Malaysia-based Capital A‘s digital arm MOVE Digital has posted MYR 137.8 million ($31.96 million) in revenue in the second quarter ended June 30, 2024.

Capital A said in a statement on Thursday that AirAsia MOVE, its integrated online travel agency (OTA), continuing as a significant contributor.

This is evident from the improved conversion rates across all verticals- travel, rides, and stays.

AirAsia MOVE generated quarterly revenue of MYR 128 million ($29.69 million), declined by 25 percent year on year.

It posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of MYR 19 million ($4.41 million) during the quarter.

The revenue decline was primarily due to the cessation of commissions from offline travel agents since January this year.

Additionally, AirAsia MOVE has been spending efforts in technology updates during the first half of the year, which necessitated the group to temporarily distribute AirAsia flights on other channels.

This created an intense competition environment but improvements are anticipated in the second half of 2024.

Meanwhile BigPay encountered temporary setbacks in topline growth, as it focused on refining its business model and cutting costs to improve its financial performance.

Its second-quarter revenue reached MYR 9.8 million ($2.27 million), with a negative EBITDA of MYR 18.8 million ($4.36 million).

As BigPay doubled down efforts towards achieving EBITDA profitability, further cost cutting is expected in the coming quarters.

On the revenue side, BigPay is focus 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).

Building upon the recent launch of BigPay Lite, BigPay aims to rapidly acquire new customers and grow volumes sustainably.

It will also be disciplined on costs while continuing to innovate with new and expanded product offerings in the coming quarters.

“Our immediate focus is to prioritize the completion of our app’s front and backend enhancement, a technological overhaul designed to elevate customer experience and improve conversion rates,

“Capitalizing its direct access to AirAsia flights inventory, AirAsia MOVE will intensify marketing efforts through campaigns such as Mega Sales and Flyday Flash sale to further boost user acquisition and conversion,” said Nadia Omer, Chief Executive Officer of AirAsia MOVE.

According to her, AirAsia MOVE currently contributes 40 percent to AirAsia’s overall distribution channel and aims to increase this to 60 percent by the end of the year.

“AirAsia flight (Travel) conversion rates have risen to 8.7 percent and we are actively promoting cross-selling activities to increase hotel bookings (Stays), leading to a 46 percent year on year increase in hotel bookings for the second quarter,” she said.

The completion of Rides has also improved by 2 percentage points year on year, she added.

Overall, she said AirAsia MOVE is making significant strides and progressing effectively towards its goals.

“In a move to strengthen its position and market share in the online travel agency (OTA) landscape, AirAsia MOVE is actively pursuing preferential fare classes and exclusive airline partnerships to bolster competitive advantage,

“We are thrilled to announce the relaunch of our duty-free services and take over inflight duty-free operations in July,” she said.

Additionally, she said the firm’s new fintech product, Easy Cancel is set to launch in September 2024.

This add-on feature allows customers to cancel their tickets and receive a full cash refund.

“A major highlight to our strategy is the deepened collaboration between AirAsia MOVE and BigPay where BigPay will become the primary payment option at checkout,

“This integration represents a substantial advancement in our digital ecosystem, offering a seamless and efficient payment experience that will drive significant growth and operational synergies between the companies,” she added.

MOVE Digital’s revenue drops in first quarter due to declining AirAsia flights sale