In a note released alongwith its earnings results for the second quarter of the 2010-2011 fiscal (Q2-11), OnMobile Global has said that its operating profit has declined marginally for two reasons - a Forex loss, and a one time expense related to the purchase of Dilithium assets. OnMobile goes on to say that "The impact of both the items put together is around Rs. 20 Mn, which has impacted our Operating Profit by around 1.5 percentage points." Strange; I thought the Dilithium deal was signed in early October, after the September quarter ended. Anyway, this evens things out, since last quarter, they had reported a Forex gain of Rs. 21 million. Update: OnMobile CFO Rajesh Moorti clarified on the call that these are pre-acquisition related costs. Download: OnMobile Q2-11 results, with additional charts The company appears to have done well during the quarter, with consolidated revenue up 21.1% year on year, and net profit up 106.1%. Looks like international operations are impacting consolidated profits, since on a standalone basis (Indian operations), OnMobile reported a net profit of Rs. 24.89 crore, but a consolidated profit of Rs. 22 crore . OnMobile is in investment mode internationally, with multi-country deployment deals with Telefonica and Vodafone. - OnMobile launched services in Mexico as the third country and the first large‐scale deployment as a part of its Telefonica project in Latin America - both Ringback Tone (RBT) and Voice (portal) services have been launched. - RingBack Tone (RBT) services have been launched with Vodafone Egypt, and there…
