Online travel agent MakeMyTrip reported a net loss of $ 9.1 million for the quarter ending June 30, 2013 (Q1-FY14), as compared to a $1.81 million profit reported in the corresponding quarter last year. This was on a Net Revenues (Revenue less service costs) of $26.01 million, up 8.9% from $23.88 million revenues in the same quarter last year. This is the third straight loss making quarter for MakeMyTrip.
The company says that excluding the effects of employee share-based compensation costs, merger and acquisitions related expenses, amortization of acquisition related intangibles, net change in fair value of financial liability in business combination, net loss on change in the fair value of derivative financial instruments and income tax benefit for the first quarter of both fiscal years 2014 and 2013 and the direct cost related to share registration by the shareholders in the quarter ended June 30, 2013, it would have registered a net loss (rather, Adjusted Net Loss) of $5.1 million for the quarter, as compared with a net profit (Adjusted Net Profit) of $1.8 million for the same quarter last fiscal.
Meanwhile, it also announced promotion of Rajesh Magow, one of the co-founders of the company, as Chief Executive Officer-India. MakeMyTrip founder Deep Kalra will remain Chairman & Group CEO and lead the company's strategic developments and overall execution excellence, the company said in a statement.
Magow held the post of Chief Financial Officer since 2005. More recently, he had assumed additional responsibilities as Chief Operating Officer, providing strategic and operational leadership to support all business functions within the company. Company also announced promotion of Mohit Kabra as Chief Financial Officer. Kabra was senior vice president of Finance, Administration and Legal.
Air Ticketing Revenues Decline: Earnings were pulled by a decline in net revenue from Air Ticketing, which was down 8.5% YoY to $14.25 million from $15.58 million in Q1-FY13. This was despite a 17% increase YoY in gross bookings to $251.1 million for the quarter and a 15.5% increase YoY in transactions to 0.95 million for the quarter.
The net revenue margins declined to 5.7% from 7.3% a year ago, due to the reduction in the base commission from full service airlines to all travel agents. Air Ticketing contributed for 54.8% of MakeMyTrip’s net revenues for the quarter, down from 65.2% in the same quarter last year.
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