OnMobile Global has reported a 28.8% year-on-year decline in standalone (India) profit, and a 28.36% year-on-year decline consolidated (global) profits, despite a growth in revenue, for the quarter ended June 30th 2011 (Q1-FY12). The company reported a consolidated profit of Rs 12.78 crore on Rs 136.41 crore in revenue, and a standalone profit of Rs 12.39 crore on Rs 118 crore of revenue.
This decline in profit should be seen in the context of an announcement in Q4-FY11: that the company had gained Rs 23.1 crore, following its stake sale in Ver Se Innovation on February 7th 2011. However, also keep in mind that in this time, there has been an increase in revenue, as well as a substantial reduction in content costs, attributable to a change “change in contractual scope involving content management responsibilities in one of its major customers”, explained last quarter. The conference call, at 11am today, should shed some light on this.
On a standalone basis, there has also been a noticeable increase in “Other Expenditure” on a standalone basis over the last year. Last year, quarter on quarter, this was Rs 19.7 crore in Q1, Rs 24.77 crore in Q2, Rs 33.55 crore in Q3 and Rs 36.3 crore in Q4. For the quarter ended June 30th 2011, it was Rs 35.96 crore. Perhaps this has something to do with the Dilithium acquisition.
– OnMobile OnCloud: the company launched a SaaS based platform for Content, Communications and Mobile Commerce applications offering a social community layer to existing and new VAS services. This will be launched with multiple operators.
– Latin America: OnMobile is live in 7 countries in Telefonica LatAm, with one new country added during the quarter. Shouldn’t the deployment in 13 countries have been complete by now? In March, OnMobile CEO Arvind Rao had said that the deployment was 90-95% complete. The Active User base in the market is up 50% quarter on quarter to 4.6 million users. OnMobile also launched a sports pack ‘Futbol’ in 12 countries, ahead of the Copa America tournament.
– In Spain, it launched a RBT on a SaaS model with Telefonica, and migrated one million RBT customers to it.
– Africa: launched RBT and MRadio services in two countries in Africa, as well as the OnMobile OnCloud suite of services in the African continent allowing RBT, MRadio, Phonebackup, Phonebook and 3G based community services like Video casting.
Note: we’ll have more from the conference call later today.