Core Insights - ly.com demonstrated significant growth in Q1 2025, with revenue reaching RMB 4.377 billion, a 13.2% year-over-year increase, and adjusted net profit of RMB 788 million, up 41.1% YoY, indicating strong demand in the mass-market tourism sector [1][2][4] Operational Performance - Revenue from the online travel platform segment grew by 18.4% YoY to RMB 3.792 billion, accounting for approximately 86.6% of total revenue, driven by accommodation booking services and transportation ticketing [4][5] - Adjusted EBITDA reached RMB 1.159 billion, reflecting a robust business mix and multi-dimensional expansion [2][4] Business Developments - ly.com is focusing on mass-market tourism, targeting consumers in non-first-tier cities, which represent a significant growth opportunity, with 87% of registered users from these areas [9][11] - The company has integrated AI capabilities to enhance operational efficiency, reducing labor costs by 20% and improving user experience through personalized travel planning [16][17] Strategic Insights - The mass-market tourism sector is experiencing segmentation and diversification, with a growing demand for differentiated travel experiences among various consumer groups [20][21] - Outbound tourism is expected to drive future growth, particularly from non-first-tier cities, as ly.com enhances its international offerings and partnerships [7][23]

Financial Data and Key Metrics Changes - The company reported a net revenue of RMB4.4 billion, representing a 13.2% year-over-year increase from the same period in 2024 [26] - Adjusted net profit reached RMB788 million, reflecting a 41.1% year-over-year growth, with an adjusted net margin of 18% compared to 14.4% in the same period of 2024 [26] - The core OTA business revenue grew by 18.4% year-over-year, totaling RMB3.8 billion, driven by growth in accommodation reservation and transportation ticketing [26] Business Line Data and Key Metrics Changes - Transportation ticketing revenue was RMB2.0 billion, a 15.2% increase year-over-year [26] - Accommodation reservation business achieved RMB1.2 billion, representing a 23.3% increase from the same period in 2024 [27] - International accommodation business saw over 50% growth year-over-year in room nights sold [17] Market Data and Key Metrics Changes - The outbound travel segment accounted for more than 5% of total transportation ticketing revenues, marking a year-over-year increase of three percentage points [27] - The number of hotels in operation totaled over 2,500, with more than 1,400 in the pipeline [18] - The annual paying user count reached a historical high of 247 million, with cumulative travelers served achieving 1,496 million [21] Company Strategy and Development Direction - The company aims to deepen its domestic market presence while accelerating the expansion of its outbound travel business [7] - Plans to acquire Wanda Hotel Management Company were announced, which is expected to enhance the company's influence within the hotel management sector [11] - The company is committed to technological advancements, integrating AI into business operations to improve service quality and efficiency [8] Management Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term prospects of China's travel industry, supported by government initiatives and changing consumer preferences [11][30] - The company is focused on enhancing user value and driving technological iteration to improve service efficiency [10] - Management expects continued growth in the travel industry, with a focus on diverse travel preferences and experiences [30] Other Important Information - The company has been recognized for its ESG performance, being included in the S&P Global Sustainability Yearbook China for the third consecutive year [24] - The standalone app has shown strong growth, with daily active users increasing by nearly 60% year-over-year [19] Q&A Session All Questions and Answers Question: Growth pattern of core OTA business in upcoming quarters - Management highlighted the resilience of the Chinese travel market and expects steady growth with healthy profitability, focusing on enhancing ARPU and optimizing marketing investments [35][37] Question: Forecast for outbound business growth and its contribution to total revenue - The outbound travel segment has shown remarkable growth, with international room night sales and air ticketing volumes increasing by over 50% year-over-year, expected to be a key growth driver [45][48] Question: Impact of AI agent DeepTrip on user engagement and future features - DeepTrip is still in early adoption stages, with innovative features being integrated to enhance user experience and engagement, expected to grow organically over time [49][51] Question: Update on standalone app performance and its contribution to revenue - The standalone app has seen significant user growth and is expected to continue contributing to overall revenue, with a focus on enhancing user engagement and ARPU [55][58] Question: Macro uncertainties and their impact on travel demand - Despite macro uncertainties, management remains optimistic about the travel industry's growth, citing strong consumer demand and positive trends in pricing [64][66] Question: Rationale behind the acquisition of Wanda Hotel Management - The acquisition is seen as a strategic move to enhance the company's hotel management capabilities and market presence in the luxury segment, leveraging existing user insights and technology [68][70]

Summary of the Conference Call Transcript Company and Industry Overview - **Company**: MakeMyTrip (MMYT) - **Industry**: Online Travel Agency (OTA) in India Key Points and Arguments Passenger Traffic Trends - Domestic passenger traffic increased by 2% month-over-month (MoM) in April 2025, following a 6% decrease in March 2025 and a 5% increase in February 2025, indicating seasonal fluctuations [2] - Year-over-year (YoY) growth for domestic traffic normalized to approximately 10% in April 2025, compared to 15-16% in the previous months [2] - International passenger traffic rose by 6% MoM in April 2025, with a healthy YoY growth of 12%, up from 6% in March 2025 [2] Impact of Military Conflict - Both domestic and international passenger traffic were negatively affected by military conflict starting April 22, 2025, with domestic traffic down 20% and international traffic down 3% [2] - Management noted improvements in bookings following a ceasefire announcement on May 10, 2025, suggesting a potential recovery in traffic [2] Competitive Landscape - MMYT maintained a dominant position in app downloads, with a 9 percentage point (pp) increase in share to 45% in April 2025, while competitors IRCTC and OYO saw declines of 2pp each [4] - Monthly Active Users (MAU) for MMYT increased by 1pp to 49%, while IRCTC's share decreased by 70 basis points (bps) to 26% [22] Web Traffic and Search Interest - MMYT led web traffic with 72 million visits in March 2025, a 15% YoY increase, significantly surpassing competitors [5] - Google search interest trends indicated continued dominance for MMYT, reflecting strong brand recognition and consumer interest [30] International Travel Demand - Recent news highlighted increasing demand for international travel, with new flight routes being established, such as Indigo's new service from Visakhapatnam to Abu Dhabi starting June 13, 2025 [6][33] - The resumption of operations from previously closed airports due to military conflicts was also noted, indicating a recovery in travel infrastructure [6] Company Outlook and Ratings - UBS maintains a positive outlook on the OTA sector, with a "Buy" rating on MMYT and a price target of US$135 [6] - Risks to MMYT's long-term estimates include potential economic slowdowns, increased competition, and the impact of COVID-19 on travel recovery [38][39] Additional Important Information - The report utilized data from UBS Evidence Lab, which provides insights into app usage and competitive analysis within the OTA sector [36] - The analysis indicates that while MMYT faces competition, it continues to outperform in key metrics such as downloads, MAU, and web traffic [4][5][28] This summary encapsulates the critical insights from the conference call, focusing on MMYT's performance, competitive positioning, and market dynamics within the Indian OTA industry.