MakeMyTrip Turns the Corner, Achieves Profitability After $9 Million Loss
MakeMyTrip Soars with Record Quarterly Earnings Boosted by Leisure Travel Demand
1 February 2023
MakeMyTrip announces record quarterly earnings for the quarter that ended in December 2022.
It was due to increased demand for leisure travel and consumer confidence.
In addition, the business achieved profitability and reported a profit of $0.2 million, up from a net loss of $9 million in the corresponding quarter of the prior fiscal year.
The travel and tourist industry's reputation has been damaged by the pandemic. But now things are different since there is a lot of unmet demand for travel, which is good for the industry's stocks. MakeMyTrip (NASDAQ:MMYT) stock is one of the undervalued jewels. Although the stock has trended up by 27% over the past year, it still seems inexpensive.
On Tuesday, MakeMyTrip, a Nasdaq-listed travel service provider, announced its "highest-ever" quarterly gross bookings and adjusted operating profit for the quarter that ended in December 2022 due to a significant increase in demand for leisure travel and an uptick in consumer confidence. In addition, the business achieved profitability and reported a profit of $0.2 million, up from a net loss of $9 million in the corresponding quarter of the prior fiscal year. The company also reported that gross bookings increased by 64.4% in constant currency year over year to $1.74 billion from $1.16 billion, according to a statement from the business.
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The company reported that income from selling airline tickets increased from $27.4 million to $38.4 million in the third quarter of this year, while revenue from selling hotels and packages increased to $103.3 million from $67.2 million in the same quarter last year. The sale of bus tickets increased as well, from $14.7 million to $19.5 million. In a statement made during the earnings call, Rajesh Magow, co-founder and group CEO of MakeMyTrip, said that the reported quarter was the second high leisure travel season quarter of the year, helped by winter and festival holidays and long weekends.
Magow stated, “Positive consumer sentiment and peak seasonality on the back of festivals and holidays led to improved travel demand during this quarter… Strong growth across air, hotels and bus bookings reaffirms our position as a trusted travel super-app in India. We leveraged this demand and executed our business strategies well to get back to full recovery over pre-pandemic levels in gross booking terms while driving operating leverage from the cost optimization initiatives over the last few years.