India’s Oyo hotels report positive core earnings for the first time

The logo of OYO, India’s largest and fastest growing hotel chain, is seen on a hotel building in New Delhi, India April 3, 2019. REUTERS/Adnan Abidi/File Photo

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BENGALURU, Sept 19 (Reuters) – India’s IPO-linked Oyo Hotels reported positive core earnings for the group for the first time, thanks to a rebound in travel demand that fueled bookings, a filing from the SoftBank Group-backed hotel aggregator (9984.T) showed Monday. .

Oyo’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the first quarter amounted to 72.66 million Indian rupees ($911,668.76), the company disclosed in an addendum to its filing for an initial public offering (IPO).

Last year, the hotel booking startup officially known as Oravel Stays said it had suffered net losses every year since its incorporation and its ability to reach profitability could be delayed due to the economic fallout from the pandemic.

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The group’s filing on Monday showed the net loss narrowed to 18.92 billion rupees for the year ended March, from 33.83 billion rupees in 2021.

Gross booking value (GBV) was Rs 24.87 billion for the quarter ended June and Rs 81 billion for FY2022, up 22% from a year ago .

Oyo’s IPO will consist of a new share issue of up to Rs 70 billion and a sale offering of up to Rs 14.30 billion, according to its IPO filing.

($1 = 79.7000 Indian rupees)

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Reporting by Rama Venkat in Bengaluru; Editing by Devika Syamnath

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