Onmobile Global reported India revenues of Rs 51.5 crore, down 11% quarter on quarter, and 1.3% year on year. India is now 23% of Onmobile’s topline (22.7% to be exact), while the rest of the (International) business now dominates, accounting for 77.2% of total revenue. During the quarter, a key 2 year contract with one of the major operators was won by the company in India, Onmobile said in a statement.
On a consolidated basis, Onmobile reported a net profit of Rs 7.4 crore, as compared with loss of Rs 8.4 crore reported for the same quarter last year, and a loss of Rs 1.2 crore reported in Q1-FY15. This was helped by a 0.6% year on year and 9.3% quarter on quarter increase in revenues, which rose to Rs 226.8 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:
– International revenues, at Rs 175.3 crores, now account for 77% of Onmobile’s revenues. “International revenue growth was 16.3% on a y-o-y basis, normalized for Voxmobili business”, the company said in a statement. 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.
– Europe recorded a revenue growth of 50.2% q-o-q and 39.6% y-o-y to Rs 79.6 crore. Europe for Onmobile is larger than India, as is evident.
– Onmobile achieved 10% paid RBT penetration with an operator in Qatar. “This was a green field deployment and was achieved within 12 months of going live. RBT deployments went live in 6 countries for MTN, Africa Asia witnessed significant growth of 28.8% q-o-q and 63.0% y-o-y. Active subscribers increased from 1 million to 5 million in a key operator,” the company said in a statement.
A key market for the company, revenues decreased by 5.9% q-o-q to Rs 48.9 crore, and down 1.7% y-o-y, though the company says this is due to currency fluctuations.
Rs 220.9 Cr in cash & cash equivalents
The company has Rs 220.9 crore in cash and cash equivalents, lower than the Rs 289.8 crore reported last quarter.
Content costs increased to their highest level ever for Onmobile, to Rs 47.8 crore for the quarter.
Employee expenses decline
“Ongoing efforts to rationalize manpower and operating expenses continue to show results and have helped improve financial performance. Manpower cost declined by 14.6% and other operating expenses by 25.8% sequentially which has resulted in a significant EBITDA margin expansion,” Onmobile said in a statement.
During the quarter ended September 30th 2014 (Q2-FY15), Onmobile had cut staff to 1217, from around 1600 at the end of Q1, company execs said on the Onmobile Global conference call, responding to a query from MediaNama. This indicated that around 383 employees had been laid off during the quarter.
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.
Employee costs were down to around 27.36% 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 35% of total revenues last quarter, and 41.2% at the end of Q3 last fiscal.