OnMobile Global posted a net profit of Rs 2.7 crore for the quarter ended December 2017 (Q3 FY18) compared to the net loss of Rs 1 crore in the same quarter last year. The company had posted a net profit of Rs 1.9 crore in the preceding quarter.
Revenues stood at Rs 158 crore a decline of 12% from Rs 180.5 crore in the same quarter last year. Sequentially, revenues saw a degrowth of 5% from Rs 166 crore. Revenue was down on the account of its Europe and Asia (excluding India) operations.
EBITDA also continue to decline. On a year-on-year basis, EBITDA was down 37% to Rs 25.2 crore. Employee costs decreased 1% from the preceding quarter to Rs 48 crore and costs were down 5% on a YoY basis.
At 22% of total revenues, India business was Rs 34.6 crore, a marginal decline of 4% from the preceding quarter. The mobile VAS company mentioned that it entered into an arrangement with a large operator to bundle the Ringback Tone (RBT) services for postpaid users, which is expected to have a positive impact on revenue in the future. The company did not name the operator though. We had reported that in June last year, that the company has signed a 3 year ringback tone and reverse ringback tone deal with Bangladesh-based telecom company Banglalink.
International business was stable at 78% of total revenue during the quarter.
-Europe: Revenue was down by 5% q-o-q at Rs 82.2 crore in Q3 FY’18. Onmobile renewed its Mobile Entertainment contract with a large operator in Europe till mid of 2019;
-Africa & Middle East: Revenue up by 11% q-o-q at Rs. 22.6 crore. The company signed a content aggregation agreement with a major operator in the Middle East. It also achieved a service penetration of 25% in a major operator in Mozambique with OnMobile
contributing to 95% of VAS revenues in the Operator;
-Asia (excluding India) :Revenue down 27% q-o-q impacted by subscriber confirmation policy implemented earlier;
-Latam: Revenue down by 15% q-o-q;
-US: Revenue down by 9% q-o-q.