GURUGRAM, India & NEW YORK, August 12, 2024--(BUSINESS WIRE)--Yatra Online, Inc. (NASDAQ: YTRA) (the "Company"), India’s leading corporate travel services provider and one of India’s leading online travel companies, today announced its unaudited financial and operating results for the three months ended June 30, 2024.
"For the three months ended June 30, 2024, we reported revenue of INR 1,050.7 million (USD 12.6 million), representing a decline of 5.0% year-over-year. Adjusted Air Ticketing Margins were impacted by a 20.7% decrease driven by lower volumes. The decline was primarily driven by reduced volumes in the B2C segment, as we optimized discounts amid intensifying price competition in the market. Adjusted EBITDA came in at INR 65.6 million (USD 0.8 million), a decrease from INR 115.4 million in the same period last year, reflecting the impact of lower volumes.
Despite challenges in the B2C segment during the June quarter, the Corporate Travel segment showed robust growth across all key metrics. We successfully secured 34 new corporate customer accounts, representing an annual billing potential of INR 2,028 million, with average billing potential up 77% sequentially. As the leader in Corporate Travel services in India, our customer acquisition rates remain strong, consistently outperforming industry benchmarks. We are currently exploring strategic M&A opportunities to further bolster our Corporate Travel segment, with a promising pipeline of prospects under evaluation.
In addition, we made significant strides in our Meetings, Incentives, Conferences, and Exhibitions (MICE) business. During the quarter, a newly onboarded team began ramping up operations. While MICE contributions were muted for the June quarter, early indicators for the current quarter are positive, with meaningful business already secured. We anticipate this business will become a significant growth driver in the near future.
Progress continues toward simplifying our corporate structure, with the Board-appointed restructuring committee actively engaging with all relevant stakeholders. The committee is diligently working on developing a comprehensive proposal to streamline our operations and enhance shareholder value.
The June quarter posed challenges for our B2C segment; however, we are encouraged by the strong momentum we are witnessing in our Corporate Travel business. The growth in new corporate accounts and the exciting developments in our MICE business underscore our commitment to driving long-term value for our stakeholders. As we navigate the evolving landscape, we remain focused on our strategic priorities to further strengthen our market leadership." - Dhruv Shringi, Co-founder and CEO.
Financial and operating highlights for the three months ended June 30, 2024:
Revenue of INR 1,050.7 million (USD 12.6 million), representing a decrease of 5.0% year-over-year basis ("YoY").
Adjusted Margin (1) from Air Ticketing of INR 919.0 million (USD 11.0 million), representing a decrease of 20.7% YoY.
Adjusted Margin (1) from Hotels and Packages of INR 277.1 million (USD 3.3 million), representing a decrease of 9.9% YoY.
Total Gross Bookings (Air Ticketing, Hotels and Packages and Other Services)(3) of INR 16,547.6 million (USD 198.6 million), representing a decrease of 16.6% YoY.
Loss for the period was INR 0.8 million (USD 0.1 million) versus a loss of INR 23.9 million (USD 0.3 million) for the three months ended June 30, 2023, reflecting a decline in loss by INR 23.1 million (USD 0.3 million) YoY.
Result from operations were a loss of INR 34.1 million (USD 0.4 million) versus a profit of INR 52.7 million (USD 0.6 million) for the three months ended June 30, 2023, reflecting a decrease in profit by INR 86.8 million (USD 1.0 million) YoY.
Adjusted EBITDA(2) was INR 65.6 million (USD 0.8 million) reflecting a decrease by 43.2% YOY.
Three months ended June 30,
2023
2024
2024
YoY Change
Unaudited
Unaudited
Unaudited
(In thousands except percentages)
INR
INR
USD
%
Financial Summary as per IFRS
Revenue
1,105,817
1,050,717
12,609
(5.0
)%
Results from operations
52,721
(34,125
)
(410
)
(164.7
)%
Loss for the period
(23,944
)
(763
)
(10
)
96.8
%
Financial Summary as per non-IFRS measures
Adjusted Margin (1)
Adjusted Margin - Air Ticketing
1,159,032
918,951
11,028
(20.7
)%
Adjusted Margin - Hotels and Packages
307,621
277,141
3,326
(9.9
)%
Adjusted Margin - Other Services
32,728
72,117
865
120.4
%
Others (Including Other Income)
153,988
154,484
1,854
0.3
%
Adjusted EBITDA (2)
115,405
65,590
787
(43.2
)%
Operating Metrics
Gross Bookings (3)
19,834,376
16,547,649
198,580
(16.6
)%
Air Ticketing
16,923,959
13,520,293
162,250
(20.1
)%
Hotels and Packages
2,404,142
2,398,832
28,787
(0.2
)%
Other Services (6)
506,275
628,524
7,543
24.1
%
Adjusted Margin% (4)
Air Ticketing
6.8
%
6.8
%
Hotels and Packages
12.8
%
11.6
%
Other Services
6.5
%
11.5
%
Quantitative details (5)
Air Passengers Booked
1,825
1,330
(27.1
)%
Stand-alone Hotel Room Nights Booked
491
417
(15.1
)%
Packages Passengers Travelled
6
7
17.4
%
Note:
(1)
As certain parts of our revenue are recognized on a "net" basis and other parts of our revenue are recognized on a "gross" basis, we evaluate our financial performance based on Adjusted Margin, which is a non-IFRS measure.
(2)
See the section below titled "Certain Non-IFRS Measures."
(3)
Gross Bookings represent the total amount paid by our customers for travel services, freight services and products booked through us, including taxes, fees and other charges, and are net of cancellation and refunds.
(4)
Adjusted Margin % is defined as Adjusted Margin as a percentage of Gross Bookings.
(5)
Quantitative details are considered on a gross basis.
(6)
Other Services primarily consists of freight business, IT services, bus, rail and cab and others services.
As of June 30, 2024, 61,576,370 ordinary shares (on an as-converted basis), par value $0.0001 per share, of the Company (the "Ordinary Shares") were issued and outstanding.
Convenience Translation
The unaudited condensed consolidated financial statements are stated in INR. However, solely for the convenience of readers, the unaudited condensed consolidated statement of profit or loss and other comprehensive loss for the three months ended June 30, 2024, the unaudited condensed consolidated statement of financial position as at June 30, 2024, the unaudited condensed consolidated statement of cash flows for the three months ended June 30, 2024 and discussion of the results of the three months ended June 30, 2024 compared with three months ended June 30, 2023, were converted into U.S. dollars at the exchange rate of 83.33 INR per USD, which is based on the noon buying rate as at June 30, 2024, in The City of New York for cable transfers of Indian rupees as certified for customs purposes by the Federal Reserve Bank of New York. This arithmetic conversion should not be construed as representation that the amounts expressed in INR may be converted into USD at that or any other exchange rate as well as that such numbers are in compliance as per the requirements of the International Financial Reporting Standards ("IFRS").
Conference Call
The Company will host a conference call to discuss its unaudited results for the three months ended June 30, 2024 beginning at 8:30 AM Eastern Daylight Time (or 6:00 PM India Standard Time) on August 13, 2024. Dial in details for the conference call is as follows: US/International dial-in number: +1 404 975 4839. Confirmation Code: 825008 (Callers should dial in 5-10 minutes prior to the start time and provide the operator with the Confirmation Code). The conference call will also be available via webcast at https://events.q4inc.com/attendee/252250535.
Safe Harbor Statement
This earnings release contains certain statements concerning the Company’s future growth prospects and forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are based on the Company’s current expectations, assumptions, estimates and projections about the Company and its industry. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "intend," "will," "project," "seek," "should" similar expressions and the negative forms of such expressions. Such statements include, among other things, statements regarding the long-term growth trajectory for the Indian travel market, statements concerning management’s beliefs as well as our strategic and operational plans; the anticipated benefits of the Indian IPO; the degree to which and how we will utilize debt facilities or the proceeds from the Indian IPO and the results we anticipate from how such funds are utilized; expected buyback activity with respect to our share repurchase program; and our future financial performance. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, the impact of increasing competition in the Indian travel industry and our expectations regarding the development of our industry and the competitive environment in which we operate; the slowdown in Indian economic growth and travel industry in particular, including disruptions caused by safety concerns, terrorist attacks, regional conflicts (including the ongoing conflict between Ukraine and Russia and the evolving events in Israel, Gaza and the Middle East), pandemics and natural calamities, our ability to successfully negotiate our contracts with airline suppliers and global distribution system service providers and mitigate any negative impacts on our Revenue that result from reduced commissions, incentive payments and fees we receive; the risk that airline suppliers (including our GDS service providers) may reduce or eliminate the commission and other fees they pay to us for the sale of air tickets; our ability to pursue strategic partnerships and the risks associated with our business partners; the potential impact of recent developments in the Indian travel industry on our profitability and financial condition; political and economic stability in and around India and other key travel destinations; our ability to maintain and increase our brand awareness; our ability to realize the anticipated benefits of any past or future acquisitions; our ability to successfully implement our growth strategy; our ability to attract, train and retain executives and other qualified employees, and our ability to successfully implement any new business initiatives. These and other factors are discussed in our reports filed with the U.S. SEC. All information provided in this earnings release is provided as of the date of issuance of this earnings release, and we do not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Yatra Online, Inc.
Yatra Online, Inc. is the ultimate parent company of Yatra Online Limited, a public listed company on the NSE and BSE ("Yatra India"). Yatra India is India’s largest corporate travel services provider with ~800 large corporate customers and approximately 50,000 registered SME customers and the third largest online travel company (OTC) in India among key OTA players in terms of gross booking revenue and operating revenue for Fiscal 2023 (Source: CRISIL Report). Leisure and business travelers use Yatra India’s mobile applications, its website, www.yatra.com, and its other offerings and services to explore, research, compare prices and book a wide range of travel-related services. These services include domestic and international air ticketing on nearly all Indian and international airlines, as well as bus ticketing, rail ticketing, cab bookings and ancillary services within India. With approximately 108,000 hotels in approximately 1,500 cities and towns in India as well as more than 2 million hotels around the world, Yatra India has the largest hotel inventory amongst key Indian online travel agency (OTA) players (Source: CRISIL Report).
