OYO NET LOSS WIDENS 3X IN 2018-19 ON CHINA EXPANSION

MUMBAI: Hospitality firm OYO Hotels & Homes reported widening of its consolidated net loss to $335 million (over Rs 2,390 crore) for the financial year ended March 2019, mainly on account of international expansion during the period.

The company had reported a net loss of $52 million (over Rs 370 crore) for the previous financial year, OYO said.

Its consolidated revenue for 2018-19 stood at $951 million (over Rs 6,785 crore) as against $211 million (over Rs 1,500 crore) in the year-ago fiscal, it added.

"The inherent costs of establishing new markets, including those related to talent, market-entry, operational expenses, among others, resulted in an increase in OYO's net loss percentage in the near term, which grew from 25% in 2017-18 to 35% of revenue in 2018-19, to $335 million," the company said.

At the same time, in mature markets like India, the company reduced its losses from 24% to 14% of revenue in 2018-19 to $83 million, it added.

The business operations in India, a mature market for the company, contributed nearly 63.5% or $604 million to the total revenue as the business clocked a 2.9 times growth y-o-y in the home market, OYO said.

Nearly 36.5% or $348 million was contributed by the company's operations outside India, primarily China, signifying its strong commitment towards building a sustainable global business at scale with improved operating efficiencies, it added.