MoneyOnMonbile posted revenues of $1.21 million for the quarter ended June 30 (Q1 FY18), a decrease 14% from $1.4 million in the same quarter last year.
- It posted a gross profit of $697,802, a decline of 6.36% from $745,269 in the same quarter.
- However, the company said that the gross profit margin for the quarter stood at 57.6% compared to 52.9% in Q1 FY17.
- Net loss widened to $4,031,618 from $2,437,612.
Note that MoneyOnMobile is currently retooling its business model in the country and focusing on transactions which have higher margins. For this quarter, the company has not disclosed its quarterly transaction value but it did mention that it has processed $2 billion till date.
CEO Harold Montgomery explained in an analyst call that the company will be focusing on domestic remittances, cash-out and card purchases.
MoneyOnMobile said that a significant portion of revenue is attributable to merchant services, that includes mobile and Direct-to-Home recharge. Other services offered are Consumer Services, including bill payment and money transfer. For bill payment transactions, the company act as an agent with consumers. Distributors use their electronic wallet technology to allow consumers to pay utility bills by mobile phone text message and smart phone.
MoneyOnMobile earns a fixed transaction fee for these services. For money transfer services, once a consumer has established a MoneyOnMobile electronic wallet account, consumers can send money to other parties that have MoneyOnMobile accounts, including other retailers and utilities and other consumers and earns a fixed transaction fee for these services.
- More than 335,000 agent network in India.
- Present in 700 cities.
- Can undertake 55 financial transactions.
- The company claims that it has served more than 200 million customers based on unique mobile numbers.
Listing on NASDAQ: Montgomery mentioned that it is a goal of MoneyOnMobile to uplift to the NASDAQ or other national exchange. Currently, the company is listed on the OTC Markets Group, an American financial market place which has 10,000 over-the-counter securities. “The shareholders approved the board’s power to reverse split the shares at a future date when the conditions are right the board reserves the right to do that when they are ready and they see the conditions are right,” the management added.