MakeMyTrip Q1FY25 ad spends up 31% to USD 40mn

New Delhi: MakeMyTrip on Tuesday said that the company spent 31% more on marketing and sales promotion expenses in the quarter ending June 2024.

Announcing the results for the Q1 FY25, the company said that the advertising expenses grew to $40.1 million, up 31% from $30.6 million in the quarter ended June 30, 2023. 

“The increased expenses were primarily due to an increase in variable costs and discretionary expenditures such as expenses on events and brand building initiatives in response to the robust travel demand in India in the quarter ended June 30, 2024 as compared to the quarter ended June 30, 2023,” the company said.

The robust demand helped MMT generate revenue of $254.5 million in the quarter ended June 30, 2024, an increase of 29.4% (31.4% in constant currency(1)) over revenue of $196.7 million in the quarter ended June 30, 2023, primarily as a result of an increase of 25.4% (27.2% in constant currency) in revenue from our air ticketing business, an increase of 27.5% (29.6% in constant currency) in revenue from our hotels and packages business, an increase of 17.2% (19.3% in constant currency) in revenue from our bus ticketing business, and an increase of 95.2% (97.2% in constant currency) in revenue from our others business, each as further described below. The increase in revenue was primarily due to the robust travel demand in India for both domestic and international outbound travel in the quarter ended June 30, 2024 as compared to the quarter ended June 30, 2023.

The profit for the quarter ended June 30, 2024 was $21.0 million as compared to $18.6 million in the quarter ended June 30, 2023. The Adjusted Net Profit was $44.5 million in the quarter ended June 30, 2024, as compared to $33.6 million in the quarter ended June 30, 2023.

Commenting on the results, Rajesh Magow, Group Chief Executive Officer, MakeMyTrip, said, “We are pleased to see a robust start to this fiscal year. We believe that the long-term growth story of India's travel and tourism sector is fuelled by multiple macroeconomic drivers like increasing government investments in travel infrastructure, rising disposable incomes of the middle class, and increasing propensity to travel. These drivers indicate that India's travel and tourism industry growth is expected to be higher than the country’s GDP growth rate. We aim to continue to drive our growth by capitalising on the shift from offline to online buying and expanding our customer base and wallet share.”