AirAsia MOVE, the superapp of Malaysia-based Capital A, saw its overall monthly active users (MAU) down by 13 percent year on year to 13.01 million in the second quarter.

Capital A said in a statement on Thursday that the number of transaction for the platform also declined by 46 percent year on year to 4.29 million in the second quarter.

Its gross booking value, on the other hand, fell 33 percent year on year to MYR 2.26 billion ($484.97 million).

According to the statement, flights overall transactions are down due to value challenges within the over-the-air (OTA) landscape.

In response, AirAsia MOVE is enhancing its fare tracking system and driving targeted promotions to regain competitiveness with recovery to be expected in the third quarter of 2024 and getting back to 2023 level by the first quarter of 2025.

Conversely, hotels is on a strong trajectory, posting a 33 percent year on year growth mainly attributed to improved personalization and inventory.

Meanwhile, airport rides bookings are down by 10 percent year on year, but completion rate has improved by 2 percent year on year.

Moving forward, AirAsia MOVE is focusing more on demand generation and improving the driver app.

Rewards net revenue, on the other hand, grew by 45 percent year on year on the back of higher points issuance and improved redemption rates of points.

To grow, AirAsia MOVE focuses on onboarding more external partners to join the rewards program.

It is noted that AirAsia MOVE has transitioned this year from being a super app that offers grocery shopping and food delivery to become a travel platform.

The platform aims to be ASEAN’s favorite travel companion, creating inclusive and delightful journeys for users, and the focus is to grow flights, hotel, airport rides as well as building duty free and activities products.

To achieve these goals, Capital A said its priority is to grow the app user as it provides a higher lifetime value.

Meanwhile, Capital A’s fintech arm BigPay has reported a positive trend in user acquisition with a steady 10 percent year on year growth in quarterly carded users, reaching 1.55 million.

It is noted that 36 percent of the new users this quarter was acquired through AirAsia MOVE, a positive outcome from the close collaboration initiatives between the entities.

As BigPay doubled down efforts to achieve earnings before interest, taxes, depreciation, and amortization (EBITDA) profitability, it has focused on building (and nudging users towards existing) features with positive unit economics.

This resulted in a 16 percent year on year increase in the annualized average revenue per user (ARPU).

With a focused approach to achieve profitability, BigPay focused on growing transactions on its AirAsia closed-loop and QR products, while rebalancing the corridor mix of international card payment transactions to strategically reduce unprofitable gross transaction value (GTV).

This segment saw a 28 percent year on year decrease in the overall GTV.

Despite challenges in weak currency, the GTV for international remittances showed a growth of 3 percent compared to the prior quarter with targeted marketing efforts.

On the other hand, domestic remittance showed a promising growth of 17 percent year on year, driving the overall GTV growth of 7% year on year for the quarter.

Value of loan disbursements surged 241 percent year on year as BigPay leveraged alternative data to identify low risk customers, which allows effective creditworthiness assessment and maintains a healthy non-performing loan (NPL) ratio below 5 percent.

Meanwhile, Capital A’s logistics arm Teleport continued to show growth momentum across its cargo and solutions segments in the second quarter, contributed by better optimization of service through the dynamic utilization of capacity from its dedicated freighters and growing partnerships with third party airlines.

With better optimization of its services, Teleport continues to remain asset light while it expands its network reach and improves flexibility in capacity planning, strengthening how it serves both its cargo and ecommerce customers.

While capacity increased 11 percent, its capacity utilization rate continues to improve from 13 percent to 15 percent, reflecting a healthy volume, revenue pipeline and better operating efficiency.

Teleport also delivered over 60,000 tons during the quarter, a 33 percent increase from the same quarter in 2023.

Over 15.3 million parcels were delivered in the second quarter, a 215 percent jump from the same quarter in 2023.

Year to date, Teleport has surpassed its entire 2023 delivery volume by delivering over 30 million parcels in just the first half of 2024.

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