Consumer tech maker Spice Mobility’s device business continues to face losses, although at a lower rate: the segment posted a net loss before tax of Rs 1.38 crore for the quarter ended 31st March 2017, compared to a loss of Rs 8.12 crore in the same quarter last year, and a profit of Rs 80.56 lakh in the previous quarter.
Total revenues of the company stood at Rs 2014.93 crore, with the devices business accounting for 68.07% of its total revenues. Net loss for the period stood at Rs 3.39 crore, down from Rs 23.36 crore in the same quarter last year, and down from Rs 6.95 crore loss crore in the previous quarter.
Other than the devices business, Spice Mobility runs Spice Retail, an offline retail and accessory chain, Spice Digital, a subsidiary that offers mobile value added services, apps and other online products to enterprises, telecom operators, Government agencies etc., and Spice World and Spice Studio, a mall and a film production company respectively. Spice Digital, included in its services business, also has a semi-closed prepaid payment wallet license.
Services business: The revenues from Spice Mobility’s services business decreased by 12% to Rs 63.06 crore from 71.68 crore in the previous quarter and up marginally from Rs 62.49 crore in the corresponding quarter last year. The segmented reported a profit of Rs 4.37 crore up from Rs 1.93 crore in the previous quarter, but down from Rs 5.48 crore in the same quarter last year. Services business represented about 32% of Spice Mobility’s revenues for the quarter.
Spice has been investing in various segments and acquiring new companies to increase its revenue share, especially in the profit-making services business segment. In March, Spice Labs made a strategic investment into Exponentially I Mobility, a company that develops and promotes mobile apps. The company also rolled out Aadhaar Enabled Payment System (AEPS) in February on its domestic remittance service Spice Money. Spice also picked up 100% stake in SVA (Mauritius), an Africa-based firm which deals with content monetization and supply of IT and software services.