MakeMyTrip's hotels and packages business revenue now contributes about 82% of the company's revenue.
Revenue from the hotel and packages (H & P) business in the quarter ending June 2014 (without service costs) was $77.3 million, an increase of 27% compared to revenue ($61 million) over the same period in 2013.
The Indian OTA has stated its focus on the H & P as a core element of the business. Contribution is growing quarter on quarter, with the company reporting a $43.1 million revenue in Q4 2014.
Chairman and group CEO, Deep Kalra, says:
"The various investments made in the past fiscal year helped us to accelerate growth in the seasonally high travel quarter, particularly in the hotels & packages business.
"We are therefore reinforcing investments to ensure MakeMyTrip’s customers continue to have the best possible experience."
In February 2014, MakeMyTrip acquired EasyToBook, an European hotel booking website. MakeMyTrip attributed the growth in H & P business to this acquisition.
A total of 376,000 transactions for H & P business was recorded during this quarter, an increase of 106% compared (182,000 transactions) to the same quarter last year.
The total revenue for Q1 2015 was reported as $94.8 million, an increase of about 23% ($77.2 million) compared to the the quarter ending June 2013. However, net loss for the quarter was $4 million, down slightly on the $9.1 million for the same quarter last year.
Other financial updates for Q1 2015
- Air ticketing revenue for the quarter was $16.5 million, an increase of 8.3% compared to the same quarter last year.
- Other operating expenses for the quarter was $26.3 million, an increase of 28.5% compared to the same quarter last year. The reason for this increase was attributed to an increase in advertisement expenses for H & P business, increase in payment gateway charges, outsourcing fees, and the consolidation of the EasyToBook acquisition.
- Cash and cash equivalents at end of this period stood at $39 million.
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