Airasia MOVE, the travel, lifestyle and financial digital platform of Malaysia-based Capital A, has posted quarterly revenue of MYR 171 million ($36.59 million), up 68 percent year on year.
Capital A said in a statement on Thursday that the unit also posted an aarnings before interest, taxes, depreciation, and amortization (EBITDA) of MYR 11.7 million ($2.5m), primarily driven by travel (flights and hotels) and rides segments.
In an effort to boost demand in a typically slower quarter, airasia MOVE ramped up its flight marketing initiatives, which led to a rise in operating expenses for the period.
“We are prioritizing the development and execution of a strategic plan that emphasizes cost restructuring and operational efficiency, cutting out smaller businesses to focus on core businesses around the travel segment with the return of global travel,” airasia MOVE Chief Executive Officer Nadia Omer said.
“Leveraging the solid foundation laid by flights and hotels, we are now amplifying the potential of our hotel business, with the vision of going beyond mere market participation but becoming market leaders,
“The expansion and enhancement of our hotel services are critical steps towards establishing airasia MOVE as the go-to Online Travel Agency in the Asean region,” she added.
According to the statement, e-wallet BigPay’s quarterly revenue rose by 30 percent year on year to MYR 11.1 million ($2.38 million), narrowing its EBITDA loss by 33 percent year on year to MYR 22 million ($4.71 million).
The revenue growth was seen across all core product sectors, with payments climbing by 21 percent, remittances by 40 percent, and marketplace sales surging by 167 percent year on year.
Efforts were also made to better integrate BigPay within airasia MOVE to access a wider customer base, thus boosting sales and widening service offerings.
Meanwhile, the group’s logistics venture Teleport’s quarterly revenue grew by 71 percent year on year to MYR 189 million ($40.45 million) but incurred an EBITDA loss of MYR 3.7 million ($790,000), attributed to one-off induction costs of the freighter to its fleet mix.
E-commerce segment recorded an average of 80,000 daily deliveries, equivalent to a 171 percent year on year growth despite continued industry headwinds.
Teleport continued to unlock end-to-end operational capabilities to better serve its e-commerce customers and to continue scaling recurring growth in the coming quarters.
Volume growth is also attributed to capacity injection across Teleport’s extended network with the induction of Awan, its first of three A321F freighters, as well as added capacity via its partner airlines such as UPS and SF Airlines.
“Teleport has delivered significant quarter on quarter volume growth, with tonnage up 27 percent and e-commerce parcel growth up 50 percent, respectively. This is despite challenging the market backdrop,
“While industry outlook is poor, Teleport is winning; operating on the back of a highly favorable cost structure built on a valuable combined belly and freighter network and an end-to-end model,” Teleport Chief Executive Officer Pete said.
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