MoneyOnMobile said that its quarterly transaction value declined to $109 million during the quarter ended December 31st, 2016 (Q3FY17). This signifies a decline of 50% Year-on-Year (YoY) from $216 million in Q3FY16 and a decreased of 22% Quarter-on-Quarter (QoQ) from $140 million in the preceding quarter. Net Revenue stood at $0.97 million during Q3FY17, down 39% YoY from $1.61 million revenues in Q3FY16. The gross profit stood at $0.58 million during the quarter, down 34% YoY from $0.89 million in the same quarter last year. Quarterly Gross profit Margin stood at 59% during the quarter, up from 55% in the same quarter last year. Note that MoneyOnMobile is currently retooling its business model in the country and focusing on transactions which have higher margins. This has resulted in lower processing volumes and revenues. CEO Harold Montgomery explained in an analyst call that the company will be focusing domestic remittances, cash-out and card purchases. "So we have two basic ways of charging for transactions. There are those transactions for which we charge a percentage of volume and an example would be prepaid mobile time, known as mobile top up in India, topping up your prepaid mobile account. We get about 1% of the transaction value as our revenue. For domestic remittance, on the other hand, we charge a fixed fee per transaction regardless of the size of the transaction," Montgomery added Mobile ATMs: The company launched mobile ATM devices across physical stores in the country in November last year. By the end of January 2017,…
