Paytm Sails to Profit with Strategic Divestments

One97 Communications, Paytm's parent, achieved a net profit of Rs 928.3 crore in Q2 2024, reversing last year's loss. An exceptional gain from selling its entertainment ticketing business to Zomato aided the results. A focused strategy on payment and financial services is set to drive future growth.

Paytm's parent company, One97 Communications, has posted a remarkable turnaround in its financial performance, reporting a net profit of Rs 928.3 crore for the second quarter of 2024. This compares to a loss of Rs 290.5 crore in the same period last year, markedly buoyed by a strategic divestment.

The significant uptick in profit is primarily attributed to an exceptional gain of Rs 1,345 crore following the sale of its entertainment ticketing business to Zomato. Despite a year-on-year revenue decrease of 34.1%, the fintech firm's focus on sustainable growth in its payments and financial services segments remains steadfast.

Enhancements in merchant subscriptions and a reduction in operational costs further underline Paytm's robust quarterly performance. Moving forward, the company plans to enhance its compliance measures, innovate in merchant payments, and expand its financial services partnerships.

(With inputs from agencies.)