India revenues for OnMobile Global declined 19.6% to Rs 284.5 crore for the fiscal year ended 31st March 2013 (FY13), down from Rs 353.8 crore the previous fiscal year (FY12). The decline was steeper than the annual decline in the last quarter of the year: down 21 percent in Q4-FY13, to Rs 66.7 crore, as compared with Rs 84.5 crore in Q4-FY12. OnMobile, however, said that the company witnessed stability in the India business during the quarter, which means that the decline has reduced or stabilized. India accounted only for 39% of Onmobile’s revenues in the FY13, down from 55% a year ago. The growth in the international business (64.5% up in Latin America, 9.8% up in emerging markets, 8.1% up in emerging markets) to around 61% of total revenues. Onmobile expects the split between India and International revenues to be 30:70 in FY14.

OnMobile-FY13-IndiavIntl
OnMobile-Q4-FY13-IndiavIntl

onmobile-FY13-geography

Onmobile also won an operator contract in Mexico. Africa reported increase in revenue by 39.8% for the quarter, and 105.3% for the full year. In Spain, the company went live with an operator, powering operator branded content services. During the year, revenues from Europe increased 48.4%, while they grew 39.7% in Q4-FY13, in comparison with Q4-FY12.

More in our OnMobile FY13 results coverage:
Onmobile’s earnings conference call
Quick Q&A with Onmobile MD & CEO Mouli Raman

Overall Financial Results

OnMobile Global has reported consolidated profits of Rs 47.18 crore for FY13, down 43.2 % from the Rs 83.09 crore reported in FY12. Revenues, however, increased 13.7% to Rs 725 crore from Rs 638.01 crore reported the previous fiscal year. It’s important to note here that the difference in profitability is due to a difference in other income: Onmobile had reported other income of Rs 67.64 crore in FY12, and this declined to Rs 22.04 crore in FY13: During FY13, Onmobile sold its stake in Ver Se Innovation (Rs 5.5 crore) and Kabuza Marketing (Rs 18 lakhs) for a profit of Rs 4.74 crore. The previous year, sale in Ver Se had netted the company Rs 46.64 crore. “Normalized for Ver Se sale in Q3 FY2013 and FY2012 and forex loss, Net Profit increased by 12.0%, in line with Revenue growth,” the company has said.

Net Cash was Rs 151.8 crore as on Mar 31, 2013 compared to Rs 161.2 crore as at March 31, 2012. Investors are trying to push Onmobile to buy back more shares.

The company declared a dividend of 15%, which will lead to an outlay of Rs 20.03 crore, including dividend distribution tax. 

OnMobile-Q4FY13-QoQ

For the fourth quarter (Q4-FY13), the company reported profits of Rs 10.8 crore, substantially (125.47%) higher than the Rs 4.79 crore it has reported for the same period last fiscal year (Q4-FY12). Revenue increased 3.69% to Rs 184 crore from Rs 177.55 crore.

OnMobile-FY13-snapshot

OnMobile-Q4FY13-Snapshot

However, note that OnMobile prefers comparisons to be on a four quarter basis, because earnings can be lumpy due to longer sales cycles.

OnMobile-Q4FY13-4Q-Comparison

Products

Once again, there’s no update on products and their deployment from the company, but the dependancy on RBT is surprisingly increasing, and in comparison with the previous fiscal, on a percentage basis, both ‘Voice & Text Services’ and ‘Data and others’ contributed less to revenues.

onmobile-revenues-by-products

We did some calculations (below) on the basis of the consolidated revenues (without Other Income) and the percentage figures provided above, and for Onmobile, it appears that RBT revenue has increased 34.58% year on year, and surprisingly, the revenue from ‘Data and Others’ has declined 19.46%. So, it appears that the growth in International RBT revenues are more than compensating for the decline in India.

onmobile-products-2

Strange.

Content Costs

Content costs continued to decline and at Rs 11.8 crore for the quarter, were at their lowest in almost four years (they were Rs 7.59 in Q1-FY09), as telecom operators did direct deals with content providers, instead of going through Onmobile.

OnMobile-Q4FY13-Content-Costs