India revenues for Onmobile Global grew to Rs 57.6 crore, up 13.8% year on year and 24.3% quarter on quarter, as the company reduced costs. It won an exclusive deal for caller ringback tones with Tata Teleservices, and says it renewed contract for SMS, WAP and USSD services “with a leading operator”.
On a consolidated basis, Onmobile reported a net loss of Rs 1.21 crore, as compared with a profit of Rs 1.5 crore reported for the same quarter last year, and down from Rs 23.9 crore reported in Q1-FY15.
This was helped by a marginal quarter on quarter increase in revenues, which rose to Rs 207.5 crores.
Since Onmobile had once said that Mobile VAS cannot be viewed from a Quarter on Quarter point of view, the following chart should give you an indication of its performance over the trailing four quarters:
Data declined as a percentage of revenue due to Voxmobili sale
International revenues, at Rs 149.9 crores, now account for 72% of Onmobile’s revenues. International revenues were flat, when normalising for the sale of VoxMobili, the company said. MediaNama readers might recall that OnMobile had sold Voxmobili to Synchronoss for $26 million in July this year, following an intellectual property violation case filed by Synchronoss, against Voxmobili, Onmobile Global and Onmobile USA LLC.
The company said that Voxmobili revenue was mainly derived from the developed markets and hence Q2-FY15 numbers are not comparable with the historical quarters. Adjusted for the sale of Voxmobili, revenues increased 17.7% quarter on quarter to Rs 63 crore and 6.5% year on year. Also, overall revenues (adjusted for the sale of Voxmobili) “increased by 13.0% q-o-q and 1.9% y-o-y. EBITDA increased significantly by 77.5% q-o-q to Rs. 278 million at 13.4% margin”, according to the company.
Rs 289.8 Cr in cash & cash equivalents
The company has Rs 289.8 crore in cash and cash equivalents, a situation that is a vast improvement over the Rs 146. 3 million in the last quarter to
million in Q2 FY2015. This was primarily due to cash proceeds from the sale of Voxmobili, improved collections and better working capital management.
Even as content costs for the company increased to their highest ever level of Rs 47.8 crore, the company reduced expenditure by laying off employees.
Around 383 employees laid off so far
The employee strength has come down to 1217 at the end of Q2, from around 1600 at the end of Q1, company execs said on the Onmobile Global conference call, responding to a query from MediaNama. This indicates that around 383 employees had been laid off during the quarter. There has been a decline in Employee expenditure, which has gradually been reduced over the last two quarters.
Employee costs were down to around 35% of total revenues, and at their lowest since the end of the quarter ending 31st December 2010. To give you some context, employee expenditure was 42.75% of total revenues last quarter, and 40.47% at the end of Q2 last fiscal.
This is to inform you that OnMobile Global (“OnMobile”) today announced the results for the Second Quarter FY2015 ended September 30, 2014.
Other notes from the results
Other emerging markets:
– Revenues increased 7.6% q-o-q to Rs 35 crore and declined (8.5)% y-o-y.
– Launch of cRBT service in Nigeria
– Achieved 10% paid RBT penetration with an operator in Qatar.
– Went live with four more countries in MTN taking total deployments in MTN to five countries
– Latin America: Revenue up 1.4% q-o-q to Rs 51.9 crore
– One-time impact of the minimum guarantee of Rs. 78 million in Q2 FY2015, for a contract in Europe. FY2015 is the second year of the two year minimum guarantee obligation. The first year’s impact was accounted in Q3 FY2014
– Francois-Charles Sirois has been made as Non-Executive Chairman. Mr. Sirois was named on the Board earlier this year and replaces H.H. Haight
– Praveen Kumar appointed the Chief Financial Officer.