Onmobile Global
Onmobile Global hit the roof on the back of its good numbers for Q1FY14. The company’s net revenue, YoY was up 2.4% and 3% (QoQ) at Rs.190 crore. Its EBITDA rose 44.4% at Rs.52 crore and margins came in at 27.3%. Its Net Profit increased 47.6% at Rs.14 crore, with NPM coming in at 7.4%. During the quarter the company also had a net forex gain of Rs.10 crore. Its income was driven mainly by international business, mainly driven by LATAM, which recorded a strong growth of 49.5% (YoY) and 7% (QoQ). Africa grew 28% on YoY and Europe grew 12%. Domestic business declined 20% (YoY) and down 3.5% (QoQ) and this, the company has blamed on the implementation of the TRAI regulations. Contribution of domestic revenue which was at 43% in Q4, fell to 34% in current Q1.
The company has won a major deal with MTN for provision of RBT services across 21 countries and it expects revenue to be around $80-$120 million over 5 years. This revenue share model has no up-front fee or minimum guarantee. The company has completed the acquisition process of LiveWire Mobile on July 19, 2013 and has initiated integration efforts. On 11th July, TRAI mandated double confirmation for activation of VAS services, across channels with the second-confirmation to happen through a consent gateway operated by third parties. The company expects this ruling to have a moderate impact on the company due to user experience and technical challenges related to second confirmation from a third-party consent gateway system.