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Wednesday, 31 July, 2019, 14 : 00 PM [IST]

MakeMyTrip narrows operating losses after growth across air, hotels and bus divisions

MakeMyTrip has narrowed its adjusted operating loss for the first quarter of 2020 by USD 3.6 million to USD 29.2 million.

The Gurugram, India-based company reported gross bookings up 24% to USD 1.7 billion for the quarter ended June 30, 2019, and adjusted revenue up 21% to USD 198.5 million.

Group chairman and chief executive Deep Kalra hails “strong business growth” in the “peak travel quarter” despite softer domestic demand.

MakeMyTrip’s adjusted revenue growth for the quarter is attributed to a 19.6% increase to adjusted revenue of $65 million in air ticketing and an 8% increase to USD 101.4 million in adjusted revenue for hotels and packages.


Revenue from bus ticketing increased by a third to USD 21.4 million.
The online travel agency’s adjusted revenue takes into account promotion expenses of USD 105.3 million for the quarter, up from USD 92.4 million for the same period in 2019.

Adjusted revenue also includes promotion expenses of USD 105.3 million in the quarter ended June 30, 2019, and USD 92.4 million in the quarter ended June 30, 2018, recorded as a reduction of revenue. 

These expenses are recorded as a revenue reduction under IFRS regulations.

Back in April, Ctrip gained a 49% stake in MakeMyTrip in a deal which saw the China-based OTA give up almost 6% of its shares. 

Kalra highlighted the company's business travel strategy, revealing the pilot during the quarter of an "online end-to-end enterprise grade solution" for large corporates.

The pilot follows MMT's acquisition of Quest2Travel in May, which marked its entrance into the corporate travel space. The company says it has signed up several large corporates in India to use the technology.

A further highlight is the launch of rPool, a car-pooling application by bus ticketing brand RedBus, to help daily commuters and ease urban congestion.

Overall the company says it is confident about the "long-term growth opportunities" with India's increasing internet penetration, developing digital and payments ecosystem and young population all helping to drive consumers to online platforms.


 
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