Make My Trip Earnings Recap

If you missed the original write-up on Make My Trip (MMYT), here is the LINK.

Source - Make My Trip

Here are Five Takeaways from yesterday’s earnings:

Bookings grew 19% year over year in a seasonally weak quarter.

·        The share of air tickets booked on MMYT grew to 35%.

·        Bookings for hotels and packages grew by 30%. 

·        The take rate (aka commission rate) was steady at 10.3%

Net Revenue margin was 76%. Net revenues grew 30% year-on-year.  As the mix of hotels & packages grows, the net revenue margin should continue to grow. 

Marketing and sales only grew 1%.  Total marketing spend as a % of bookings was 4.6%, the lowest in Company history (ex Covid Q).  Strong revenue growth with improving marketing efficiency suggests strong customer retention and brand power.

Operating income and operating cash flow per share grew 260% and 170% year-over-year respectively.

MMYT produced strong top and bottom-line results in a seasonally weak quarter marred by temporary airline service interruptions.

These strong results validate the durable business moat of Make My Trip.