New Delhi: Travel service provider MakeMyTrip on Friday reported that its marketing and sales promotion expenses increased by 31.2% to $47.3 million in the quarter ended December 31, 2024, from $36.1 million in the corresponding quarter of the previous fiscal.
The travel giant attributed the rise to an increase in variable costs and discretionary expenditures such as expenses on events and brand-building initiatives in response to strong travel demand in India in the quarter.
The NASDAQ-listed company’s profit jumped to $27.1 million in the third quarter of the current financial year, up 12% from $24.2 million in the corresponding quarter of the previous year.
The total consolidated revenue for the travel service provider surged by 24.8% y-o-y, reaching $267.36 million compared to $241.21 million in Q3FY24, the company said in its filing with the US Securities and Exchange Commission (SEC). In constant currency terms, this jump was registered at 26.2% y-o-y.
“The increase in revenue was primarily due to strong travel demand in India for both domestic and international outbound travel in the quarter ended December 31, 2024 as compared to the quarter ended December 31, 2023,” the company said.
Segments such as air ticketing, hotel & packages, bus ticketing, among others, contributed to the growth. “We registered an increase of 18.6% (20.2% in constant currency) in revenue from our air ticketing business, 17.2% (18.4% in constant currency) in revenue from our hotels and packages business, 31.7% (32.8% in constant currency) in revenue from our bus ticketing business, and 110.7% (113.4% in constant currency) in revenue from our other business.”
Commenting on the results, Rajesh Magow, Group Chief Executive Officer, MakeMyTrip, said, “The Indian travel and tourism sector is witnessing robust growth, reflecting a strong desire among travelers to explore new horizons. While Indian destinations continue to shine, many countries have made significant efforts to attract Indian travelers. Our strong performance this quarter reflects these macro trends, along with our focused execution and commitment to customer centricity.”
Chiming in, Mohit Kabra, Group Chief Financial Officer, MakeMyTrip, commented, “Our robust financial performance this quarter across all lines of business underscores our strong execution of strategic priorities and the resilience of the travel sector. Our disciplined approach to cost management, combined with targeted investments in technology and customer experience, has enabled us to capitalize on growing travel demand and drive profitable growth.”