Hospitality company OYO’s global expansion, particularly China during FY19 has led an increase its consolidated losses from 25 per cent of revenue in FY18 to 35 per cent in FY19, the company said in its audited financials for FY19. The company had “a primary presence in China and India” in FY19 and the “inherent costs of establishing new markets, including those related to talent, market-entry, operational expenses among others,” led to the net loss increase to “35% of revenue in FY19 to $335 million,” OYO said. However, the SoftBank-backed company was able to cut its losses in India from 24 per cent to 14 per cent of the revenue. The FY18 loss was $52 million signalling an increase of 544 per cent.
OYO’s consolidated revenues for FY19 stood at $951 million with India contributing 63.5 per cent — $604 million to it and 36.5 per cent share — $348 million coming from international markets particularly China. The overall revenue grew 350 per cent from $211 million in FY2018. “As we work towards consistently improving our financial performance, ensuring strong yet sustainable growth, high operational and service excellence and a clear path to profitability will be our key to our approach in 2020 and beyond,” said Abhishek Gupta, Global CFO, OYO Hotels & Homes.
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Source: Financial Express
