One97 Communications (PAYTM) Q4 17/18 earnings summary

Executive summary

• Consolidated revenue from operations rose to INR 3,058.09 crore in FY 2017-18 from INR 614.62 crore; net loss widened to INR 1,604.34 crore from INR 899.64 crore.

• Growth initiatives targeted payments, insurance, ticketing, hotels and wallet services, while management said profitability remained a priority for coming years.

Financial highlights

• Consolidated total income was INR 3,314.80 crore versus INR 780.19 crore; revenue from operations was INR 3,058.09 crore versus INR 614.62 crore.

• Consolidated total expenses reached INR 4,884.95 crore versus INR 1,961.29 crore, including INR 4,151.88 crore of other expenses.

• Consolidated loss from continuing operations was INR 1,599.09 crore versus INR 619.73 crore; loss for the year was INR 1,604.34 crore versus INR 899.64 crore.

• Standalone revenue from operations was INR 2,987.41 crore versus INR 598.33 crore; standalone loss for the year was INR 1,490.47 crore versus INR 879.63 crore.

Outlook and guidance

• Management was cautiously optimistic on the external environment and expected consumer demand to become more consistent and robust in ensuing financial years.

• Priorities included productivity, technology investment, customer engagement, loyalty programs and customer experience, with management citing encouraging results from initiatives.

• Management expected stronger turnover from payments banking, insurance, travel ticketing, hotels and mobile wallet services, and said policy measures could support revenue and margins.