Q2 FY2014 Net Revenue increased by 25.2% and EBITDA declined by 3.6% y-o-y

BANGALORE, India – October 29, 2013:OnMobile Global (“OnMobile”) today announced the results for the Second Quarter FY2014 ended September 30, 2013. Revenue for Q2 FY2014 was Rs2,250 million, an increase of 25.2% y-o-y and 18.6% q-o-q. This includes financials of OnMobile Live with effect from July 19, 2013.

Business Highlights

• Successfully migrated RBT in another large operator in Spain. With this, OnMobile will reach over 90% mobile subscriber base in Spain
• Launched RBT services with an operator in Qatar
• Domestic revenues impacted by the TRAI Consent Gateway guidelines, released on July 11, 2013
• Completed the acquisition of LiveWire Mobile (now OnMobile Live) and integration process under way

Corporate Developments

• OnMobile further strengthened its Board with two high-profile appointments
  • On October 8, 2013, the Company appointed Mr. Rentala Chandrashekhar, as an independent non-executive director. He was the Secretary, Department of Telecommunications for Government of India
  • On October 29, 2013, the Company appointed Ambassador (Ret.) Barry B. White. He is an eminent lawyer and a thought leader. In October 2009, he was appointed as the US Ambassador to the Kingdom of Norway/ Chief of Mission of the Embassy in Oslo

Q2 FY2014 vs. Q2 FY2013: Y-o-Y Highlights

Including LiveWire

• Net Revenue of Rs2,250 million, up 25.2% as compared to Q2 FY2013, despite a 31.8% decline in domestic revenues
• International businesses increased by 65.1% to Rs1,745 million and contributed 78% of the Net Revenue in Q2 FY2014 (vs. 59% in Q2 FY2013)
  • International revenue was primarily driven by North America (upon consolidation of LiveWire) and Europe
• Domestic revenue declined 31.8% to Rs506 million as a result of the implementation of TRAI Consent Gateway guidelines
• EBITDA declined by 3.6% to Rs335 million on account of loss of Rs24 million of LiveWire
• Net Profit declined from Rs62 million to Rs15 million on account of net loss of Rs85 million of LiveWire
• Earnings per share was Rs0.13 as against Rs0.55 in Q2 FY2013

Excluding LiveWire

• Net Revenue of Rs2,069 million, up 15.1% as compared to Q2 FY2013
• International businesses increased by 47.9% to Rs1,563 million and contributed 76% of the Net Revenue in Q2 FY2014 (vs. 59% in Q2 FY2013)
  • International revenue was primarily driven by Europe and Africa
• EBITDA increased by 3.3% to Rs359 million
  • Adjusted for one-time expenses, EBITDA increased by 12.5%
• Net Profit increased by 60.9% to Rs100 million
• Earnings per share was Rs0.86 as against Rs0.55 in Q2 FY2013

Q2 FY2014 vs. Q1 FY2014: Q-o-Q Highlights

Including LiveWire

• Net Revenue increased by 18.6% to Rs2,250 million
  • International revenues continued to grow and increased 39.3% as compared to Q1 FY2014
  • India revenues declined by 21.5% over previous quarter
• EBITDA decreased by 19.9% to Rs335 million
• Net Profit declined from Rs141 million to Rs15 million on account of net loss of Rs85 million of LiveWire
• Earnings per share was Rs0.13 as against Rs1.23 in Q1 FY2014

Excluding LiveWire

• Net Revenue increased by 9.1% to Rs2,069 million despite a 21.5% decline in domestic revenues
  • International revenues continued to grow and increased 24.8% as compared to Q1 FY2014
• EBITDA decreased by 14.3% to Rs359 million primarily on account of change in revenue mix and one-time content reversals in Q1 FY2014
• Net Profit declined from Rs141 million to Rs100 million
• Earnings per share was Rs0.86 as against Rs1.23 in Q1 FY2014

H1 FY2014 vs. H1 FY2013: Y-o-Y Highlights

Including LiveWire

• Net Revenue increased by 13.6% to Rs4,147 million
  • International revenues continued to grow and increased 42.6% as compared to H1 FY2013 and contributed 72% of the Net Revenue in H1 FY2014 (vs. 58% in H1 FY2013)
  • India revenues declined by 25.7% over H1 FY2013
• EBITDA increased by 6.8% to Rs754 million
• Net Profit declined marginally from Rs157 million to Rs156 million
• Earnings per share was Rs1.36 as against Rs1.38 in H1 FY2013

Excluding LiveWire

• Net Revenue increased by 8.6% to Rs3,966 million despite a 25.7% decline in domestic revenues
  • International revenues continued to grow and increased 33.9% as compared to H1 FY2013
• EBITDA increased by 10.1% to Rs778 million
• Net Profit increased by 51.9% to Rs241 million
• Earnings per share was Rs2.09 as against Rs1.38 in H1 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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