Financial Highlights for Fiscal 2014 Third Quarter
Gross Bookings reached $311.3 million in 3Q14, representing a YoY increase of 8.4%. Gross bookings for Hotels and packages increased by 34.0% YoY in 3Q14.
Transactions for Hotels and packages improved by 25.0% YoY in 3Q14.
Revenue rose 22.7% YoY to $70.0 million in 3Q14.
Revenue less service costs increased 42.1% YoY to $28.5 million in 3Q14.
Revenue less service costs for Hotels and packages increased 50.6% YoY and Air Ticketing increased 38.3% YoY for 3Q14. Hotels and packages contribution increased to 37.2% in 3Q14 versus 35.1% in 3Q13.
Gurgaon, India and New York, January 30, 2014 — MakeMyTrip Limited, India’s leading online travel company, today announced its unaudited financial and operating results for its third fiscal quarter ended December 31, 2013.
“MakeMyTrip further consolidated its position in the market place with strong revenue growth and adjusted operating profit in a difficult business environment of high fares and rupee depreciation” said Deep Kalra, Chairman and Group CEO.
Fiscal 2014 Third Quarter Financial Results
Revenue. We generated revenue of $70.0 million in the quarter ended December 31, 2013, an increase of 9.6% (22.7% in constant currency) over revenue of $63.8 million in the quarter ended December 31, 2012.
Air Ticketing. Revenue from our air ticketing business increased by 31.2% (49.2% in constant currency) to $18.8 million in the quarter ended December 31, 2013 from $14.3 million in the quarter ended December 31, 2012. Our revenue less service costs increased by 21.6% (38.3% in constant currency) to $16.5 million in the quarter ended December 31, 2013 from $13.5 million in the quarter ended December 31, 2012. This was largely due to an increase in net revenue margin (defined as revenue less service cost as a percentage of gross bookings) from 5.3% in the quarter ended December 31, 2012 to 7.3% in the quarter ended December 31, 2013. The net revenue margin in this quarter is in line with the net revenue margin of 7.0% reported in the previous quarter of current fiscal year.
Hotels and Packages. Revenue from our hotels and packages business increased by 3.2% (14.9% in constant currency) to $50.1 million in the quarter ended December 31, 2013, up from $48.6 million in the quarter ended December 31, 2012. Our revenue less service costs increased by 40.1% (50.6% in constant currency) to $11.0 million in the quarter ended December 31, 2013 from $7.8 million in the quarter ended December 31, 2012. This was attributed to an increase in gross bookings by 22.8% (34.0% in constant currency) primarily due to a 25.0% increase in the number of transactions year over year and net revenue margin expansion from 11.1% in the quarter ended December 31, 2012 to 12.6% in the quarter ended December 31, 2013, in line with the net revenue margin of 12.9% reported in the previous quarter of current fiscal year.
Other Revenue. Our other revenue increased to $1.1 million in the quarter ended December 31, 2013 from $1.0 million in the quarter ended December 31, 2012, primarily due to an increase in facilitation fees from travel insurance sales.
Total Revenue less Service Costs. Our total revenue less service costs increased by 27.7% (42.1% in constant currency) to $28.5 million in the quarter ended December 31, 2013 from $22.4 million in the quarter ended December 31, 2012 primarily as a result of a 40.1% (50.6% in constant currency) increase in our hotels and packages revenue less service costs and a 21.6% (38.3% in constant currency) increase in our air ticketing revenue less service costs.
Results from Operating Activities. As a result of the foregoing factors, our results from operating activities was a loss of $1.2 million in the quarter ended December 31, 2013 as compared to a loss of $6.1 million in the quarter ended December 31, 2012. Excluding the effects of our employee share-based compensation costs, amortization of acquisition related intangibles and merger and acquisitions related expenses for
both quarters ended December 31, 2013 and 2012, we would have recorded an operating profit of $1.4 million in the quarter ended December 31, 2013 as compared with an operating loss of $2.2 million in the quarter ended December 31, 2012.
Profit (Loss) for the period. As a result of the foregoing factors, our loss for the quarter ended December 31, 2013 was $1.6 million as compared to a loss of $5.2 million in the quarter ended December 31, 2012. Excluding the effects of employee share-based compensation costs, amortization of acquisition related intangibles, merger and acquisitions related expenses, net change in fair value of financial liability related to business combination and income tax benefit (expense) for the third quarter of both fiscal years 2014 and 2013 and net (gain) loss on change in the fair value of derivative financial instruments in the quarter ended December 31, 2012, we would have recorded a net profit of $1.2 million in the quarter ended December 31, 2013 and a net loss of $2.6 million in the quarter ended December 31, 2012.
Diluted Earnings (Loss) per share. Diluted loss per share was $0.04 for the quarter ended December 31, 2013 as compared to diluted loss per share of $0.14 in the quarter ended December 31, 2012. After adjusting for employee share-based compensation costs, amortization of acquisition related intangibles, merger and acquisitions related expenses, net change in fair value of financial liability related to business combination and income tax benefit (expense) for the third quarter of both fiscal years 2014 and 2013 and net (gain) loss on change in the fair value of derivative financial instruments in the quarter ended December 31, 2012, as mentioned in the preceding paragraph, diluted earnings
per share would have been $0.03 in the quarter ended December 31, 2013, compared to diluted loss per share of $0.07 in the quarter ended December 31, 2012.
Fiscal Year 2013-14 Outlook
We remain watchful of the persistent volatility in the rupee to dollar exchange rate and an unpredictable domestic airfare environment in the coming quarters. However, the achieved results in the third quarter of fiscal year 2014 give us confidence to improve our annual constant currency growth guidance to 24%-25% for revenue less service costs, which is $99 million to $100 million for the full fiscal year, at an estimated exchange rate of 60.39 INR per dollar.
