wordpress blog stats
Connect with us

Hi, what are you looking for?

Onmobile back in the black and posts net profit of Rs 1.26 crore in Q2

OnMobile Global

Onmobile Global returned to profitability as the company reported a net profit after tax of Rs 1.26 crore for the quarter ended September 30th 2015. It had reported a net loss of Rs 0.16 crore in the preceding quarter and Rs 1.21 crore in the same quarter last year.

It reported consolidated revenues of Rs 207 crore for the quarter ended September 30, a marginal decrease of 0.2% from Rs 207.5 crore from the same quarter last year and an increase of 2.6% from Rs 201.8 crore from the preceding quarter. Cash reserves for the company increased to Rs 255.7 crore compared to Rs 254.2 crore.

onmobile financials

EBITDA grew by 42% year-on-year to Rs 39.3 crore in Q2 FY’16. “Expenditure to support the development of new products and brand continues at the rate of 2% of revenue in the current quarter,” the company added.

onmobile ebitda


According to the company, “Headcount optimization during the last financial year and quarter resulted in a reduction of manpower cost by 23.6% y-o-y and 3.8% q-o-q.” Onmobile’s employee base at the end of September 2015 was 1,075.

Advertisement. Scroll to continue reading.

Employee costs are now 27.1% of total costs. For context, two years ago, employee cost was 40% of total costs.

onmobile employee costs

India business

At 22% of total revenues, India business was approximately Rs 45.1 crore, down 21.6% from approximately Rs 58.09 crore from the corresponding quarter last year, where it was around 28% of revenues. Sequentially, the India business increased marginally 1.7% from approximately Rs 44 crores, (around 22% of revenues).

The company won western circles from Airtel for Ring Back Tone business to become the largest Ring Back Tone partner for Airtel in India. “This win increases our reach in Airtel from over 60 million subscribers to over 115 million subscribers,” it added. CVAS, a direct to consumer product, was also launched in a large operator in India.

Also read: OnMobile moving from a network-centric 2G service provider to the app space

International Business

Advertisement. Scroll to continue reading.

International business accounted for 78% of the total revenues or Rs 161.46 crore, up 8% y-o-y and up 2.8% sequentially.

Readers will note that OnMobile had sold Voxmobili to Synchronoss for $26 million in July last year, following an intellectual property violation case filed by Synchronoss, against Voxmobili, Onmobile Global and Onmobile USA LLC.


Latin America was a cause for concern, as revenue was down 1.5% quarter-on-quarter, and 23.9%  year-on-year. Revenue grew by 5% q-o-q, excluding the forex impact of fluctuations in local currencies.

Readers will remember that in June the company renewed its Ringback Tones partnership with Telefonica / Movistar in Latin America for four years. More importantly, this contract renewal was secured without any upfront fee (i.e. minimum guarantee). Onmobile says that it believes that not paying an upfront fee and accepting a lower revenue share is a better financial model for OnMobile. “As a consequence of this approach, FY16 will conclude the amortization cost relating to the upfront fee and the Depreciation cost in FY17 will be lower” by around Rs – crore.

Developed markets

Advertisement. Scroll to continue reading.

Europe recorded a revenue growth of 49.2% y-o-y and 4.4% q-o-q. The company launched “High-Definition (HD) Identity RBT service” for 4G Voice (Voice over LTE) customers of Vodafone Spain in the preceding quarter. OnMobile now has the new service in two major operators in Spain, including Telefonica.

In other Emerging Markets

Revenue grew by 6.7% y-o-y and 7.0% q-o-q to Rs 37.3 crore. The company deployed its Ringback tone service in Malaysia. In Bangladesh, it crossed 8 million subscribers, and has 16% RBT penetration with one of the large operators in Bangladesh. Onmobile launched a digital music store with Grameenphone. More on that here.

It won CVAS business in 2 major operators in Srilanka, each with a subscriber base of around 6 million.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.


The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.


In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...


By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...


By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

You May Also Like


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ