wordpress blog stats
Connect with us

Hi, what are you looking for?

OnMobile posts net loss of Rs 1 cr due to demonetization, foreign currency losses

OnMobile Global posted a net loss of Rs 1 crore for the quarter ended December 2016 (Q3 FY17) compared to the net loss of Rs 12.5 crore in the same quarter last year. The company had posted a net profit of Rs 4.1 crore in the preceding quarter. The mobile VAS company was back to profitability in Q1FY17 after steadily narrowing losses.

Revenues stood at Rs 180.5 crore a decline of 12.7% from Rs 206.8 crore in the same quarter last year. Sequentially, revenues saw a degrowth of 3.5% from Rs 187.1 crore. Revenue was down due to the demonetization in India, devaluation of the Egyptian Pound and poor performance in Brazil.

EBITDA also continue to decline. On a year-on-year basis, EBITDA was down 35.2% to Rs 25.2 crore.  Employee costs decreased 4.6% from the preceding quarter to Rs 50.3 crore and costs were down 6.5% on a YoY basis.

India business:

At 24% of total revenues, India business was Rs 43.3 crore, a marginal decline from the preceding quarter. Onmobile mentioned that its contract with Vodafone for ring-back tones and other services was renewed for a further period of 2 years effective January 2017.  It renewed an agreement for providing SMS and WAP services to BSNL for a period of one year.

International business

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

Europe: Recorded a strong revenue growth of 7.5% q-o-q. OnMobile signed a new agreement with TIM Italy to provide CVAS services. These services were launched in December 2016.

Latin America: Revenue down by 37.4% q-o-q. This was primarily due shutting down of non-core business such as Football in the region and the inability reach a long-term arrangement with telecom operator Vivo, Brazil.

Other emerging markets: Revenue down by 16.8% q-o-q in Asia. In the Middle East and Africa, revenue was down by 7.4% q-o-q mainly due to devaluation in the Egyptian Pound.

Other developments:

In August, OnMobile entered into a deal with US-based carrier Sprint for their ringback tone service. It recently also launched ONMO, a B2C platform that offers a suite of mobile apps and services.

Download: Financials | Presentation 

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

Views

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

News

By Anand Venkatanarayanan                         There has been enough commentary about the Indian IT...

News

By Rahul Rai and Shruti Aji Murali The Indian antitrust regulator, the Competition Commission of India (CCI) has a little more than a decade...

News

By Stella Joseph, Prakhil Mishra, and Surabhi Prabhudesai The recent difference of opinions between the Government and Twitter brings to fore the increasing scrutiny...

News

This article is being posted here courtesy of The Wire, where it was originally published on June 17.  By Saksham Singh The St Petersburg paradox,...

You May Also Like

News

Info Edge (India) Limited, the parent company of subsidiaries such as Naukri.com and Jeevan Saathi, on Monday announced its results for the fourth quarter...

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