One97 Communications commerce turns operationally profitable: Analyst

Financial services firm One97 Communications' commerce vertical has turned profitable at the operational level, an analyst said after the company's earning call.

One97 Communications, which owns the Paytm brand, has set a target to post operating profit by September 2023.

"In the commerce business, the company makes sure that cash back incentives are not more than margins. This business has also turned profitable at the operating level," ICICI Securities analyst Kunal Shah said in the email summarising takeaways from Paytm's earnings call.

Commerce and Cloud Services offerings of Paytm primarily include advertising, ticketing and deal vouchers.

Paytm has reported 55 per cent year-on-year growth in Commerce and Cloud revenues at Rs 377 crore, with commerce revenue increasing 49 per cent y-o-y due to higher ticketing sales, while Cloud revenues were up 58 per cent as advertising revenues started recovering and credit card revenues continue to scale.

"The change in promotional and ..