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OnMobile Global Results: Latest Quarterly Results & Analysis

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OnMobile Global Ltd. 09 Feb 2024 12:20 PM

Q3FY24 & 9MFY24 Quarterly Result Announced for OnMobile Global Ltd.

Telecom services company OnMobile Global announced Q3FY24 & 9MFY24 results:

Financial Highlights for Q3FY24:

  • Q3FY24 revenue at Rs 1,222 million, down 10.3% QoQ due to reconciliation adjustments with customers recognized last quarter.
  • Q3FY24 international revenue is 92% of total revenue.
  • During the quarter, opex cost reduced by 8.6% to Rs 114 million.
  • Mobile gaming: 14 operators went live in Q3 FY24.

Financial Highlights for 9MFY24:

  • 9MFY24 Gross profit margin stood at 53.2% vs 52.3% YoY.
  • 9MFY24 EBITDA at Rs 248 million vs Rs 107 million in 9MFY23, 2.3x YoY; Operating profit is over 5x YoY.
  • 9MFY24 PAT at Rs 160 million, with a margin of 4.1%.
  • Mobile gaming revenue increased by 38.8% YoY to Rs 604 million during 9MFY24.
  • Mobile gaming: 89 operators went live in 9MFY24.

Commenting on the results, V.S. Ganesh, Managing Director, Page Industries said, “This quarter’s topline & profitability got jolted by delayed launches and one-off billings done in the last quarter with some customers. Our gaming business, saw growth with an increase of 38.8% YoY during 9MFY24.”

Commenting on the results, Radhika Venugopal, VP Finance, said, “For 9MFY24, despite the decline in top-line, EBITDA and Operating profit saw a growth of 2.3x and over 5x on YoY basis respectively. We are witnessing a steady increase in the number of active subscribers for our Gaming Business, which will help us improve revenue & profitability in the coming quarters.”

Result PDF

Other Telecom Services company OnMobile Global announced Q1FY24 results:

  • PAT increased to Rs 98 million with a margin of 7.2%
  • EBITDA at Rs 123 million with a margin of 9% for Q1FY24
  • Q1FY24 revenues at Rs 1,396 million, marginally up by 3.8% QoQ.
  • Gross profit stood at Rs 771 million, a growth of 10% on YoY basis
  • Challenges Arena: Revenue increased by 2x on a YoY basis and grew 22x over the last 9 quarters
  • Challenges Arena: 73 cumulative customer confirmations and 54 customers live as on Q1FY24
  • Challenges Arena: 21.34 million gross subscribers as on Q1FY24
  • ONMO B2B: 25 Customers confirmed (10 live). Revenue grew 18% on QoQ basis
  • In Q1FY24 manpower cost decreased by 13.3% QoQ

Commenting on Q1FY24 results, Sanjay Baweja, MD & Global CEO, OnMobile, said, “The quarterly revenue performance has been better than last few quarters, and we are focused to scale it further, for rest of the year. The revenue uptick for ONMO has been encouraging, and it will continue to improve over the upcoming quarters. OnMobile continues to stay focused on profitability, targeting even better results in H2FY24. We are determined to achieve the objective of creating cutting-edge mobile gaming solutions through our focused execution and continuous efforts to digitize our core B2B business.”

Asheesh Chatterjee, Global Group CFO, said, “Gross revenue saw a modest sequential growth of 3.8%, which is a good start for the FY24. We achieved a significant quarterly growth in EBITDA through cost optimization efforts. Further, our PAT stood at Rs 98 million, which shows a healthy sign for the upcoming quarters.”

 

Result PDF

OnMobile Global announced Q2FY23 results:

  • Challenges Arena: Revenue increased by 634% on a YoY basis and grew close to 14x in the last six quarters
  • Challenges Arena: 55 cumulative customer confirmations and 33 customers live as on November 1, 2022
  • Challenges Arena: 10.54 million gross subscribers as of November 1, 2022
  • Challenges Arena: By November 1, 2022, the Net active base increased to 2.3 million from 1.66 million in Q1FY23
  • ONMO B2B: 18 customers confirmed (4 live) as on November 1, 2022
  • Q2FY23 revenues at Rs 1,367 milion. Forex (Euro) impact on revenue Rs 16 million QoQ and Rs 61 million YoY. Gross profit stood at Rs 683 million, a growth of 3.3% YoY. Q2FY23 revenue growth would be 4.5% YoY excluding Euro forex impact
  • H1FY23 revenues at Rs 2,777 million, up by 2.2%. Gross profit stood at Rs 1,391 million, a growth of 6.0% YoY basis
  • In Q2FY23, marketing cost grew by 4.5% QoQ and 100% YoY, primarily due to investments in new launches (CA) and employee benefit costs include a one-time cost due to staff optimisation of Rs 30 million 
  • DSO stood at 123 days in Q2FY23, improved by 11 days on a QoQ basis and five days on a YoY basis

Sanjay Baweja, CEO & MD, OnMobile, said, “While we have seen temporary impact on revenue and profitability due to some customer issues, we continue to invest in marketing which will increase our profitability in the medium to long run. Challenges Arena, our mobile quiz & gaming app launched in FY22, continues to gain substantial traction. Our focused execution, along with our ongoing efforts to digitise our core B2B businesses, positions us well to realize our objective of developing cutting-edge mobile gaming solutions.”

Asheesh Chatterjee, Global Group CFO, said, “Revenue was flat on a YoY basis due to onetime Euro depreciation impact and higher marketing spend, but this cost will reduce going ahead. CA is going as per plan, and the cost will stabilize soon. ONMO had a good start and is poised for further growth in the upcoming quarters.”

 

Result PDF

OnMobile Global announced Q1FY23 results:

  • Challenges Arena: Revenue increased by 11 times on YoY basis
  • Challenges Arena: 38 cumulative customer agreements for Challenges Arena by June’22 (20 live as on Q1FY23)
  • Challenges Arena: Now live with 20 Operators cumulative in Q1FY23 as compared to 16 in Q4FY22, reflecting growth of 25% QoQ
  • Challenges Arena: 6.7 million cumulative gross additions of subscribers by June’22
  • Challenges Arena: Q1FY23 net active base increase to 1.66 million from 1.33 million in Q4FY22
  • ONMO B2B: 12 Customers confirmed (3 live).
  • Q1FY23 revenue stood at Rs 141.0 crore, an increase of 5.9% QoQ and 4.4% YoY; Gross profit for the quarter increased by 9.0% QoQ
  • Manpower cost grew by 15.3% QoQ to Rs 32.1 crore primarily due to rise in hiring costs and investment in specific talent skills
  • Marketing cost grew by 15.7% QoQ and 103.7% YoY to Rs 16.2 crore primarily due to investments in our new product lines- ONMO and Challenges Arena 
  • EBITDA at Rs 7.8 crore with a margin of 5.8% for the quarter. 

Commenting on Q1FY23 results, Sanjay Baweja, CEO & MD, OnMobile, said, “The quarter revenue performance was in line with our expectations, thanks to continued high growth in Challenges Arena. We are investing in marketing for sustained revenue growth, which is impacting profitability temporarily. Our other new gaming product ONMO B2B has started generating revenue from the current quarter. We are confident that our focused execution poise us well to achieve our vision to build cutting-edge mobile gaming products while simultaneously working on digitizing our core B2B businesses.”

 

 

Result PDF

OnMobile Global declares Q4FY22 result:

  • Challenges Arena: Revenue has been doubling every quarter; achieved a mark of over Rs 3.5 crore monthly revenue in March’22
  • Challenges Arena: 26 cumulative customer agreements by March’22, up 24% QoQ
  • Challenges Arena: Now live with 16 Operators cumulative in Q4 FY’22 as compared to 8 in Q3 FY’22, reflecting a growth of 100% QoQ
  • Challenges Arena: 4.4 Mn cumulative gross additions of subscribers by March 2022
  • Challenges Arena: Net active base doubled every quarter in FY22 – Q4FY22 net active base increased to 1.33 Mn from 0.14 Mn in Q1FY22
  • ONMO: Launched B2C Cash battles in India
  • ONMO: Launched in Chingari beta and will ramp up to the entire user base soon
  • Chingari investments: valuation doubled as compared to the initial investment
  • FY’22 revenue stood at INR 544.3 crore, a de-growth of 5.5% YoY primarily impacted by Euro depreciation and customer-driven policies in Spain, which have since been mitigated
  • Marketing cost grew by 50.9% YoY to INR 39.8 crore for FY’22 on account of investments in new launches resulting in lower EBITDA
  • EBITDA at INR 45.9 crore with a margin of 8.8% for FY’22

Commenting on FY22 results, Sanjay Baweja, CEO & MD, OnMobile, said, “We are happy with the year’s overall performance and the quarter gone by. We are on a transformational journey as we pivot our focus to mobile gaming. We have launched ONMO our social esports mobile gaming platform. Challenges Arena, our mobile quiz gaming app launched earlier, has shown huge growth during the year. We will continue to see significant demand for eSports and social gaming. Our vision is to build cutting-edge mobile gaming products while simultaneously working on digitizing our core B2B businesses.”

Asheesh Chatterjee, Global Group CFO, said, “We are pleased to report another quarter of consistent growth in our new endeavours while maintaining margins. Our revenue stood at Rs 544 crores for FY22. Cost optimization efforts continued and we managed to sustain EBITDA margin at 8.8% for FY’22”

Result PDF

Telecom Services company OnMobile Global declares Q3FY22 result:

  • 21 cumulative customer agreements in Challenges Arena and PAT grew over 3 times QoQ to INR 8.7 crore
  • Challenges Arena: Now live with 8 Operators cumulative in Q3 FY’22 as compared to 5 in Q2 FY’22
  • Challenges Arena: 3.1 Mn cumulative gross additions of subscribers by January 2022
  • Challenges Arena: Revenue doubled every quarter for the last 3 quarters
  • ONMO: Launched real money gaming battles and tournaments
  • ONMO: Launched on Chingari short video app
  • ONMO B2B: partnered and launched with Dialog Sri Lanka
  • PAT grew over 3 times QoQ to INR 8.7 crore with a margin of 6.5% during the quarter 
  • Revenue grew by 1.9% QoQ to INR 139 crore
  • Savings of 7.9% in manpower costs YoY
  • Marketing cost grew by 14.3% QoQ and 33.8% YoY primarily due to our increased investments in digital space
  • EBITDA at INR 13.4 crore with a margin of 10.1% for the quarter witnessing a growth of almost 2 times QoQ basis

 

Result PDF

Highlights:

  • ONMO D2C Cash beta launched on 3rd November'21 across permissible states in India 
  • ONMO’s first B2B 5G Telco launched on 5th November'21 
  • Challenges Arena: Now live with 5 Operators cumulative in Q2 FY22 as compared to 1 in Q1 FY22
  • Challenges Arena gross additions of 766K subscribers in Q2 FY22 vs 561K in Q1 FY22 
  • Completed 100% acquisition of Rob0 stake. This investment is one of the major steps towards the creation of ONMO.
  • Chingari Investment of USD 1.4 Mn at a valuation of 2 times our initial investment 
  • Revenue growth of 1.2% QoQ at INR 137 crore.
  • Our cost rationalization efforts are continuing and have yielded savings with a reduction of 11.5% YoY in manpower costs. However, it grew by 8.6% QoQ mainly due to onetime severance pay of INR 3.0 crore.
  • EBITDA at INR 9.0 crore with a margin of 6.9% for the quarter. The decline in EBITDA was due to increase in severance cost of INR 3.0 crore and Opex cost in the quarter. Normalized EBITDA was at INR 14.8 crore at 11.4% Margin
  • Operating Profits of INR 6.3 crore with a margin of 4.8%. Normalized Operating Profit is INR 12.1 crore at 9.3% Margin.

 

 

Result PDF

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