MakeMyTrip posts stellar report card

INDIA-based OTA MakeMyTrip reported strong financial and operating performance for its fiscal quarter ended June 30, 2011, with stellar results in particular from its air ticketing and hotels & packages segments.

The OTA’s gross bookings for air ticketing and hotels & packages increased by US$89.5 million to US$264.1 million, a 51.2 per cent year-on-year jump. The number of transactions for the same segments increased 54.4 per cent year-on-year.

Deep Kalra, MakeMyTrip chairman and CEO, said: “Our strategic marketing investment this quarter has resulted in very robust growth in transactions and expansion of margins in our hotels & packages business, as we worked to further differentiate ourselves from our competitors.”

Group revenue rose 54.3 per cent year-on-year to US$52 million, while revenue less service costs increased 52.3 per cent year-on-year to US$21.1 million. Net revenue margin for air ticketing and hotels & packages increased to 7.7 per cent year-on-year.

Profits from operating activities improved year-on-year to US$1.8 million, an increase of US$0.5 million over the previous year’s fiscal first quarter. Adjusted operating profit improved to US$1.6 million, versus US$1.4 million previously.

Profit for the period was US$0.8 million, versus US$1.3 million in the previous year’s fiscal first quarter. Adjusted net income was US$1.5 million versus US$1.7 million previously.

Meanwhile, MakeMyTrip entered into a share purchase agreement in July to acquire 19.9 per cent of Gurgaon-based Le Travenues Technology, which owns and operates, an online travel metasearch engine.

The OTA will pay US$4.8 million for the purchase of new and existing shares, while SAIF, MakeMyTrip’s largest shareholder, will acquire 56.7 per cent of Le Travenues for US$13.7 million.

MakeMyTrip is expecting to complete the deal this month.

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