Spice Mobility’s mobile devices business continued to face losses, although to a lesser extent than before, and the segment posted a net loss before tax of Rs 13.85 crore for the quarter ended June 30th 2015, compared to a loss of Rs 69.78 crore in the previous quarter.Year-on-year, the company’s losses widened as it reported a loss of Rs 3.34 crore the same quarter last year.
The segment reported total revenues of Rs 431.8 crore for the quarter, registering a marginal 1.51% growth from Rs 425.38 crore the preceding quarter. On a year-on-year basis, the revenues declined by 13.3% from Rs 498.02 crore in the corresponding quarter last year.
Mobile devices business continues to dominate Spice Mobility’s revenues, accounting for 88.03% of the company’s revenues for the quarter that stood at Rs 489.02 crore. The mobile devices segment accounted for 91.7% of the company’s revenues in the same quarter last year and 89.45% in the preceding quarter.
Services profit increases: The revenue from Spice Mobility’s services business increased to Rs 58.52 crore for the quarter, up 25.68% from Rs 46.56 crore in the same quarter last year and up by 4.28% from Rs 56.12 crore in the preceding quarter.
The profit before tax however decreased to Rs 1 crore for the quarter, down 21.26% from Rs 1.27 crore profit in the same quarter last year and down 78.26% from Rs 4.6 crore profit in the previous quarter. Services business represented about 11.97% of Spice Mobility’s revenues for the quarter.
Overall, Spice Mobility posted revenues of Rs 489.02 crore for the quarter, down from Rs 543.03 crore in the same quarter last year and marginally up 1.78% from Rs 480.46 crore in the preceding quarter. The company reported net loss before tax of Rs 15.41 crore for the quarter, compared to the loss of Rs 16.84 crore in the same quarter last year and a loss of Rs 66.14 crore in the preceding quarter.
Stake in Creative Functionapps: In July Spice Digital, a subsidiary of Spice Mobility, acquired 26% stake in telecom technology solutions providers Creative Functionapps Lab for an undisclosed amount. Following the deal, Creative Functionapps became an Associate Company of Spice Digital. With Spice Mobility’s mobile devices business continuing to post losses, the acquisition of Creative Functionapps could be the company’s attempt to prop up its services business, which has been steadily increasing its share in the company’s total revenues.
Delisting plans on hold: In May, Spice Mobility’s promoters Smart Ventures Private Limited, informed the stock exchanges that it was putting on hold any step in the direction of the proposed delisting of the equity shares. In January, Spice Mobility promoter Smart Ventures Private Limited had received board approval to delist the company from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Download: Financials (pdf)