Yatra Online, Inc. Announces Results for the Three Months Ended September 30, 2024

Rhea-AI Summary

Yatra Online reported Q2 FY25 results with revenue of INR 2,363.3 million (USD 28.2 million), showing a 149.4% year-over-year increase. The company experienced a 13.0% decline in Adjusted Air Ticketing Margins due to B2C segment challenges, while Hotels and Packages margins improved by 43.8%. Adjusted EBITDA reached INR 66.7 million, up 91.2% YoY. The company acquired Globe Travels for INR 1,280.0 million, adding 360 new corporate clients. Total Gross Bookings were INR 17,651.6 million, up 0.7% YoY, with 29 new corporate clients secured in Q2 adding potential annual billing of INR 1,213.0 million.

Positive

• Revenue increased 149.4% YoY to INR 2,363.3 million
• Hotels and Packages margins improved 43.8% YoY
• Adjusted EBITDA increased 91.2% YoY to INR 66.7 million
• Loss decreased significantly from INR 272.9 million to INR 0.3 million YoY
• Strategic acquisition of Globe Travels added 360 new corporate clients

Negative

• Adjusted Air Ticketing Margins declined 13.0% YoY
• Air passengers booked decreased 17.1%
• Operating loss of INR 37.7 million

Insights

Financial Analyst

The Q2 FY25 results show mixed performance with notable strategic shifts. Revenue surged 149.4% YoY to INR 2,363.3 million, though this growth comes with nuanced underlying metrics. The strategic reduction in B2C air ticketing discounts led to a 13.0% decline in Adjusted Air Ticketing Margins, while Hotels and Packages margins improved 43.8%.

The acquisition of Globe Travels for INR 1,280 million brings significant strategic value, adding 360 corporate clients and strengthening MICE capabilities. The minimal client overlap and potential operational synergies could drive meaningful cost savings. The company's continued corporate client acquisition momentum, adding INR 1,213 million in potential annual billing from 29 new clients, demonstrates strong execution in the B2B segment.

Despite reaching near break-even with a minimal loss of INR 0.3 million, improved from INR 272.9 million loss YoY, working capital management and margin pressure in the B2C segment warrant attention.

Market Research Analyst

The strategic pivot towards corporate travel and MICE segments represents a significant market positioning shift. The Indian corporate travel market is experiencing robust growth and Yatra's acquisition of Globe Travels strengthens its competitive position. The 67.7% YoY growth in Hotels and Packages bookings, coupled with a 223% increase in package passengers, indicates strong execution in higher-margin segments.

The decline in air ticketing volumes (17.1% decrease in passengers) reflects the competitive intensity in the B2C space, where major players are engaging in aggressive pricing. However, the company's focus on profitability over volume in this segment, while expanding in corporate travel, suggests a sustainable long-term strategy. The planned corporate restructuring could further optimize operations and improve cost efficiency.

GURUGRAM, India & NEW YORK--(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 September 30, 2024.

“For the three months ended September 30, 2024, we reported revenue of INR 2,363.3 million (USD 28.2 million), reflecting a substantial year-over-year increase of 149.4%. Adjusted Air Ticketing Margins saw a 13.0% decline, primarily attributable to reduced volumes in the B2C segment as we strategically adjusted discounts to address intensified price competition. In contrast, our Adjusted Hotels and Packages margins improved significantly by 43.8% year-over-year, driven by strong performance in our MICE (Meetings, Incentives, Conferences, and Exhibitions) business. Adjusted EBITDA came in at INR 66.7 million (USD 0.8 million), a 91.2% increase from the prior year.

“Despite headwinds in the B2C air segment, we continue to drive strong growth in our Hotels and Packages and MICE lines of businesses, which helped us more than offset the negative impact of the B2C air business. In the second quarter of FY25, we successfully secured 29 new corporate clients, adding an annual billing potential of INR 1,213.0 million (USD 14.5 million).

“On September 11, 2024, we completed the acquisition of Globe All India Services (Globe Travels) for INR 1,280.0 million (USD 15.3 million) in cash. The results for the quarter include contribution from Globe Travels for 20 days of the quarter from September 11, 2024 - September 30, 2024. This strategic acquisition brought approximately 360 new corporate clients, further strengthening our leadership in India’s corporate travel sector. Globe Travels’ expertise in MICE complements our recent organic expansion in this segment, positioning Yatra as one of India’s largest players in this segment. With minimal overlap in client portfolios, this acquisition diversifies our client base and enhances cross-selling opportunities for hotels and expense management services. Additionally, integrating our digital booking platform with Globe Travel’s largely offline business is expected to drive synergies, operational efficiencies, and cost savings for our corporate clients.

“Progress on corporate restructuring is also advancing as the Company continues to engage with its counsels and other stakeholders including certain regulators towards the formulation of a comprehensive multi-jurisdictional corporate restructuring that can reduce administrative overhead, rationalize costs, and facilitate the growth for the Company. We are encouraged by the strong momentum in our Corporate Travel business, underscored by our growth in new accounts and MICE capabilities. As we continue to navigate a dynamic market, our focus remains on executing our strategic priorities to reinforce our market leadership and drive long-term value for stakeholders.” - Dhruv Shringi, Co-founder and CEO.

Financial and operating highlights for the three months ended September 30, 2024:

• Revenue of INR 2,363.3 million (USD 28.2 million), representing an increase of 149.4% year-over-year basis (“YoY”).
• Adjusted Margin ⁽¹⁾ from Air Ticketing of INR 885.9 million (USD 10.6 million), representing a decrease of 13.0% YoY.
• Adjusted Margin ⁽¹⁾ from Hotels and Packages of INR 400.1 million (USD 4.8 million), representing an increase of 43.8% YoY.
• Total Gross Bookings (Air Ticketing, Hotels and Packages and Other Services)⁽³⁾ of INR 17,651.6 million (USD 210.7 million), representing an increase of 0.7% YoY.
• Loss for the period was INR 0.3 million (USD 0.1 million) versus a loss of INR 272.9 million (USD 3.3 million) for the three months ended September 30, 2023, reflecting a decline in loss by INR 272.6 million (USD 3.3 million) YoY.
• Result from operations were a loss of INR 37.7 million (USD 0.4 million) versus a loss of INR 120.6 million (USD 1.4 million) for the three months ended September 30, 2023, reflecting a decrease in loss by INR 82.9 million (USD 1.0 million) YoY.
• Adjusted EBITDA⁽²⁾ was INR 66.7 million (USD 0.8 million) reflecting an increase by 91.2% YoY.

		Three months ended September 30,
		2023				2024				2024
		Unaudited				Unaudited				Unaudited				YoY Change
(In thousands except percentages)		INR				INR				USD				%
Financial Summary as per IFRS
Revenue			947,574				2,363,325				28,216				149.4	%
Results from operations			(120,598	)			(37,678	)			(449	)			(68.8	)%
Profit/(Loss) for the period			(272,862	)			(296	)			(3	)			99.9	%
Financial Summary as per non-IFRS measures
Adjusted Margin (1)
Adjusted Margin - Air Ticketing			1,018,276				885,855				10,576				(13.0	)%
Adjusted Margin - Hotels and Packages			278,271				400,148				4,777				43.8	%
Adjusted Margin - Other Services			49,561				75,935				907				53.2	%
Others (Including Other Income)			169,115				145,895				1,742				(13.7	)%
Adjusted EBITDA (2)			34,888				66,717				797				91.2	%
Operating Metrics
Gross Bookings (3)			17,520,272				17,651,566				210,739				0.7	%
Air Ticketing			14,771,705				13,260,073				158,310				(10.2	)%
Hotels and Packages			2,183,857				3,661,505				43,714				67.7	%
Other Services (6)			564,710				729,988				8,715				29.3	%
Adjusted Margin% (4)
Air Ticketing			6.9	%			6.7	%
Hotels and Packages			12.7	%			10.9	%
Other Services			8.8	%			10.4	%
Quantitative details (5)
Air Passengers Booked			1,660				1,377								(17.1	)%
Stand-alone Hotels Room Nights Booked			440				461								4.7	%
Packages Passengers Travelled			5				15								223.0	%

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 September 30, 2024, 61,723,260 ordinary shares (on an as-converted basis), par value $0.0001 per share, of the Company (the “Ordinary Shares”) were issued and outstanding.

Conference Call

The Company will host a conference call to discuss its unaudited results for the three months ended September 30, 2024 beginning at 8:30 AM Eastern Daylight Time (or 7:00 PM India Standard Time) on November 13, 2024. Dial in details for the conference call is as follows: US/International dial-in number: +1 404 975 4839. Confirmation Code: 173847 (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/840082388.

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, India's leading corporate travel services provider with over 1200 large corporate customers and one of India's leading online travel companies. The company provides information, pricing, availability and booking facility for domestic and international air travel, domestic and international hotel bookings, holiday packages, buses, trains, in city activities, inter-city and point-to-point cabs, homestays and cruises. With approximately 108K hotels and homestays contracted in approximately 1,500 cities across India, as well as approximately 2 million hotels around the world, the company is India's largest platform for domestic hotels.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241112039299/en/

For more information, please contact:

Manish Hemrajani

Yatra Online, Inc.

VP, Head of Corporate Development and Investor Relations

ir@yatra.com

Source: Yatra Online, Inc.

FAQ

What was Yatra Online's (YTRA) revenue growth in Q2 FY25?

Yatra Online reported revenue of INR 2,363.3 million in Q2 FY25, representing a 149.4% year-over-year increase.

How much did Yatra Online (YTRA) pay for Globe Travels acquisition?

Yatra Online acquired Globe Travels for INR 1,280.0 million (USD 15.3 million) in cash on September 11, 2024.

What was YTRA's Adjusted EBITDA for Q2 FY25?

Yatra Online's Adjusted EBITDA was INR 66.7 million (USD 0.8 million), showing a 91.2% increase year-over-year.