RadioandMusic
| 20 Aug 2019
Q2-2016: OnMobile YoY revenue flat: EBIDTA up 41.7 per cent

BENGALURU: Mobile music play service company OnMobile Global Limited (OnMobile) reported almost flat (decline of 0.2 per cent ) consolidated revenue  or Income from Operations or TIO for the quarter ended September 30, 2015 (Q2-2016, current quarter) at Rs 206.98 crore as compared to the Rs 207.45 crore in Q2-2015. TIO for the current quarter grew 2.6 per cent as compared to the Rs 201.82 crore in the immediate trailing quarter.

The company’s EBIDTA in the current quarter grew 41.7 per cent  to Rs 39.34 crore (19 per cent  margin) as compared to the Rs 27.77 crore (13.4 per cent  margin) in the corresponding year ago quarter and was 12 per cent  more than the Rs 35.12 crore (17.4 per cent  margin) in the immediate trailing quarter.

OnMobile reported profit after tax (PAT) of Rs 1.26 crore(0.6 per cent  margin) in Q2-2016 as compared to a loss of  Rs 1.21 crore in Q2-2015 and a loss of Rs 0.16 crore in Q1-2016.

Business Performance

OnMobile says that its International revenue grew by 8.0 per cent YoY and 2.8 per cent QoQ. Europe recorded a revenue growth of 49.2 per cent YoY and 4.4 per cent  QoQ, while in Other Emerging Markets, revenue grew by 6.7 per cent YoY and 7.0 per cent QoQ to Rs 37.3 crore (18 per cent  of TIO).

Its Latin America revenue was down by 1.5 per cent QoQ and 23.9 per cent YoY, respectively. However, Latin America revenue grew by 5 per cent QoQ, excluding the forex impact of fluctuations in local currencies.

India Business

OnMobile’s India revenue was Rs 45.1 crore (21.8 per cent of TIO) in Q2-2016, a growth of 1.7 per cent QoQ and reduction of 21.6 per cent YoY. It says that it has won western circles from Airtel for Ring Back Tone business to become the largest Ring Back Tone partner for Airtel in India. OnMobile says that this win increase its reach in Airtel from over 6 crore subscribers to over 11.5 crore subscribers.

The company says that CVAS, a direct to consumer product, has been launched in a large operator in India.

Let us look at some of the other numbers reported by OnMobile

Total Expenditure (TE) in the current quarter declined 5.2 per cent to Rs 204.74 crore (98.9 per cent of TIO) as compared to the Rs 215.92 crore (104.1 per cent of TIO) in Q2-2015, but was 0.4 per cent more than the Rs 203.97 crore (101.1 per cent of TIO) in Q1-2016. 

A major expense head for the company is Content Fee and Royalty (CFR). OnMobile paid 41.3 per cent higher CFR in the current quarter at Rs 67.55 crore (32.6 per cent of TIO) as compared to the Rs 47.79 crore (23 per cent of TIO) in Q2-2015 and 5.9 per cent more than the Rs 63.76 crore (31.6 per cent  of TIO) in Q1-2016.

The company’s other sales and services cost declined 52.5 per cent to Rs 9.72 crore (4.7 per cent of TIO) in Q2-2016 as compared to the Rs 20.46 crore (9.9 per cent of TIO) in Q2-2015 and was 15.6 per cent lower than the Rs 11.52 crore (5.7 per cent of TIO) in the previous quarter.

OnMobile says that it has done a ‘Headcount optimisation’ during the last financial year and quarter, which has resulted in a reduction of manpower cost. It says that its employee base at the end of Q2-2016 was 1,075. The company’s Employee Benefits Expense (EBE) in the current quarter declined 23.6 per cent to Rs 55.47 crore (26.8 per cent of TIO) in Q2-2016 as compared to the Rs 72.63 crore (35 per cent of TIO) in Q2-2015 and was 3.9 per cent less than the Rs 57.70 crore (28.6 per cent of TIO) in Q1-2016.