Financial Highlights for Fiscal 2014 Second Quarter
(Year over Year (YoY) growth % are on constant currency basis(1); please see table below for YoY growth % on actual basis)
• Gross Bookings reached $272.6 million in 2Q14, representing a YoY increase of 17.9%. Gross bookings for Hotels and packages increased by 55.3% YoY in 2Q14.
• Transactions for Hotels and packages improved by 58.5% YoY in 2Q14. Transactions for air ticketing grew by 24.7% YoY in 2Q14.
• Revenue rose 18.8% YoY to $47.4 million in 2Q14.
• Revenue less service costs increased 29.3% YoY to $23.3 million in 2Q14.
• Revenue less service costs for Hotels and packages increased 58.2% YoY for 2Q14. Hotels and packages contribution increased to 30.0% in 2Q14 versus 24.5% in 2Q13.
Gurgaon, India and New York, October 31, 2013 — MakeMyTrip Limited (Nasdaq: MMYT), India’s leading online travel company, today announced its unaudited financial and operating results for its second fiscal quarter ended September 30, 2013.
“Our undeniable market leadership and superior brand recognition continues to drive MakeMyTrip to outpace overall market growth in a volatile travel environment, while making advancements in growing market share in the hotels and packages business.” said Deep Kalra, Chairman and Group CEO.
Fiscal 2014 Second Quarter Financial Results
Revenue. We generated revenue of $47.4 million in the quarter ended September 30, 2013, an increase of 3.8% (18.8% in constant currency) over revenue of $45.7 million in the quarter ended September 30, 2012.
Air Ticketing. Revenue from our air ticketing business increased by 5.6% (18.8% in constant currency) to $16.2 million in the quarter ended September 30, 2013 from $15.3 million in the quarter ended September 30, 2012. Our revenue less service costs increased by 5.1% (18.2% in constant currency) to $15.2 million in the quarter ended September 30, 2013 from $14.5 million in the quarter ended September 30, 2012. The increase in revenue less service costs was contributed by a 24.7% increase in transactions due to lower airfares in the quarter ended September 30, 2013, while average transaction value declined by 21.5% year on year. Our net revenue margin percentage (defined as revenue less service cost as a percentage of gross bookings) increased to 7.0% from 6.5% a year ago largely due to decline in average transaction value.
Hotels and Packages. Revenue from our hotels and packages business increased by 2.0% (18.0% in constant currency) to $30.2 million in the quarter ended September 30, 2013 from $29.6 million in the quarter ended September 30, 2012. Our revenue less service costs increased by 43.4% (58.2% in constant currency) to $7.1 million from $4.9 million in the quarter ended September 30, 2012. This was attributed to an increase in gross bookings by 39.2% (55.3% in constant currency) primarily due to a 58.5% increase in the number of transactions year on year. This was largely driven by the growth in our international hotel bookings aided by our acquisition of Hotel Travel Group in the quarter ended December 31, 2012.
Other Revenue. Our other revenue increased to $1.0 million in the quarter ended September 30, 2013 from $0.7 million in the quarter ended September 30, 2012, primarily due to an increase in facilitation fees on travel insurance.
Total Revenue less Service Costs. Our total revenue less service costs increased by 15.6% (29.3% in constant currency) to $23.3 million in the quarter ended September 30, 2013 from $20.2 million in the quarter ended September 30, 2012 primarily as a result of an increase of 43.4% (58.2% in constant currency) in our hotels and packages revenue less service costs and 5.1% (18.2% in constant currency) increase in our air ticketing revenue less service costs.
Personnel Expenses. Personnel expenses increased to $10.7 million in the quarter ended September 30, 2013 from $7.5 million in the quarter ended September 30, 2012, mainly due to consolidation of personnel expenses from acquisitions in the quarter ended December 31, 2012, annual wages increments and restricted stock units granted to the employees in the current quarter. Excluding employee share-based compensation costs, personnel expenses have increased 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 15.7% to $17.2 million in the quarter ended September 30, 2013 from $14.9 million in the quarter ended September 30, 2012, primarily as a result of an increase in advertisement expenses and payment gateway charges 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 $5.9 million in the quarter ended September 30, 2013 as compared to a loss of $3.0 million in the quarter ended September 30, 2012. Excluding the effects of our employee share-based compensation costs and amortization of acquisition related intangibles for both quarters ended September 30, 2013 and 2012 and merger and acquisitions related expenses for the quarter ended September 30, 2012, we would have recorded an operating loss of $1.5 million in the quarter ended September 30, 2013 compared with an operating profit of $0.06 million in the quarter ended September 30, 2012.
Net Finance Income (costs). Our net finance cost was $1.6 million in the quarter ended September 30, 2013 as against net finance income of $1.4 million in the quarter ended September 30, 2012. This was mainly due to higher foreign exchange loss in the quarter ended September 30, 2013.
Profit (Loss) for the period. As a result of the foregoing factors, our loss for the quarter ended September 30, 2013 was $7.5 million as compared to a loss of $1.2 million in the quarter ended September 30, 2012. Excluding the effects of employee share-based compensation costs, amortization of acquisition related intangibles, net change in fair value of financial liability related to business combination and income tax benefit (expense) for the second quarter of both fiscal years 2014 and 2013 and merger and acquisitions related expenses and net loss on change in the fair value of derivative financial instruments in the quarter ended September 30, 2012, we would have recorded a net loss of $2.9 million in the quarter ended September 30, 2013 and a net profit of $1.2 million in the quarter ended September 30, 2012.
Diluted Earnings (Loss) per share. Diluted loss per share was $0.20 for the quarter ended September 30, 2013 as compared to diluted loss per share of $0.03 in the quarter ended September 30, 2012. After adjusting for employee share-based compensation costs, amortization of acquisition related intangibles, net change in fair value of financial liability related to business combination and income tax benefit (expense) for the second quarter of both fiscal years 2014 and 2013 and merger and acquisitions related expenses and net loss on change in the fair value of derivative financial instruments in the quarter ended September 30, 2012, as mentioned in the preceding paragraph, diluted loss per share would have been $0.08 in the quarter ended September 30, 2013, compared to diluted earnings per share of $0.03 in the quarter ended September 30, 2012.
Fiscal Year 2013-14 Outlook
While we are encouraged by the performance in second quarter of fiscal year 2014, we continue to remain cautious in the near term due to volatility in the rupee and domestic air fares. We would therefore like to maintain our annual constant currency growth guidance of 15%-20% for revenue less service costs. As the rupee to dollar exchange rate depreciated further from last guidance rate of 58.79 to current estimated full year rate of 60.12 per dollar, we are revising the dollar guidance range purely on account of changes in translation rate to $93 million to $97 million.
