onmobileMobile VAS company OnMobile Global reported a 10% decline in net profit, at Rs 84 million, despite an increase in net sales, which rose by 6% to Rs 944 million on a standalone basis for the quarter ended March 31st, 2009. Profit rose by 56% on a year on year basis from Rs 118 million and net sales rose by 40% from Rs 673 million in Q4-08.

The company has also reported a 49% growth in net profit to Rs 707 million for the fiscal year 2008-09, up from Rs 476 million for 2008. Earnings per share (basic) fell by 9% to Rs 3 from the third quarter and rose by 60% on a year on year basis.

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On a consolidated basis, OnMobile reported international revenues of 23% of total revenue as compared to 15% for last year. Importantly, revenue concentration from top 5 Operators down from 77% in the last financial year to 70% during the current year.

According to the company, their direct costs were higher in FY09 because of higher content costs, and higher payouts for media and initiatives in mobile marketing business

The full year consolidated financials include the revenue and costs of Telisma, which was acquired on 1st July 2008.

Details: Consolidated Financials | Standalone Financials | Highlights

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Content Costs

Royalty and content fees rose by 34% to Rs 185 million in Q4-09 from Rs 138 million recorded the previous quarter. It has almost doubled from the corresponding quarter last fiscal when it was Rs 62 million. This is probably due to payouts related to ringbacktone subscriptions, and the content deal that OnMobile did with SIMCA. We wonder how much content sales added to OnMobile’s topline.

New Customers

During the quarter, OnMobile has signed an agreement with:
— Vodafone Global to deploy its products in emerging markets. Please note that we’ve contacted OnMobile for the details of this deal – is Vodafone going to replace existing deployments with OnMobile? Which countries are a part of this deal? Or is this just recognition of OnMobile as a “preferred vendor”, in which case it doesn’t have any revenue implications.
— Two Indian operators to provide its voice portal and ringback tones.
— An operator in India to launch Person-to-Application SMS service.
— It is in the final stages of deploying ringback tones for an European operator
— Four operators in Bangladesh for IVR, Phone back-up and Subscription products.
The companys new customers in Asia Pacific, Europe and Latin America.

Products

OnMobile’s product developments during the year include:
– Music Search, which uses Telisma’s Speech Recognition solution.
– It launched Onmobile Developer Network.
– Four new foreign language models.
– MRadio for two operators outside India

Press (*) To Copy Issue

During the year, OnMobile Enabled Press (*) To Copy ringback service between four operators in India. However, following the TRAI directive limiting its usage, Onmobile has said that they will, along with other VAS providers, approach the regulatory body to consider alternate implementation methods regarding both this service, and Outbound Dialer. The company will be implementing the directive by June 10th. Our take on the directive here.

Corporate Developments
— Sanjay Uppal was appointed as the President and Chief Operating Officer during the year
— OnMobile has set up branches in South Africa and Nepal during the year
— OnMobile Europe B.V. Netherlands, a wholly owned subsidiary, was incorporated with an investment of Rs.12 lakhs. Shareholding of VoxMobili SA and Telisma SA was transfered to OnMobile Europe B.V.

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