wordpress blog stats
Connect with us

Hi, what are you looking for?

MoneyOnMobile transaction value declines to $109 million in Q3FY17

MoneyOnMobile said that its quarterly transaction value declined to $109 million during the quarter ended December 31st, 2016 (Q3FY17). This signifies a decline of 50% Year-on-Year (YoY) from $216 million in Q3FY16 and a decreased of 22% Quarter-on-Quarter (QoQ) from $140 million in the preceding quarter.

Net Revenue stood at $0.97 million during Q3FY17, down 39% YoY from $1.61 million revenues in Q3FY16. The gross profit stood at $0.58 million during the quarter, down 34% YoY from $0.89 million in the same quarter last year. Quarterly Gross profit Margin stood at 59% during the quarter, up from 55% in the same quarter last year.

Note that MoneyOnMobile is currently retooling its business model in the country and focusing on transactions which have higher margins. This has resulted in lower processing volumes and revenues.  CEO Harold Montgomery explained in an analyst call that the company will be focusing domestic remittances, cash-out and card purchases.

“So we have two basic ways of charging for transactions. There are those transactions for which we charge a percentage of volume and an example would be prepaid mobile time, known as mobile top up in India, topping up your prepaid mobile account. We get about 1% of the transaction value as our revenue. For domestic remittance, on the other hand, we charge a fixed fee per transaction regardless of the size of the transaction,” Montgomery added

Mobile ATMs: The company launched mobile ATM devices across physical stores in the country in November last year. By the end of January 2017, the company claimed to have equipped mobile ATM devices at more than 400 retail outlets. MoneyOnMobile claims that its service was accessed by more than 190 million unique customers till January who generated more than $1.7 billion in transactions till date. The service is now offered to consumers through more than 333,000 retail agents throughout the country in more than 700 cities.

Demonetization: Ever since the demonetization of Rs 500 and Rs 1000 currency notes in November, MoneyOnMobile reported an 119% growth in transaction volumes on a weekly basis. The company claimed to process Rs 30.7 crore worth of transaction during the week that demonetization kicked in; this increased significantly to Rs 67.4 crore as of February.

Advertisement. Scroll to continue reading.

 

MoneyOnMobile allows consumers to use their mobile phones to pay for goods and services or transfer funds from one person to another using SMS text.

Download: Quarterly Report | Transcript

You May Also Like

News

Mobile number porting requests increased by 20% to 8.2 million requests in December 2020, compared to 6.8 million porting requests reported in November 2020....

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
Name:*
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