Despite disruptions in India’s travel industry, MakeMyTrip reported a 13.6% year-over-year increase in adjusted revenue to $181.1 million for the second quarter of 2020, beating analyst expectations by $1.09 million.
During the quarter, gross bookings grew 20.6% year-over-year to $1.5 billion.
The company also decreased marketing and sales promotion expenses by 10.5% to $40.1 million.
As a result of the increase in revenue and the decrease in promotion expenses, MakeMyTrip diminished its adjusted operating loss by $6.1 million year-over-year to $19.3 million.
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“While the operating environment remains less than ideal today, we believe that clearer skies are ahead of us in the mid- to long-term,” says Deep Kalra, group chairman and group CEO.
“In the meantime, we continue to stay focused on executing on all fronts of our business to improve the customer experience and to deliver greater value to our supply side partners and gain greater market share across all of our travel segments.”
In a call to discuss earnings, Kalra says that the live-to-date customer base grew by 25% to 44 million and attributed the growth to MakeMyTrip’s loyalty programs.
There are currently 2.2 million Gold Rewards members, 1.1 million MMT Black members and 124,000 MMT Double Black members.
“We believe our loyalty programs are giving us the desired results and we continue to invest in these programs to drive greater engagement and volume share.”
Adjusted revenue for air tickets grew more than 16.7% to $65.9 million and gross bookings increased by 22.4% to $916 million.
The company attributes the growth in bookings to an uptick in its outbound air ticketing business, which has thrived despite recent complications in India’s airline sector.
In April, Jet Airways grounded all flights due to a lack of funding.
Says Kalra: “We anticipate that the loss of capacity due to Jet Airway’s grounding has largely been restored for the domestic market and is likely to be restored on international routes by the end of this calendar year.
“Despite a lower growth in the air domestic market, our performance in the first half of the year continued to outpace the market significantly, resulting in continued share gain.”
MakeMyTrip’s bus ticketing operations continued its stellar year by reporting a 37.4% increase in adjusted revenue to $16.6 million and a 33.4% increase in gross bookings to $192 million.
Adjusted revenue for hotels and packages grew by 1.9% to $87 million, including a 9.6% increase in gross bookings to $383 million.
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