2012.
Other Revenue. Our other revenue decreased to $0.9 million in the quarter ended June 30, 2013 from $1.2 million in the quarter ended June 30, 2012, primarily due to lower advertisement income on our websites, as we used the website inventory to promote our own product offerings.
Total Revenue less Service Costs. Our total revenue less service costs increased by 8.9% (11.2% in constant currency) to $26.0 million in the quarter ended June 30, 2013 from $23.9 million in the quarter ended June 30, 2012 primarily as a result of an increase of 52.7% (55.3% in constant currency) in our hotels and packages revenue less service costs partially offset by 8.5% (6.2% in constant currency) decrease in our air ticketing revenue less service costs.
Personnel Expenses. Personnel expenses increased to $9.8 million in the quarter ended June 30, 2013 from $7.6 million in the quarter ended June 30, 2012, mainly due to increases in annual wages, growth in employee headcount in hotels and packages business and due to acquisitions in the quarter ended December 31, 2012. Excluding employee share-based compensation costs, personnel expenses as a percentage of net revenue increased by 5.5 percentage points year over year, in line with the growth in our business and from the effects of consolidating the personnel expenses associated with our acquisitions in the quarter ended December 31, 2012.
Other Operating Expenses. Other operating expenses increased by 29.9% to $20.5 million in the quarter ended June 30, 2013 from $15.7 million in the quarter ended June 30, 2012, primarily as a result of an increase in advertisement expenses, payment gateway charges and outsourcing fees and from the effects of consolidating other operating expenses associated with our recent acquisitions.
Results from Operating Activities. As a result of the foregoing factors, our results from operating activities was a loss of $5.4 million in the quarter ended June 30, 2013 as compared to a loss of $0.2 million in the quarter ended June 30, 2012. Excluding the effects of our employee share-based compensation costs and amortization of acquisition related intangibles for both quarters ended June 30, 2013 and 2012 and direct cost related to registration of shares by the shareholders in the quarter ended June 30, 2013, we would have recorded an operating loss of $2.0 million in the quarter ended June 30, 2013 compared with an operating profit of $2.5 million in the quarter ended June 30, 2012.
Net Finance Income (costs). Our net finance cost was $3.5 million in the quarter ended June 30, 2013 as against net finance cost of $0.8 million in the quarter ended June 30, 2012. This was mainly due to higher foreign exchange loss and provisioning of loss on trade and other receivables in the quarter ended June 30, 2013.
Profit (Loss) for the period. As a result of the foregoing factors, including the effects of employee share-based compensation costs, merger and acquisitions related expenses and amortization of acquisition related intangibles, our loss for the quarter ended June 30, 2013 was $9.1 million as compared to a loss of $0.8 million in the quarter ended June 30, 2012. Excluding the effects of employee share-based compensation costs, amortization of acquisition related intangibles, net change in fair value of financial liability in business combination, net loss on change in the fair value of derivative financial instruments and income tax benefit (expense) for the first quarter of both fiscal years 2014 and 2013 and direct cost related to registration of shares by the shareholders in the quarter ended June 30, 2013, we would have recorded a net loss of $5.1 million in the quarter ended June 30, 2013 and a net profit of $1.8 million in the quarter ended June 30, 2012.
Diluted Earnings (Loss) per share. Diluted loss per share was $0.24 for the quarter ended June 30, 2013 as compared to diluted loss per share of $0.02 in the quarter ended June 30, 2012. After adjusting for employee share-based compensation costs, amortization of acquisition related intangibles, net change in fair value of financial liability in business combination, net loss on change in the fair value of derivative financial instruments and income tax benefit (expense) for the first quarter of both fiscal years 2014 and 2013 and direct cost related to registration of shares by the shareholders in the quarter ended June 30, 2013, as mentioned in the preceding paragraph, diluted loss per share was $0.14 in the quarter ended June 30, 2013, compared to diluted earnings per share of $0.05 in the quarter ended June 30, 2012.
Fiscal Year 2013-14 Outlook
In the first quarter of fiscal year 2014, we faced ongoing operating challenges, including a capacity constrained air market, slowing economic growth and increased volatility in the Rupee to US Dollar exchange rate. However, we are reiterating our Fiscal 2014 revenue less service costs growth guidance of 15% to 20% on a constant currency basis, but adjusting the range to approximately $95 million to $100 million to account for the current Rupee exchange rate of 58.79 per US Dollar.
