OnMobile Posts Net Profit of Rs 204.2 M; Content Costs Up 18.5%; 6 Apps On Developer Network

By Preethi J on Jan 30th, 2009 |

5 Comments

Note: We’re on the OnMobile Conference Call for the next hour. If you have any questions, please mail us at nikhil@medianama.com

Mobile value added services company OnMobile has registered a 17 percent rise in net profit in Q3 of 2009 to Rs 204.2 million on a QoQ basis. Standalone revenues rose by 12 percent from Rs 793.5 million in the previous quarter to Rs 888.2 million. Expenditure rose from Rs 601.6 million to Rs 651.4 million. On a consolidated basis, OnMobile posted a 50 percent growth in net profit at Rs 276.4 million in the third quarter. Total revenue rose by 19 percent to Rs 1157.2 million over the last quarter. Consolidated EBITDA stood at Rs 405.3 million.

Content costs continue to rise for OnMobile, up by 18.51% quarter on quarter, and 138% year on year. Interestingly, on the earnings conference call, OnMobile confirmed a story that we had reported in July 2008 – that they have done a content deal with SIMCA, among others. This explains the rise in the content costs.

OnMobile has won the order to provide VAS services to another GSM operator in India, has started deployment of the first RBT customer in Europe, signed a contract with an operator in Bangladesh for IVR, OBD and Subscription services, a contract with an operator in Bangladesh for Phone backup services and IVR services with another Operator in Indonesia. The company has also launched voice based Music Search with Airtel, using Telisma’s Speech Recognition. Remember that OnMobile had paid Rs. 843.7 million for the company.

q309 snapshot onmobile

The company also launched 6 applications on its OnMobile Developer Network, and has deployed one application with a mobile operator. The company spent Rs 118.9 million from the proceeds of its IPO in this quarter for the purchase of equipments for offices at Bangalore, Mumbai and Delhi, working capital requirements, loan repayments and other general corporate purposes. (With inputs from Nikhil Pahwa)

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Category : Earnings, Internet, Mobile, OnMobile Global | Tags : 2009-Q3, Mobile Data Services, OnMobile Global, VAS

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http://intensedebate.com/people/VASGuy VASGuy

Way to go !
Onmobile shining star of India's VAS industry. No one can match them and create a worthwhile competition.
http://intensedebate.com/people/NikhilPahwa Nikhil Pahwa

Another VASGuy (without a login like the one above) had left the following note, which we removed because it accused a specific company of unfair trade practices. I'm reproducing the comment with the company name blanked out. Please refrain from accusing specific companies – we as a platform may be held liable for such comments, and that is a risk that we will not take.

VASGuy's Comment:

On another note, very amazed to see the rise in royalty payouts and content costs of OnMobile. Nearest competition ************* has been far famous in the industry for Under-reporting, non-payments to vendors and similar stuff. Probably the day (god knows when) it goes public, industry would see a real picture of its content costs and vendors would be the most happiest at that point of time.

God save the vendors from ************* till then!
Pawan( finance )

ONMOBILE Share will go on 700 in next two or three days because A Raja again come.
Raju ( financer )

yes because budget is coming and there are more benifit for this so it will go up 700 till june end.
http://www.ryatechsoftware.com Aune Ahmad Asad

It is indeed true Onmobile is going great, but at the same time it is prejudge that no one can compete.

Market and customer never remains same. You might have feel with many great gun has failed to sustain in market.

OnMobile Posts Net Profit of Rs 204.2 M; Content Costs Up 18.5%; 6 Apps On Developer Network

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