On a consolidated basis, OnMobile Global reported an 15.4% increase in total revenues to Rs. 1.23 billion, compared with Rs. 1.02 billion during Q1 last year; the company also reported 105.8% year-on-year increase in consolidated net profit at Rs. 178.4 million, compared with Rs. 86.7 million during the corresponding quarter last year (Q1-10), but keep in mind that Q1-10 was something of an anomaly for the company, in terms of profitability trends.
The company also said that last quarter, they had benefited from a one-time booking of revenues, without which the sequential growth would have been 5%. In other income line, they had a forex gain of around Rs. 21 Mn in this quarter on account of favourable currency movements.
Products & Ops: During the quarter, OnMobile registered new offices in Venezuela and Brazil to expand their Latin American Operations. The company has services live in two countries in Latin America now, and says that results are better than expected. They also launched Music Radio services in two operators in the Asia-Pacific region last quarter, and launched Telisma’s speech recognition and IVR solution for a large retail chain in partnership with a large Telco in Europe. The company also launched the OnMobile Futbol product across SMS and WAP, and deployed it in the LATAM market across 12 Countries.
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During the quarter, OnMobile said that they won back the VAS contract it had with an Indian operator, which they had lost in the last quarter. That operator – which we believe is Reliance Communications – used to contribute 5-10% to OnMobile’s topline. Services were launched at the end of Q1-10, so there is no material impact on revenues yet.
Financials: OnMobile exects its effective tax rate to be significantly lower in this financial year since they’re deploying assets in their newly formed Special Economic Zone (SEZ) unit, which will result in the non- recognition of deferred tax liability. On a standalone basis, the company reported a 22.2% increase in net profit year-on-year, at Rs. 173.9 million, on a 20.9% increase in total revenue. The company reported a total revenue of Rs. 1.06 billion on a standalone basis. Telecom VAS revenue for OnMobile was up 20.9% year on year and 3.3% quarter on quarter, at Rs. 1.059 billion.
Products: In terms of products, OnMobile added pan-India roaming capability to the Reverse RBT product and added dynamic content refresh and shuffle, launched Mobile Box Office on audio with a telecom operator, and added LinkedIn to the OnMobile Social Network Gateway. To their Network Address Book, they added an enterprise capability to allow companies to share and sync addresses across the enterprise.
Last Quarter Results: OnMobile Global FY10 Revenues Up To Rs. 4.54Bn; Profit Down To Rs. 423M
Note: No industry trends data from OnMobile Global this quarter, since it has announced its Q1 financial results before most of the telecom operators.