OnMobile Reports First Quarter Fiscal 2014 Results

Q1 FY2014 Net Revenue, EBITDA and Net Profit increased by 2.4%, 44.4% and 47.6% y-o-y respectively

BANGALORE, India – July 31, 2013: OnMobile Global Limited today announced the results for the First Quarter FY2014 ended June 30, 2013. Revenue for Q1 FY2014 was Rs1,897 million, an increase of 2.4% y-o-y 3.0% q-o-q. Normalized for forex impact, EBITDA increased 14.2% y-o-y to Rs419 million at 22.1% margin.

Business Highlights

  • Won a major deal with MTN for provision of RBT services across 21 countries
    • Likely revenue: $80-$120 million over 5 years
    • Revenue share model with no up-front fee or minimum guarantee
  • Closed the acquisition of LiveWire Mobile on July 19, 2013; integration efforts initiated
  • 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, since July 11th, 2013
    • Moderate Impact expected due to
      • User experience and technical challenges related to second confirmation from a third-party consent gateway system
Y-o-Y Highlights (Q1 FY2014 vs. Q1 FY2013)
  • Net Revenue of Rs1,897 million, up 2.4% as compared to Q1 FY2013
  • International businesses increased by 19.8% to Rs1,253 million and contributed 66.0% of the Net Revenue in Q1 FY2014 (vs. 56.5% in Q1 FY2013)
    • International revenue was primarily driven by LATAM, which recorded a strong growth of 49.5% as a result of the Company’s past investments
    • African and European businesses also recorded robust growth of 28.2% and 12.5%, respectively
  • Domestic business declined 20.1% to Rs644 million as a result of continued adverse scenario arising from the implementation of the TRAI regulations
    • Contributed 34.0% of the Net Revenue in Q1 (vs. 43.5% last year)
  • EBITDA increased 44.4% to Rs518 million at 27.3% margin
    • Included forex gain of Rs99 million mainly due to appreciation of various currencies against USD
    • EBITDA normalized for forex impact grew 14.2% to Rs419 million at 22.1% margin
  • Net Profit increased 47.6% Rs140 million at 7.4% margin
    • Normalized for Forex impact, Net Profit decreased 17.0%
  • Earnings per share was Rs1.23 as against Rs0.82 in Q1 FY2013
Q-o-Q Highlights (Q1 FY2014 vs. Q4 FY2013)
  • Net Revenue increased by 3.0% to Rs1,897 million
    • International revenues continued to grow and increased 6.7% as compared to Q4 FY2013
    • India revenues declined marginally by 3.5% over previous quarter
  • EBITDA increased by 48.1% to Rs518 million at 27.3% margin
    • Normalized for forex impact, EBITDA declined 3.3%
  • Net Profit increased by 30.0% to Rs140 million at 7.4% margin
    • Normalized for Forex impact, Net Profit declined 51.7%
  • Earnings per share was Rs1.23 as against Rs0.95 in Q4 FY2013

About OnMobile

OnMobile [NSE India: ONMOBILE], headquartered in Bangalore, India, and with offices in all regions of the world, delivers millions of music plays daily to mobile customers worldwide. Based on current deployments, OnMobile has the potential to reach more than 1.1 billion mobile users across several geographies. For further information, please visit www.onmobile.com

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