paytm q3fy24 earnings update: Paytm Q3 Results: Loss narrows to Rs 220 crore; revenue jumps 38% YoY

Digital payments major Paytm on Friday reported that it has narrowed its losses to Rs 220 crore for the quarter ended December 2023, compared with Rs 290 crore in the preceding September quarter and Rs 392 crore in the year-ago quarter.

Revenue from operations in the third quarter jumped 38% to Rs 2,850 crore as against Rs 2,062 crore in the corresponding quarter of the previous year.

EBITDA (before ESOP) improved during the December quarter to Rs 219 crore, with a margin of 8%. Contribution profit, meanwhile, rose 45% year-on-year to Rs 1,520 crore.

The solid revenue show is due to accelerated GMV growth, higher device addition, and growth of financial services business. This was partly boosted by the delay of festive season into the third quarter.

GMV during the reporting period rose 47% year-on-year to Rs 5.1 lakh crore. It was Rs 3.5 lakh crore in the same period last year.

Segment wise, revenue from the payment services business was up 45% year-on-year to Rs 1,730 crore. Net payment margin has shot up 63% year-on-year to Rs 748 crore due to increase in payment processing margin and in merchant subscription revenues.

The company said payment processing margin was in the range of 7-9 during the quarter under review (without UPI incentives booked in Q3).Merchant paying subscription for devices has reached 1.06 crore, as of December 2023, an increase of 49 lakh year-on-year.

(Subscribe to ETMarkets WhatsApp channel)

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.