Onmobile Global posted a net loss of Rs.8 crore for Q3FY14, compared to a net profit of Rs.21 crore in Q3Fy13 and net profit of Rs.15 crore in Q2FY14. This was on account of the one-time impact of minimum guarantee of Rs. 14 crore  (7% of revenues), for a contract in Europe.

The sequential performance was not enthusing, with net revenue declining 1%. International revenue fell 3% due to sluggishness in Latin America, Egypt and Bangladesh. Its EBITDA decreased 6% at Rs.36 crore and EBITDA margin was at 13.1% v/s 14.9% in Q2FY14. Its Latin America business declined 11% (QoQ) and down 15% (YoY) due to technical issues regarding core and VAS services in Brazil during the first half of Q3. The company has stated that since then the issues have been resolved and its monthly run rate is back to normal. Revenue in India declined 17% (YoY) but QoQ, rose 3%. Other emerging markets recorded growth of 4% (YoY) and decline of 8% (QoQ). Its business in Europe did well, with revenues increasing 128% (YoY0 and 10% (QoQ), driven by CVAS offering. Net cash at end of Q3 increased from Rs.25 crore to Rs.80 crore. Looks like the company was impacted due to an one-off event and hopefully, it should turn around in Q4.