Paytm announced its December quarter earnings on 20 January.
Payment giant reports that the net loss in December was Rs 208 crores (approximately $24.4 million) compared with Rs 220 crores for the same quarter last year.
Paytm sold its PayPay Corporation stake to Japan for $280m (Rs2,372 cr). This resulted in an reported profit of Rs388cr.
The company has seen a massive increase in profits since the third quarter of September, largely due to a gain that was made from selling its ticketing division to Zomato.
Paytm’s balance sheet would not have been able to recover without this extraordinary gain.
The company’s digital payments division showed some signs of improvement, especially after the closure of the payments bank.
The revenue for the third quarter dropped 36% to Rs 1,828 crore from Rs 2,850 crore the previous quarter.
On a quarterly basis (QoQ), revenue increased by 10%, due to a growth in gross merchandise value (GMV), subscription revenues and an increase in financial services distribution revenues.
On Monday, shares of the fintech giant were trading at a price of Rs 910.65. This was an increase over 1%.
Paytm revenue breakdown
The total revenue was Rs 1,828 crore. Of this, Rs 1 069 crore was generated by the payment business. This represents an increase of 8% on a quarterly basis. Rs 502 crores were generated by financial services.
Paytm reported that it had 1.17 crore subscriptions from merchants by December 2024. This represents a 5 lakh increase Q-oQ. Revenue per merchant also increased.
It was noted by the company that refurbishing devices inactive and then re-deploying them to new merchants had contributed to a rise in revenue and capital expenditure per merchant.
Paytm’s monthly transacting users (MTUs), on the consumer payment side, increased from 6.8 million in September to 7.2 millions in December 2024. This is after the Reserve Bank of India approved the onboarding of new UPI clients in October.
Paytm’s financial service revenue has been boosted by an increased share of merchant loan, higher trail revenues from the Default Loss Guarantee portfolio and improved collection efficiency.
Paytm customers used its platform to access services such as loans, insurance, equity brokerage, and more.
A significant part of the merchant loan disbursements was under the DLG Model. This is a slight improvement over the last quarter.
Paytm has continued to recalibrate the personal loan business. It is focusing on an exclusive distribution model, and has tightened risk policies with the lenders.
During the third quarter, Rs 1,746 crore was disbursed in personal loans. The company also experienced an increase in interest among lenders for partnering under the DLG Model, both for merchant loans and personal loan. This is expected to lead to increased disbursements as well as expanded partnerships.
As of December 31 2024, the outstanding AUM (amounts due) for DLG Portfolios was Rs 4,244 crores, up from Rs 1,651 crores on September 30 2024.
This article India’s Paytm saw losses shrink to Rs208 billion, and shares ticked up first appeared on The ICD
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