Parent company of fintech giant Paytm, One97 Communications, on Friday reported that its consolidated loss had widened to Rs 840.1 crore for the quarter ended June 30, 2024 (Q1FY25).

Notably, this was significantly higher than the Rs 358.4 crore loss reported in the same period last year.

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The firm’s revenue from operations declined by 36% to Rs 1,502 crore from Rs 2,342 crore in the year-ago period.

The total income came to Rs 1,639.1 crore, a 33.5% decline from Rs 2,464.2 crore reported during the corresponding period last year.

Company’s Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) loss standing at Rs 792 Cr. EBITDA before ESOP stood at loss of ₹545 Cr, as stated previously.

For the company, the full financial impact of the recent disruptions is visible in Q1 FY2025. The company also stated that revenue and profitability will improve, with growth in merchant payment operating metrics including GMV, accelerated merchant reactivation and growing merchant base, along with continued focus on cost optimisation.

Revenue from financial services amounted to ₹280 Cr, while revenue from marketing services was ₹321 Cr. During the quarter, contribution profit was at ₹755 Cr, with a 50% margin, the company said in its quarterly results.

Paytm said it expects net device merchant additions to reach previous run rates by Q3FY25.

The company said that new merchant signups on its platform reached January 2024 levels. Further, accelerated efforts towards redeploying devices from inactive to new merchants have resulted in an increase in merchant subscriber (or device merchant) base to 1.09 Cr.

Paytm highlighted that its total monthly transacting user base has stabilised at ~7.8 crore by the end of June, highlighting strong user affinity for Paytm’s platform and retention. Paytm further added that it is awaiting permissions to onboard new UPI consumers, which will result in further growth of its MTU base.

The company also said that it will focus on leading the market with merchant payment innovations, including introducing new devices and aggregation of various merchant discount rate (MDR)-bearing payment instruments.

The company will allocate more resources to Insurance distribution and Mutual Fund distribution, which offer large monetisation opportunities, it added.