OnMobile back in the black, international revenue up 8%
OnMobile Global Ltd, the country's largest mobile value added service (VAS) company, has recorded a consolidated net profit of Rs 1.26 crore for the second quarter ended September 30, 2015 as against a loss of Rs 1.21 crore in the same quarter a year ago. Overall revenue was flat at Rs 207 crore.
The company was back in the black on account of lower costs and net forex gain of Rs 4.5 crore. The depreciation of the Indian rupee vis-Ã -vis the US dollar and Euro also aided the company's numbers.
OnMobile's overall expenditure in Q2 was down 5.2 per cent to Rs 204.7 crore.
OnMobile's international business, which accounts for 78 percent of its revenue, grew by eight per cent. Among developed markets, Europe recorded year-on-year growth of 49.2 per cent. Revenue from Latin American slumped 23.9 per cent while India revenue declined 21.6 per cent to Rs 45.1 crore.
The VAS space is under pressure in India due to the proliferation of smartphones and the tight control exerted by telecom operators over their subscribers' VAS revenues.
The company's CVAS (Carrier VoIP and Application Solutions) business won contracts from two major business operators in Sri Lanka. The company's ring back tone business grew 16 per cent in Bangladesh.
OnMobile also secured contracts from Bharti Airtel's Nigerian operations and a major Lesotho-based operator for its ring back tone business.
Founded in 2000 by Mouli Raman and Arvind Rao, OnMobile offers content management, aggregation and distribution, voice short codes and missed call alerts among other VAS services. Both co-founders are no longer associated with the company. Presently, Rajiv Pancholy is the CEO and managing director of the company.