OnMobile Global reported consolidated profits of Rs 14.06 crore for the quarter ended June 30, 2012 (Q1-FY14), up 47.7% from Rs 9.52 crore profit in the same quarter last year and up 30.2% from Rs 10.8 crore sequentially. The growth includes a forex gain of Rs 9.9 crore, sans which, the profit for the quarter would have actually declined 17%, as compared with Q1 last year.

The company posted a total revenue of Rs 189.7 crore for the quarter, registering a marginal 2.4% growth from Rs 185.21 crore revenues in the same quarter last year and a 3% growth from Rs 184.1 crore in the previous quarter. EBITDA increased 44.4% to Rs 51.8 crore at 27.3% margin, but normalised for Forex gain, EBITDA increased 14.2% to Rs 41.9 crore at 22.1% margin.

The domestic business declined 20.1% to Rs 64.4 crore, largely due to the impact of the TRAI regulations, and contributed only 34% of net revenue in Q1, as opposed to 43.5% last year. Quarter on quarter, India revenues declined 3.5% quarter on quarter.

International business (Update)

The International business grew by 19.8% t Rs 125.3 crore and contributed 66% of net revenue during the quarter, versus 56.5% in Q1 FY2013. The Latin American business grew 49.5%. African and European businesses also recorded robust growth of 28.2% and 12.5%, respectively.

Last week, OnMobile had also inked a 22 country ringback tone deal with MTN last week, which it says will $80-120 million over five years. As part of this deal, the company will start deploying RBT services for MTN subscribers over the next quarter and will replace the entire service over the next 24 – 30 months in 22 countries.

Expenditure

The content fee and royalty expenditure was at Rs 17.32 crore for the quarter, up from Rs 11.85 crore in the previous quarter, but down from Rs 23.8 crore in the same quarter last year. The costs from other sales and services was at Rs 7.98 crore, down from Rs 13.24 crore in the previous quarter and Rs 10.26 crore in the same quarter last year.

Products

While the company hasn’t provided any updates on their products and their deployment for the quarter yet, but the focus has quite clearly been on caller ringback tone (CRBT).

This was evident by the acquisition of the Boston-based LiveWire Mobile for $17.8 million plus liabilities in June 2013 and setting up a wholly owned subsidiary OnMobile Live Inc. OnMobile had informed that this acquisition will allow them to provide CRBT services to telecom operators in the US. It closed the acquisition last week.

While the company seems to be sticking to the managed services approach, it did launch a consumer product in form of a personal safety Android app called Help Me On Mobile, which aims to allow users alert their families during medical emergencies, accidents, theft, eve teasing and stalking among others.

More To Follow

Download: Financials

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