Oyo reports its first EBITDA positive quarter, reduces FY22 losses

OYO, the Softbank-backed hotel aggregator, has reported an EBITDA of Rs 7 crore (around $1 mn) adjusted for the first quarter of FY23 and driven by an increase in gross booking value (GBV) and improved unit economics.

EBITDA margins increased marginally by +0.5 per cent in Q1 FY23, from -44 per cent in FY21 and -9.9 per cent in FY22. Oyo said it filed the addendum to the draft red herring prospectus (DRHP) on September 19 for its initial public offering (IPO).

The company said its FY22 revenue came in at Rs 1,459.3 crore, a growth of 18 per cent from Rs 4,157.3 crore last year. For the latest quarter (April-June), the company reported revenue of Rs 1,504.5 crore.

Oyo reported a loss of Rs 1,939.8 crore for FY22, down from Rs 3,944 crore in FY21. For the June ended quarter losses were at Rs 413 crore.

The biggest shift in the financials appears to be in the monthly gross bookings value per hotel, with a 47 per cent growth in Q1 FY23 to Rs 3.25 lakh vs Rs 2.21 lakh for FY22. The filing attributes this to the recovery in travel demand due to the easing of travel and domestic movement restrictions in the markets where it operates. The vacation homes business monthly gross bookings per home have also improved marginally to Rs 39,000 in the first quarter of FY 23.

Emerging from the impact of Covid-19, Oyo’s revenue from operations increased 21 per cent to Rs 4,781.4 crore in FY22 from Rs 3,961.6 crore in FY2021 due to a recovery in travel demand as restrictions on movement lifted across key markets. The revenue growth momentum seemingly continued with Q1 FY23 revenue being reported as Rs 14,593 million.