Paytm Hits Jackpot: ₹930 Crore Q2 Profit Thanks to Ticketing Business Windfall! - Read Now
The parent company of Paytm, One 97 Communications Ltd, reported a stellar turnaround in its finances - the company has registered an operating profit of ₹930 crore on a consolidated basis for the September-end quarter of 2024. The company had incurred a loss of ₹290 crore during the second quarter of the preceding fiscal. This was primarily contributed to by the gains derived from selling off its ticketing business to Zomato.
Revenue from operations declined 34% year-on-year to ₹1,659 crore but rose nominally from ₹1,501 crore from the previous quarter. Profit aside, Paytm still lags; without the gains from sale, the company posted a loss of ₹495 crore for the quarter and that was up 70% from last year's comparable period. However, this loss represents a decrease of 41% from the ₹840 crore loss reported in the previous quarter.
Then, finally, on August 21, 2024, Paytm inked definitive agreements with Zomato to divest its movie ticketing and events business along with two of its wholly owned subsidiaries for all-in consideration of ₹2,048 crore. The sale resulted in huge gains of ₹1,345.4 crore in the entire deal, which was presented as an "exceptional item" in the company's financials and had added to the company's surprise profitability for the quarter.
Of course, the positive side is that it can sell a unit during its period of declining core operations revenues. Investors and analysts watch how the company moves ahead through this sale to strengthen its market position and enhance service offerings.
The growing adjustments in its business strategy along with selling non-core assets at Paytm ensure that it will be able to navigate its own way toward sustainable growth within the ever-competitive and dynamic landscape of digital payments.