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

Rhea-AI Summary

Yatra Online, Inc. (NASDAQ: YTRA) reported financial results for Q1 FY2025 ended June 30, 2024. Key highlights include:

- Revenue decreased 5.0% YoY to INR 1,050.7 million (USD 12.6 million)
- Adjusted Air Ticketing Margins declined 20.7% due to lower B2C volumes
- Adjusted EBITDA decreased 43.2% to INR 65.6 million (USD 0.8 million)
- Corporate Travel segment showed robust growth, securing 34 new accounts
- MICE business ramping up with positive early indicators
- Exploring strategic M&A opportunities in Corporate Travel segment
- Board-appointed committee working on streamlining corporate structure

Despite B2C challenges, the company remains focused on strengthening its market leadership in corporate travel services.

Positive

• Secured 34 new corporate customer accounts with INR 2,028 million annual billing potential
• Average billing potential for new corporate accounts up 77% sequentially
• MICE business showing positive early indicators for current quarter
• Exploring strategic M&A opportunities to bolster Corporate Travel segment
• Reduced loss for the period by INR 23.1 million YoY

Negative

• Revenue decreased 5.0% YoY to INR 1,050.7 million
• Adjusted Air Ticketing Margins declined 20.7% due to lower B2C volumes
• Adjusted EBITDA decreased 43.2% to INR 65.6 million
• Total Gross Bookings decreased 16.6% YoY to INR 16,547.6 million
• Result from operations swung to a loss of INR 34.1 million from a profit of INR 52.7 million YoY

Insights

Financial Analyst

Yatra's Q1 FY2025 results reveal a challenging quarter with revenue declining 5.0% YoY to INR 1,050.7 million. The B2C segment faced headwinds due to price competition, leading to lower volumes. However, the Corporate Travel segment showed robust growth, securing 34 new accounts with INR 2,028 million annual billing potential.

The company's Adjusted EBITDA decreased by 43.2% YoY to INR 65.6 million, reflecting lower volumes. Despite this, Yatra's loss narrowed to INR 0.8 million from INR 23.9 million last year. The company is exploring M&A opportunities and ramping up its MICE business, which could drive future growth.

Investors should monitor the progress of Yatra's corporate restructuring efforts and the performance of its Corporate Travel and MICE segments in coming quarters.

Market Research Analyst

Yatra's Q1 results reflect the intense competition in India's online travel market. The company's strategic decision to optimize discounts in the B2C segment led to volume declines but may improve profitability long-term. The Corporate Travel segment's growth is a bright spot, with new account acquisitions showing a 77% sequential increase in average billing potential.

The MICE business ramp-up and potential M&A activities in the Corporate Travel segment could be key growth drivers. However, investors should watch for the impact of continued price competition on Yatra's market share and profitability. The company's ability to balance growth and profitability in this competitive landscape will be important for its future performance.

Business Strategy Consultant

Yatra's Q1 results highlight a strategic pivot towards high-value segments. The focus on Corporate Travel and MICE businesses demonstrates a shift from the highly competitive B2C market to more lucrative B2B opportunities. This strategy could improve margins and provide more stable revenue streams long-term.

The company's exploration of M&A opportunities in the Corporate Travel segment suggests a commitment to consolidating its market leadership. The ongoing corporate restructuring efforts aim to streamline operations and enhance shareholder value, which could lead to improved efficiency and profitability.

While short-term financials show pressure, Yatra's strategic initiatives position it for potential long-term growth in India's evolving travel market. Investors should monitor the execution of these strategies and their impact on financial performance in upcoming quarters.

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 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).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240812870526/en/

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 revenue for Q1 FY2025?

Yatra Online (YTRA) reported revenue of INR 1,050.7 million (USD 12.6 million) for Q1 FY2025 ended June 30, 2024, representing a 5.0% decrease year-over-year.

How many new corporate customer accounts did Yatra Online secure in Q1 FY2025?

Yatra Online (YTRA) successfully secured 34 new corporate customer accounts in Q1 FY2025, representing an annual billing potential of INR 2,028 million.

What was Yatra Online's Adjusted EBITDA for Q1 FY2025?

Yatra Online (YTRA) reported Adjusted EBITDA of INR 65.6 million (USD 0.8 million) for Q1 FY2025, reflecting a decrease of 43.2% year-over-year.

How did Yatra Online's B2C segment perform in Q1 FY2025?

Yatra Online's (YTRA) B2C segment faced challenges in Q1 FY2025, with reduced volumes impacting Adjusted Air Ticketing Margins, which decreased by 20.7% year-over-year.

What strategic initiatives is Yatra Online pursuing to drive growth?

Yatra Online (YTRA) is exploring strategic M&A opportunities in the Corporate Travel segment, ramping up its MICE business, and working on streamlining its corporate structure to enhance shareholder value.