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Onmobile posts a profit of Rs 9.33 crore in Q1FY17

OnMobile Global

Onmobile Global has posted a net profit of Rs 9.33 crore for the quarter ended June 30. The mobile VAS company is back to profitability this quarter after steadily narrowing losses in the preceding quarters. Onmobile had reported a net loss of Rs 14.8 crore and a loss of Rs 6.57 crore in the same quarter last year.

Note that Onmobile has adopted the new Indian Accounting Standards (IAS) for this quarter. As such, the net loss according to the older Generally Accepted Accounting Principles (GAAP) stood at Rs 6.1 crore in the previous quarter and Rs 16 lakh in the same quarter last year.

Revenues in the company declined 5.75% to Rs 188.61 crore compared to Rs 200.12 crore the preceding quarter. Onmobile had reported revenues Rs 201.82 crore in the same quarter last year, a decline of 6.54%. Onmobile attributed the reduction of revenue to the final wind-down of businesses categorized as noncore, and partially due to the renewals of customer agreements with revised revenue share

Cash reserves for the company decreased 20.16% to Rs 265.2 crore from Rs 320.9 crore in the preceding quarter.

EBITDA increased 12.9% q-o-q to Rs 29.7 crore. Employee costs decreased 3.52% from the preceding quarter to Rs 54.2 crore. Employee costs were 31.23% of total costs. For context, three years ago, employee cost was 40% of total costs.

Paid subscribers for the Ring Back Tone business surpassed 73 million globally.

India business

At 24.12% of total revenues, India business was Rs 45.5 crore, up 1.4%  sequentially from Rs 44.9 crore and up 2.5% y-o-y. Onmobile mentioned that its market share in India is at 70% after going live with Ringback tones in Airtel West and Reliance Communications.

International business

International business was stable at 76% of total revenue during the quarter.

Latin America: Revenue down by 10.7% q-o-q and 38.7% y-o-y respectively. This was primarily due shutting down of non-core business such as Football in the region. Onmobile was also unable to reach a long term arrangement with telecom operator Vivo, Brazil.

Other emerging markets: In Asia, revenue was down 6.6% q-o-q and 39.1% y-o-y. Middle East and Africa, revenue down by 4.4% q-o-q and 4.6% y-o-y.

Share buyback

In June, Onmobile completed its buyback of shares worth Rs 70 crore with a total purchase of 5.6 million shares. This quarter, 4.1 million shares were bought with a total outflow of Rs 41.4 crore.

Download: Slides | Financials

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