India’s leading online travel agency MakeMyTrip has registered a strong growth in revenues, at the same time shrinking its costs. The growth is attributed to the key businesses like air ticketing and hotels and packages business.
The company saw its adjusted revenues grow to $160.1 million, in the quarter ended in September, witnessing a rise of 25.6% from previous year’s $139.2 million, according to the company filings.
In its Earnings release, MakeMyTrip emphasised that the Effective April 1, 2018, it has adopted the new revenue recognition standard, “IFRS 15 wherein promotion expenses in the nature of customer inducement/acquisition costs for acquiring customers and promoting transactions across various booking platforms such as upfront cash incentives and select loyalty programs cost, which when incurred were previously recorded as marketing and sales promotion costs, are now being recorded as a reduction of revenue.”
The NASDAQ-listed company further reduced its adjusted operating loss to $25.37 million from $32.79 million. Also, adjusted net loss, which takes into account share-based compensation costs of employees, income tax, among others factors, reduced to $32.39 million, from $45.18 million.
MakeMyTrip increased its bookings by 26.9% YoY, reaching $1.2 billion.
Deep Kalra, Group Chairman and Group CEO said, “The MakeMyTrip Group continued to improve upon its strong operating and financial performance during the quarter by continuing to build efficiencies in our operating costs while maintaining healthy growth.”
MakeMyTrip’s air ticketing business saw its adjusted revenues grow by around 31% from $47.1 million, to reach $56.5 million. While hotels and packages business contributed the most to the revenues growing at around 18% to reach $85.5 million.
While saving on costs, overall marketing and sales promotion expenses decreased by 61.4% to $44.8 Million.
MakeMyTrip has continued to expand and offer new services to its customers. Earlier this month, it was reported that MakeMyTrip launched a range of standalone and curated experiential offering for travellers, marking its foray into experiences domain.
Earlier in July, MakeMyTrip invested in SaaS-based travel solutions provider Bitla Software, to expand its suite of travel focused technology products for customers.
While in August, the Indian arm of the travel company received ₹69 crores from its Mauritius-based parent.
Other players competing with MakeMyTrip in the travel domain include Yatra, Cleartrip, and TravelTriangle, among others.