MakeMyTrip separates roles of CEO and exec chairman, coronavirus cancellations begin

MakeMyTrip’s co-founder and CEO of the India business, Rajesh Magow, has been elevated to group CEO, a role previously held by founder Deep Kalra.

As part of the role change, Kalra will inherit the new role of group executive chairman.

The announcement came on Tuesday during the company’s third quarter earnings call.

“We believe that separating the roles of group CEO and executive chairman will allow us to focus more on long-term strategic opportunities within and outside India while maintaining our market-leading position in our existing businesses,” says Kalra.

During the announcement, Kalra credited Magow for navigating its “India business through varied competitive dynamics and championing growth by diversifying revenue streams.”

“The transition also allows me to devote full time and focus on strategic initiatives for MakeMyTrip, which will include product innovation and expansion, geographic growth, business model innovation and corporate growth.”

Coronavirus Impact

The 2020 outbreak of the coronavirus is also affecting MakeMyTrip’s business in Southeast Asia.

Although Kalra says that its “domestic business should remain very insulated” from any impact, the company “started seeing higher-than-normal cancellations in our outbound business due to the outbreak.”

“Bookings for destinations in Southeast Asia have begun to see cancellations greater than normal and outbound travel to these destinations is likely to be impacted in the short term,” says Kalra.

In addition to destinations in China and Hong Kong, Kalra says the coronavirus has impacted bookings in Southeast Asia markets such as Singapore, Thailand and Malaysia.

Earnings

India’s largest online travel agency reported a 13.4% year-over-year increase in adjusted revenue to $206.7 million for the third quarter of fiscal year 2020.

Gross bookings rose by 18.8% to $1.7 billion, a deceleration from the 20.6% growth reported in the previous quarter.

MakeMyTrip’s adjusted operating loss decreased from $22.2 million in the same period last year to $11 million this quarter.

“Even during a period of weak consumer sentiment, we have been able to deliver a good quarter with decent growth in domestic hotels, outbound flights, as well as in the bus booking business, while our domestic flights business continued to deliver their desired numbers,” says Magow.

It was another strong quarter for MakeMyTrip’s bus ticketing business, with a 38.1% increase in adjusted revenue to $20.8 million and a 27.4% increase in gross bookings to $242.2 million.

Magow says the company updated its bus ticketing app to add “nearby landmarks and GPS coordinates to help pinpoint precise bus pickup and drop-off locations.”

Adjusted revenue for hotels and packages grew 11.4% to $106.2 million and gross bookings increased by 17.3% $471.7 million.

The company rolled out a new mobile listings page for lodging that Magow says will “make it faster and easier for shoppers to make the best selection possible.”

Air ticketing adjusted revenue was up 16.7% to $70.9 million and gross bookings increased by 20.1% to $986 million.

Marketing and sales expenses decreased by 9.5% to $45 million in the quarter.

* Check out this interview with Magow in the PhocusWire Studio at The Phocuswright Conference 2018.