OnMobile Reports Fourth Quarter Fiscal 2016 Results
EBITDA margin at 19.0% in Q4 FY16 with a 16.3% growth YoY
Bangalore, India – 30th May, 2016: OnMobile Global Limited (“OnMobile”) today announced the results for Fourth Quarter FY2016 ended March 31, 2016. EBITDA for FY’16 grew by 24.5% compared to FY’15 to Rs. 1,527 Mn from Rs. 1,227 Mn. Growth of 16.3% y-o-y from Rs. 327 Mn in Q4 FY’15 to Rs. 381 Mn in Q4 FY’16 and a de-growth of 5.3% sequentially.
Q4 FY2016 Business highlights:
International business (78% of total revenue):
- Overall international business stable at 78% of the total revenue.
- Europe recorded a revenue growth of 4.4% q-o-q and 10.4% y-o-y.
Other Emerging markets:
- Revenues down by 3.6% q-o-q and grew by 14.8% y-o-y to Rs. 407 Mn.
- Revenue grew by 11.7% q-o-q and 65.9% y-o-y.
Africa & Middle East:
- Revenue down by 12.8% q-o-q and 7.3% y-o-y.
- Crossed 2 million subscriber base in the month of March ’16 with 11.8% penetration in a major operator in Nigeria.
- New business win for Ring Back Tones in Airtel Nigeria increases our coverage in Africa to 50 million and makes OnMobile, Airtel’s largest RBT partner in Africa.
- Revenue down by 21.9% q-o-q and 38.0% y-o-y respectively. Underlying business and Forex environment and outlook continues to be unstable as highlighted in the earlier quarters.
Domestic business (22% of total revenue):
- India revenue was Rs.449 million in Q4 FY’16, down by 2.3% q-o-q and 13.5% y-o-y.
- Secured a 3 year deal with Reliance communications to provide Ringback Tones platform to its customers on GSM and CDMA networks across India.
- This year we won a 3 years’ renewal contract for its Ring Back Tone offering with Bharat Sanchar Nigam Limited in South & East Zone with an option to extend for the 4th year.
- Won western Circles from Airtel for Ring Back Tone business to become the largest RBT partner for Airtel in India which increased our reach in Airtel from over 60 million subscribers to over 115 million subscribers. Deployment under progress.
- Buyback: In February, Onmobile had announced buyback of shares amounting to Rs. 700 Mn subject to a maximum of 5.6 Mn shares. At the end of May the total buyback stood at 2.9 Mn shares with an outflow of Rs. 342.4 Mn.
- Dividend: The Board of Directors have recommended a Dividend of Rs. 1.50 per share payout, which represents 15% of the face value of Rs. 10 for each share.
Q4 FY2016 Financial performance:
- EBITDA for FY’16 grew by 24.5% compared to FY’15 to Rs.1527 Mn from Rs.1227 Mn. Growth of 16.3% y-o-y from Rs.327 Mn in Q4 FY’15 to Rs.381 Mn in Q4 FY’16 and a de-growth of 5.3% sequentially
- Last year revenue included Voxmobili business amounting to Rs.151 Mn. Normalized for this, revenue remains flat y-o-y. On a sequential basis, revenue dipped by 3.2%.
- Manpower optimization has resulted in a cost reduction of 22% as compared to FY’15
- Operating expenses down by 16% sequentially, 31% y-o-y and 15% on full year basis
- Net cash (Cash minus Debt) improved significantly to Rs.3,013 Mn from Rs. 2,515 Mn in the last quarter and Rs.2,249 Mn at the end of last financial year
- FY’15-16 was the last year of UFF amortization related to Telefonica Latam amounting to Rs. 715 Mn
- OnMobile’s Ringback Tone customer-base surpassed 71 million worldwide in FY’15-16 from 59 million a year back
OnMobile [NSE India: ONMOBILE], headquartered in Bangalore, India, and with offices in all regions of the world, delivers over 500 million music plays daily to mobile customers worldwide. Based on current deployments, OnMobile has an addressable base of more than 1.5 billion mobile users across several geographies. For further information, please visit www.onmobile.com