Spice Mobility’s devices business continues to face losses, although at a lower rate: the segment posted a net loss before tax of Rs 3.64 crore for the quarter ended 31st December 2016, compared to a loss of Rs 24.53 crore in the same quarter last year, and Rs 5.74 crore in the previous quarter.

Total revenues of the company stood at Rs 264.12 crore, with the devices business accounting for 73.12% of its total revenues. Net loss for the period stood at Rs 6.96 crore, down from Rs 23.1 crore in the same quarter last year, although up from Rs 4.59 crore in the previous quarter.

Other than the devices business, Spice Mobility runs Spice Retail, a retail and accessory chain,  Spice Digital, a subsidiary that offers mobile value added services, apps and other online products to enterprises, telecom operators, Government agencies etc., and Spice World and Spice Studio, a mall and a film production company respectively. Spice Digital, included in its services business, also has a semi-closed pre-paid payment wallet license.

Services business: The revenues from Spice Mobility’s services business increased by 11.78% to Rs 71.69 crore from 64.14 crore in the previous quarter and 14.1% from Rs 62.84 crore in the corresponding quarter last year. The segmented reported a profit of Rs 1.94 crore down from Rs 3.5 crore in the previous quarter, but up from Rs 1.54 crore in the same quarter last year. Services business represented about 27.1% of Spice Mobility’s revenues for the quarter.

Spice has been pushing to increase the revenue share of its more profitable services business, which represented about 21% of the company’s revenues three months back (Q2 FY17). Last month, Spice Money, the domestic remittance service from Spice Digital, started processing payments over the Aadhaar Enabled Payment System (AEPS). Note that Spice Digital also has a wallet licence from the Reserve Bank of India and launched a service called Spice Mudra in September 2015.