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OnMobile FY12 Profit Down 6.8%, Domestic Revenue Down 9%; Declares Dividend

OnMobile Global reported consolidated profits of Rs 4.79 crore for the quarter ended 31st March 2012 (Q4-FY12), on revenues of 177.55 crore. Net profit declined 82.16% year on year even as revenues grew 33.18% year on year, but bear in mind that in Q4-FY11, OnMobile had received a bump up in income because it sold 9% in Ver Se for Rs 28.59 crore. Operating profit for the company was down 7% quarter on quarter, and 2% sequentially, while, according to the company, its Gross Margin was up by 30% Q0Q and 6% sequentially and EBITDA Margin was up by 33% QoQ and 5% sequentially.

OnMobile’s Board of Directors have recommended a dividend of Re 1 per fully paid up equity share of Rs 10 each, aggregating to Rs 13.37 crore, including dividend distribution tax.

Full Year

For the full year (i.e. trailing four quarters), OnMobile reported an operating income of Rs 638.01 crore, up from Rs 537.21 crore last fiscal, but net profit declined 6.8% to 83.09 crore, from Rs 89.2 crore reported the previous fiscal.

The company attributes its operating profit decline to higher depreciation cost, and said that it has “been able to maintain EBITDA margins almost in line with our revenue growth, despite our continuing investments in geographical expansion like Latin America, North America and Africa. All these investments tend to have higher initial set up and operational costs prior to the revenue ramp-up.”

Domestic Vs International

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The company has said that international operations are off-setting its “sluggish domestic business” – for the quarter, domestic revenue declined 7% to Rs 84.4 crore compared to Rs 90.8 crore for the same quarter last fiscal year, while for the full year, domestic revenue declined to 9% to Rs 353.8 crore from Rs 390.5 crore reported last fiscal. International revenues contributed around 48% of revenues for the quarter.

In comparison, International revenue grew 119% year on year for the quarter to Rs 93.2 crore from Rs 42.5 crore last fiscal, while for the fiscal year FY12, International revenues were Rs 284.2 crore, up 94% from Rs 146.7 crore. This, in a sense, validates OnMobile’s decision to invest in international markets:

India still remains over 50% of its revenues, but the gap is closing with a growth in International revenues even as India revenues decline. International revenues contributed around 45% of total revenues.

The company says that its deployment in Latin America with Telefonica now covers 12 countries, having adding one more country during the quarter. Africa and in developed markets like Europe and North America also showed impressive gains with new customer deployments and product launches.


Content Costs

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Quarter on Quarter comparison

Trailing 4 Quarter Comparison

Downloads: Q4 FY12 Highlights | Published Results Consolidated | Published Results Standalone

We’ll have more from OnMobile’s earnings conference call.

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