OnMobile reports net loss even as revenue rises 28% in Q3
The country's largest mobile value added service (VAS) firm OnMobile Global saw further deterioration in its bottomline reporting net loss of Rs 8.37 crore for the quarter ended December 31, 2013, as against net profit of Rs 20.6 crore in the year ago period.
The company has been seeing a sequential decline in margins after the LiveWire acquisition but its other income had supported the company from moving into the red in the second quarter. This cushion was not available last quarter pulling down the firm into the red.
In particular, the company's content fee & royalty payments besides other sales & services expenses and depreciation provision rose sharply to sink its margins.
While its domestic revenues continues to decline due to the implementation of TRAI Consent Gateway guidelines, its international business buoyed overall revenues by 28 per cent year on year to Rs 225.47 crore, the same as the previous quarter ended September 30.
OnMobile Global scrip rose 1.56 per cent to end the day at Rs 32.6 a share on the BSE in a flat Mumbai market on Tuesday. The results were disclosed after trading stopped for the day.
The firm had completed the acquisition of US-based VAS firm LiveWire during the first quarter of this financial year.
In the recent past, the firm was hit by corporate governance issues related to its co-founder and former chief Arvind Rao. Last month OnMobile Global board declassified Rao as 'promoter' of the company.