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OnMobile Concall: More Buyback Pressure, MTN, LiveWire, Music

Notes from OnMobile Global's conference call today, following the announcement of their Q1-FY14 results: On Buyback "I firmly believe that a decision on the buyback should be looked at after examining the organic and inorganic needs of the business. It doesn't mean that I'm not looking at other shareholder actions. I also wish to clarify that the company has strengthened its internal control measures besides rolling out several corporate governance initiatives after years incidents." - Tony Haight A shareholder (a fund) on the call, once again, made a case for a buyback, saying: "At the current rate of Rs 21, we (OnMobile) are at Rs 240 crore of market cap, and the cash is Rs 180 crores. We really strongly feel that there could be a policy where incremental cashflows, after even paying for Livewire, be used first for a buyback. Even a small amount of Rs 25-50 crore, would be good enough to restructure the capital structure. Secondly, there can be a payout policy of 40-50%, and that can, in addition to the buyback, because buyback I think very very strongly, has to be done at this level, that is my recommendation..." In response, Haight said that Onmobile has set up teams for new products and services, because the products and services now will be different from those being sold in 2 years, and those in 4 years. "We will make decisions on buybacks according to these following general rules: Expand the business profitably in new areas where we see opportunities…

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Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

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