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MakeMyTrip Limited Announces Fiscal 2013 Fourth Quarter And Full Year Results

Financial Highlights for Fiscal 2013 Fourth Quarter and Full Year (Year over Year (YoY) growth % are on constant currency basis (1); please see table below for YoY growth % on actual basis)

  • Gross bookings (5) reached $311.7 million in 4Q13 and $1.17 billion in FY13, representing a year on year increase of 34.1% and 32.3%, respectively.
  • Transactions for Hotels and packages improved by 97.1% yoy in 4Q13 and by 65.6% yoy in FY13. Transactions for air ticketing grew by 13.0% yoy in 4Q13 and by 2.1% yoy in FY13.
  • Revenue rose 23.5% yoy to $55.2 million in 4Q13 and grew 29.7% yoy to $228.8 million for FY13.
  • Revenue less service costs (2) increased 4.1% yoy to $21.8 million in 4Q13 and increased 11.7% yoy to $88.2 million for FY13.
  • Revenue less service costs (2) for Hotels and packages increased 146.1% yoy for 4Q13 and increased 65.7% yoy for FY13 . Hotels and packages contribution increased to 34.9% in 4Q13 versus 14.4% in 4Q12 and increased to 30.7% in FY13 versus 20.7% in FY12.

GURGAON, India and NEW YORK, May 22, 2013 (GLOBE NEWSWIRE) -- MakeMyTrip Limited (Nasdaq:MMYT), India's leading online travel company, today announced its unaudited financial and operating results for its fourth fiscal quarter and full fiscal year ended March 31, 2013.

"In fiscal year 2013 we succeeded by offering superior user experience and customer satisfaction, despite facing various operating challenges," said Deep Kalra, Chairman and CEO. "As part of our long term strategy to grow the Hotels and packages business, we significantly improved our annual non-air net revenue mix to over 35%."

(in thousands except EPS) 3 months Ended March 31, 2012 3 months Ended March 31, 2013 YoY Change YoY Change in constant currency (1) Year Ended March 31, 2012 Year Ended March 31, 2013 YoY Change YoY Change in constant currency (1)
Financial Summary as per IFRS                
Revenue $46,954.7 $55,189.0 17.5% 23.5% $196,599.3 $228,821.9 16.4% 29.7%
Revenue Less Service Costs (2) $22,092.2 $21,773.3 -1.4% 4.1% $88,184.9 $88,165.2 0.0% 11.7%
Air Ticketing $17,836.8 $13,144.9 -26.3% -21.2% $66,250.7 $56,769.2 -14.3% -3.3%
Hotels & packages $3,185.7 $7,696.8 141.6% 146.1% $18,226.3 $27,592.2 51.4% 65.7%
Other $1,069.6 $931.5 -12.9% -7.8% $3,707.8 $3,803.8 2.6% 13.9%
Results from Operating Activities ($2.0) ($8,692.8)     $4,005.4 ($18,062.0)    
Adjusted Operating Profit (Loss) (3) $2,797.6 ($5,496.6)     $11,205.1 ($5,118.3)    
Income (Loss) for the period (6) $6,181.7 ($20,315.0)     $7,048.4 ($27,589.1)    
Adjusted Net Income (Loss) (4) $3,018.2 ($6,523.7)     $9,300.4 ($6,042.4)    
Diluted earnings (loss) per share $0.161 ($0.54)     $0.19 $ (0.74)    
Adjusted Diluted earnings (loss) per share (5) $0.08 ($0.17)     $0.24 ($0.16)    
Operating Metrics                
Gross Bookings (5) $246,557.9 $311,682.2 26.4% 34.1% $992,957.5 $1,169,558.6 17.8% 32.3%
Air Ticketing $213,382.0 $248,879.3 16.6% 24.2% $839,234.3 $939,637.5 12.0% 26.3%
Hotels & packages $33,175.9 $62,802.9 89.3% 97.7% $153,723.2 $229,921.0 49.6% 65.0%
Number of Transactions                
Air Ticketing 933.0 1054.2 13.0%   3715.4 3794.1 2.1%  
Hotels & packages 84.7 167.0 97.1%   343.1 568.1 65.6%  
 
(1) Constant currency refers to our financial results assuming constant foreign exchange rates for the current fiscal period based on the reporting for the historical average rate used in the prior year's comparable fiscal period.
(2) Represents IFRS revenue after deducting service costs. IFRS refers to International Financial Reporting Standards as issued by the International Accounting Standards Board.
(3) Results from operating activities excluding employee share-based compensation costs, merger and acquisitions related expenses and amortization of acquisition related intangibles.
(4) Income (loss) for the period excluding 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 fair value of derivative financial instrument and income tax (benefit) expense.
(5) Represent the total amount paid by our customers for the travel services and products booked through us, including taxes, fees and other charges, net of cancellations and refunds.
(6) Includes deferred tax benefit recognised in the quarter and year ended March 31, 2012 of USD 6.1 million and deferred tax expense recognised in the quarter and year ended March 31, 2013 of USD 10.5 million and USD 8.5 million, respectively.

Please see "About Non-IFRS Financial Measures" included within this release to understand the importance of the financial measures set forth in notes (1) to (6) above. Reconciliations of IFRS financial measures to non-IFRS operating results are included at the end of this release. 

OTHER INFORMATION

Share Repurchase

The following table provides information about purchases by us during the year ended March 31, 2013 of our outstanding ordinary shares, par value USD 0.0005 per share:

Period (a) Total Number of Shares Purchased (b) Average Price Paid per Share(2) (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(1)
10/01/12 – 10/31/12 NIL  NIL NIL NIL
11/01/12 – 11/30/12 NIL NIL NIL $ 25,000,000
12/01/12 – 12/31/12 40,142 $ 12.63 40,142 $ 24,492,145
01/01/13 – 01/31/13 NIL NIL NIL $ 24,492,145
02/01/12 – 02/28/13 NIL NIL NIL $ 24,492,145
03/01/13 – 03/31/13 NIL NIL NIL $ 24,492,145
Total 40,142 $ 12.63 40,142 $ 24,492,145
 
(1) On November 6, 2012, our Board of Directors authorized the Company to purchase outstanding ordinary shares, par value $0.0005 per share, of the Company. The authorizations permit us to purchase our ordinary shares on the open market, in privately negotiated transactions or otherwise in an aggregate amount of up to $25 million. In the year ended March 31, 2013, we repurchased 40,142 ordinary shares at an average price of approximately $12.63 per share (excluding broker and transaction fees). As of March 31, 2013, we had remaining authority to repurchase up to approximately $24.49 million of our outstanding ordinary shares.
(2) The average price paid per share excludes broker and transaction fees.

Fiscal 2013 Fourth Quarter Financial Results

Revenue. We generated revenue of $55.2 million in the quarter ended March 31, 2013, an increase of 17.5% (23.5% in constant currency) over revenue of $47.0 million in the quarter ended March 31, 2012.

Air Ticketing. Revenue from our air ticketing business decreased by 32.6% (27.8% in constant currency) to $14.1 million in the quarter ended March 31, 2013 from $20.9 million in the quarter ended March 31, 2012. Our revenue less service costs (2) decreased by 26.3% (21.2% in constant currency) to $13.1 million in the quarter ended March 31, 2013 from $17.8 million in the quarter ended March 31, 2012. Gross bookings grew by 16.6% (24.2% in constant currency) year on year mainly due to increase in transactions by 13.0% and aided by higher airfares in the quarter ended March 31, 2013. The decline in revenue less service costs was mainly due to decrease in our net revenue margin (defined as Revenue less service cost as a percentage of gross bookings) to 5.3% from 8.4% a year ago, mainly due to reduction in airlines' base commission. Net revenue margin remained at the same level as compared to the previous quarter.

Hotels and Packages. Revenue from our hotels and packages business increased by 60.8% (67.0% in constant currency) to $40.2 million in the quarter ended March 31, 2013 from $25.0 million in the quarter ended March 31, 2012. Our revenue less service costs (2) increased by 141.6% (146.1% in constant currency) to $7.7 million from $3.2 million in the quarter ended March 31, 2012. This was due to increase in gross bookings by 89.3% (97.7% in constant currency) primarily due to a 97.1% increase in the number of transactions and increase in net revenue margin from 9.6% in the quarter ended March 31, 2012 to 12.3% in the quarter ended March 31, 2013. Net revenue margin increased over previous quarter margin of 11.1%. The growth in this segment was further aided by the acquisition of Hotel Travel Group and ITC Group in the quarter ended December 31, 2012.

Other Revenue. Our other revenue decreased to $0.9 million in the quarter ended March 31, 2013 from $1.0 million in the quarter ended March 31, 2012, primarily due to lower advertisement income on our websites.

Total Revenue less Service Costs. Our total revenue less service costs decreased by 1.4% (increased by 4.1% in constant currency) to $21.8 million in the quarter ended March 31, 2013 from $22.1 million in the quarter ended March 31, 2012 as a result of a 26.3% (21.2% in constant currency) decrease in our air ticketing revenue less service costs, partially offset by an increase of 141.6% (146.1% in constant currency) in our hotels and packages revenue less service costs.

Personnel Expenses. Personnel expenses increased to $9.8 million in the quarter ended March 31, 2013 from $7.6 million in the quarter ended March 31, 2012, mainly due to increases in annual wages, growth in employee headcount in Hotels and package business and due to acquisitions in the previous quarter. Excluding employee share-based compensation costs, personnel expenses as a percentage of net revenue increased by 10.1 percentage points year over year, in line with the growth in our business and acquisitions in the quarter ended December 31, 2012.

Other Operating Expenses. Other operating expenses increased by 41.8% to $19.4 million in the quarter ended March 31, 2013 from $13.7 million in the quarter ended March 31, 2012, primarily as a result of an increase in advertisement expenses, payment gateway charges and outsourcing fees and in line with the growth in our business and recent acquisitions.

Results from Operating Activities. As a result of the foregoing factors, our results from operating activities was a loss of $8.7 million in the quarter ended March 31, 2013 from a loss of $0.002 million in the quarter ended March 31, 2012. Excluding the effects of our employee share-based compensation costs, merger and acquisitions related expenses and amortization of acquisition related intangibles for both quarters ended March 31, 2013 and 2012, we would have recorded an operating loss of $5.5 million in the quarter ended March 31, 2013 compared with an operating profit of $2.8 million in the quarter ended March 31, 2012.

Net Finance Income (costs). Our net finance cost was $1.0 million in the quarter ended March 31, 2013 as against net finance income of $0.2 million in the quarter ended March 31, 2012. This was mainly due to higher provisioning of loss on trade and other receivables in the quarter ended March 31, 2013.

Income tax benefit (expense). Deferred tax assets of $10.5 million had been recognized in the previous periods, relating to unutilized tax losses and other temporary differences in respect of our Indian subsidiary. Our Indian subsidiary after two consecutive years of reported profits had incurred losses in the fiscal year ended March 31, 2013. Based on evaluation of convincing evidence required by International Accounting Standard – Income Taxes (IAS 12), the management has recorded the impairment of deferred tax asset of $10.5 million in the quarter ended March 31, 2013. The impairment has no impact on the Company's ability to utilize loss carry forwards or tax assets in the future and is not a reflection of management's views on its ability to increase the profitability of the business in the future.

Profit (Loss) for the Period. As a result of the foregoing factors, including the effects of deferred tax benefit (expense) on previous year's tax losses, employee share-based compensation costs, merger and acquisitions related expenses and amortization of acquisition related intangibles, our loss for the quarter ended March 31, 2013 was $20.3 million as compared to a profit of $6.2 million in the quarter ended March 31, 2012. Excluding the effects of reversal of deferred tax benefit on previous year's tax losses, 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 and net loss on change in the fair value of derivative financial instruments  for the fourth quarter of both fiscal years 2013 and 2012, we would have recorded a net loss of $6.5 million in the quarter ended March 31, 2013 and a net profit of $3.0 million in the quarter ended March 31, 2012.

Diluted Earnings (Loss) per share. Diluted loss per share was $0.54 for the quarter ended March 31, 2013 as compared to diluted earnings per share of $0.16 in the quarter ended March 31, 2012. After adjusting for deferred tax benefit (expense) on previous year's tax losses, 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 and net loss on change in the fair value of derivative financial instruments for the fourth quarter of both fiscal years 2013 and 2012, as mentioned in the preceding paragraph, diluted loss per share were $0.17 in the quarter ended March 31, 2013, compared to diluted earnings per share of $0.08 in the quarter ended March 31, 2012.

Fiscal 2013 Full Year Financial Results

Revenue. We generated revenue of $228.8 million in the year ended March 31, 2013, an increase of 16.4% (29.7% in constant currency) over revenue of $196.6 million in the year ended March 31, 2012.

Air Ticketing. Revenue from our air ticketing business decreased by 20.1% (9.8% in constant currency) to $60.9 million in the year ended March 31, 2013 from $76.2 million in the year ended March 31, 2012. Our revenue less service costs (2) decreased by 14.3% (3.3% in constant currency) to $56.8 million in the year ended March 31, 2013 from $66.3 million in the year ended March 31, 2012. Gross bookings grew by 12.0% (26.3% in constant currency) year on year primarily due to materially higher airfares further aided by 2.1% growth in transactions. The decline in revenue less service costs was mainly due to a decline in our net revenue margin (defined as Revenue less service cost as a percentage of gross bookings) to 6.0% from 7.9% a year ago, as airlines in India reduced their base commissions.

Hotels and Packages. Revenue from our hotels and packages business increased by 40.6% (56.0% in constant currency) to $164.1 million in the year ended March 31, 2013 from $116.7 million in the year ended March 31, 2012. Our revenue less service costs (2) increased by 51.4% (65.7% in constant currency) to $27.6 million in the year ended March 31, 2013 from $18.2 million in the year ended March 31, 2012. This was due to an increase in gross bookings by 49.6% (65.0% in constant currency) primarily due to 65.6% increase in the number of transactions and marginal increase in net revenue margin from 11.9% in the year ended March 31, 2012 to 12.0% in the year ended March 31, 2013. The growth in this segment was further aided by the acquisition of Hotel Travel Group and ITC Group in the quarter ended December 31, 2012.

Other Revenue. Our other revenue increased to $3.8 million in the year ended March 31, 2013 from $3.7 million in the year ended March 31, 2012, primarily due to higher advertisement income on our websites partially offset by decrease in sale of rail tickets.

Total Revenue less Service Costs. Our total revenue less service costs remained at same level (increase of 11.7% in constant currency) at $88.2 million in the year ended March 31, 2013 from $88.2 million in the year ended March 31, 2012 as a result of a decrease of 14.3% (3.3% in constant currency) in our air ticketing revenue less service costs, offset by an increase of 51.4% (65.7% in constant currency) in our hotels and packages revenue less service costs.

Personnel Expenses. Personnel expenses increased to $34.5 million in the year ended March 31, 2013 from $26.5 million in the year ended March 31, 2012, mainly as a result of employee share-based compensation costs of $11.7 million in the year ended March 31, 2013 as against $6.9 million in year ended March 31, 2012, as well as due to increases in annual wages and growth in employee headcount mainly in hotels and package business and due to the acquisitions in the previous quarter. Excluding employee share-based compensation costs, personnel expenses as a percentage of net revenue increased by 367 basis points year over year.

Other Operating Expenses. Other operating expenses increased by 23.8% to $68.0 million in the year ended March 31, 2013 from $54.9 million in the year ended March 31, 2012, primarily as a result of an increase in outsourcing fees, advertising and business promotion expenses and payment gateway charges in line with the growth in our business and recent acquisitions. Other operating expenses include merger and acquisitions related expenses of $0.7 million in the year ended March 31, 2013 as against $0.2 million in year ended March 31, 2012. Merger and acquisitions related expenses include professional fees and certain other expenses associated with acquisitions and certain non-routine transactions, whether or not consummated.

Results from Operating Activities. As a result of the foregoing factors, our results from operating activities was a loss of $18.1 million in the year ended March 31, 2013 versus a profit of $4.0 million in the year ended March 31, 2012. Excluding the effects of our employee share-based compensation costs, merger and acquisitions related expenses and amortization of acquisition related intangibles for both fiscal years 2013 and 2012, we would have recorded an operating loss of $5.1 million in the year ended March 31, 2013 compared with an operating profit of $11.2 million in the year ended March 31, 2012.

Net Finance Income (Costs). Our net finance cost was $0.7 million in the year ended March 31, 2013 versus a cost of $3.0 million in the year ended March 31, 2012, primarily due to higher interest income earned on term deposits with banks in the year ended March 31, 2013, offset by follow-on public offering costs related to our listing of existing shares in the year ended March 31, 2012.

Income tax benefit (expense). Deferred tax assets of $8.9 million had been recognized in the previous years, relating to unutilized tax losses and other temporary differences in respect of its Indian subsidiary. The Indian subsidiary after two consecutive years of profits has incurred losses in the fiscal year ended March 31, 2013. Based on evaluation of convincing evidence required by IAS 12, management has recorded impairment of deferred tax asset of $8.5 million in the year ended March 31, 2013. The impairment has no impact on the Company's ability to utilize loss carry forwards or tax assets in the future and is not a reflection of management's views on its ability to increase the profitability of the business in the future.

Profit (Loss) for the year. As a result of the foregoing factors, including the effects of deferred tax benefit (expense) on previous year's tax losses, employee share-based compensation costs, merger and acquisitions related expenses and amortization of acquisition related intangibles and follow-on public offering costs, our loss for the year ended March 31, 2013 was $27.6 million as compared to a profit of $7.0 million in the year ended March 31, 2012.  Excluding the effects of deferred tax benefit (expense) on previous year's tax losses, amortization of acquisition related intangibles, employee share-based compensation costs, net loss on change in the fair value of derivative financial instruments and interest accretion on financial liability related to business combination for both fiscal years 2013 and 2012, follow-on public offering costs in fiscal year 2012, we would have recorded a net loss of $6.0 million in the year ended March 31, 2013 and a net profit of $9.3 million in year ended March 31, 2012.

Diluted Earnings (Loss) per share. Diluted loss per share was $0.74 for the year ended March 31, 2013 as compared to earnings per share of $0.19 in the corresponding prior fiscal year. Adjusted for deferred tax benefit (expense) on the previous year's tax losses, amortization of acquisition related intangibles, employee share-based compensation costs, net loss on change in the fair value of derivative financial instruments and interest accretion on financial liability related to business combination for both fiscal years 2013 and 2012, follow-on public offering costs in fiscal year 2012, as mentioned in the preceding paragraph, diluted loss per share were $0.16 in the year ended March 31, 2013, compared to earnings per share of $0.24 in the year ended March 31, 2012.

Fiscal Year 2013-14 Outlook

We are encouraged by the transactions growth in the under-penetrated online hotels and holiday's business, however we continue to be cautious about the growth in our air ticketing business. Therefore, we are initiating our fiscal year 2014 revenue less service costs growth guidance in the range of 15% to 20% on constant currency basis, which will result in revenue less service costs guidance in the range of approximately $101 million to $106 million at a planned average exchange rate of INR 54.43 to a U.S. Dollar.

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