afaqs! news bureau

Zomato reports 8.2% YoY increase in ad spends for Q3FY24

The food aggregator spent Rs 317 crore in advertisement and sales promotion for the quarter ending December 31st.

As per Zomato's Q3FY24 results, it spent Rs 317 crore on sales promotion and advertising in Q3FY24. This marks an 8.2% increase in ad spends over the same quarter from previous fiscal year, where the food aggregator spent Rs 293 crore.

The brand also registered a 4.6% quarter-on-quarter increase in ad spends. The consolidated advertising and sales promotions expenditure stood at Rs 374 crore.

Also, its quick commerce platform, Blinkit's ad revenue grew at double the pace of GOV (gross order value) up 220% YoY in Q3FY24 as compared to 103% YoY GOV growth.

Zomato posted a third straight quarter of positive profitability, reporting a net profit of Rs 138 crore for the October–December period. Revenue reached Rs 3,288 crore, up 69% YoY, despite declining e-commerce demand and high inflation.

Even though shipping costs increased by 63% to Rs 1,068 crore in Q3, the company was still able to keep growth in advertising and promotional spending under control. Zomato made Rs 1,948 crore in revenue and had a net loss of Rs 347 crore the previous year.

Restaurant orders increased during the men's cricket World Cup, held from October 5 to November 19. This improved Zomato's top line, especially during the holidays when they bring in the majority of their annual revenue.

Its strong performance in the third quarter has been attributed to increased demand during the Cricket World Cup and the festive season.

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