wordpress blog stats
Connect with us

Hi, what are you looking for?

Q1-10: OnMobile Says TRAI Directive Brought Revenue From Some Telcos Down 10%

Another Quarter of increasing content and royalty costs for BSE listed mobile Value Added Services company  OnMobile Global, as the company reported, on a standalone basis, an 8.2% increase in cost of content quarter on quarter, and a 166.4% increase year on year.

q110-onmobile-content-fee-royalty1

The company also suggests that the TRAI directive on subscription services has resulted in a revenue decline of 10% in some operators. They are, as CEO Arvind Rao had indicated earlier to MediaNama, working on a revised directive.

Details:Investor Conference CallDial in Numbers 3rd Aug 9am | Q1 09-10 HighlightsPublished Results ConsolidatedPublished Results StandaloneStandalone Balance SheetConsolidated Balance SheetInvestments Disclosure

Results

On a standalone basis, Net Profit declined 1.86% year on year and 22.6 percent quarter on quarter to Rs. 142.3 million, though Net Sales were up 36.16% year on year, and down 6.8% quarter on quarter at Rs. 879.1 million. OnMobile has suggested in the past that their results be compared on an annualized basis, since the sales cycle tends to be long, and costs lop-sided. The company now says that Q1 is historically the lowest in terms of revenue and profitability, delivering around 17 to 22% of full year revenues and profit after taxes.

q110-onmobile-snapshot-qoq

OnMobile also suggests that one operator client is going through an internal re-structuring which has impacted revenues for the quarter, while another experienced delays in rolling out their new network, which resulted in deferral of revenues. The company also had to incur third party expenses in this quarter ahead of the Telefonica deal.

q110-onmobile-chart-net-profit-v-net-sales

On a consolidated basis, the company reported net sales of Rs. 986.5 million for the quarter, total revenues of Rs. 1072.4 million, and a total expenditure of 961.5 million. Net Profit was at Rs. 86.7 million. Note that consolidated results are not comparable year on year, since the company incorporated Telisma results July 2008 onwards.

Advertisement. Scroll to continue reading.

Q1 Highlights

q110-onmobile-global-kpi

The decline in net sales both on a standalone and a consolidated basis is a little surprising, given that the subscriber reach, unique users and Active RBT users have all increased quarter on quarter: the number of calls handled remained static, and that is a little surprising.

This performance sheds some light on what CEO Arvind Rao had told MediaNama a few weeks, suggesting that one shouldn’t expect the same rate of growth in India, and also puts into context the importance of two key international deals that the company has struck: with Vodafone and Telefonica. Some key developments

Telefonica Deal: OnMobile has made an initial commitment of EUR 37 Million to start its operations in the Latin American region. (Related: Telefonica Deal Conference Call / Telefonica in Latin America)

New Operator Launches: The company went live with RBT in Europe, following last quarters Vodafone deal, and has also opened an office in Romania. OnMobile also launched Voice Portal and RBT services with a new GSM operator in India.

Android: Two large handset manufacturers have selected OnMobile’s Phone Back-up solution for Android phones. The company claims that their Social Address Book has supassed the 250K download mark in the Google Android Market, and has been lainched in all the subsidiaries of a leading Operator in Europe.

Advertisement. Scroll to continue reading.

MRadio & Life Tools: crossed the 1Million subscriber mark in the SAARC region. The company also partnered with Nokia to launch Life Tools.

Related:

— OnMobile Says Telefonica 5 Year Contract Begins Q1 2010; 23 Services; Music Driven
— OnMobile Ties Up With Telefonica In Latin America; To Invest $50M; Market Data
— OnMobile CEO Arvind Rao Cautious On VAS; Launches With Vodafone In Romania, South Africa
— Q309 Call: Why OnMobile Did The SIMCA Deal; Ad-RBT National Rollout Plan

Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

You May Also Like

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ