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Onmobile reports a net loss of Rs 7.63 crore as currency fluctuations weigh in

OnMobile Global

Mobile VAS and ring back tone company, Onmobile Global reported a net loss of Rs 7.63 crore for the quarter ended December 31, 2015. The company had reported a net profit of Rs 1.26 crore in the preceding quarter and a net profit of Rs 7.4 crore in the same period last year.

Revenues in the company remained flat at Rs 207 crore from the preceding quarter. Onmobile had reported revenues 226.82 crore in the same quarter last year. Cash reserves for the company decreased to Rs 278.3 crore from Rs 289.6 crore in the preceding quarter.

Onmobile’s profits was hit as the Argentinian government devalued Argentine Peso (ARS) which led to a foreign exchange loss of Rs 0.65 crore noted as an exceptional item. ARS weakened by 27% from Rs. 7.04 per ARS on 30 Sep 2015 to Rs. 5.11 per ARS on 31 Dec 2015

EBITDA grew by 2.2% q-o-q from Rs 3.93 crore in Q2 FY16 to Rs 4.02 crore in Q3 FY16.

Employee costs decreased 5.28% from the preceding quarter to Rs 52.54 crore. Employee costs were 25.75% of total costs. For context, two years ago, employee cost was 40% of total costs.

India business

At 22% of total revenues, India business was Rs 45.9 crore, up 1.7%  sequentially from Rs 45.1 crore. However, the company’s India revenues was down 10.8% y-o-y from Rs 52.17 crore.

OnMobile secured a three year renewal for its Ring Back Tone offering with BSNL in South & East Zone with an option to extend for the fourth year.

International business

International business accounted for 78% of the total revenues or Rs 161.32 crore, up 8.2% y-o-y and down 1% sequentially.

During the quarter, Onmobile closed the divestiture of their speech technology unit to Voicebox Technologies France S.A.S.

Developed markets: Europe recorded a revenue decline of 1.8% q-o-q and 2.5% y-o-y. Onmobile signed a CVAS contract with a major operator in Russia. “This will enable us to provide our CVAS services in Russia apart from laying a foundation for future opportunities in this region,” the company added.

Latin America: Revenue was down by 10.8% q-o-q and 27.7% y-o-y respectively essentially because of revenue share change , unstable economic outlook in continent and currency fluctuations. The company also secured a one year extension for their Ring Back Tone offering with Vivo, Brazil.

Other emerging markets: Revenue grew by 13.1% q-o-q and 14.3% y-o-y to Rs 42.2 crore. In Asia, revenue grew by 29.4% q-o-q and 39.6% y-o-y. Onmobile reached 10 Million ring back tone subscribers with a penetration of 18% with a major operator in Bangladesh. The compnay also launched RBT platform in Lesotho with a major operator in October which is currently at 33% penetration and 330,000 users.

Download: Press release | Slides | Financials 

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