OnMobile's revenues up 4.8% to Rs 198Cr in Q1; domestic business continues to slide

VCCircle_OnMobileIndia's public listed mobile value added service (VAS) company OnMobile Global Ltd has reported revenue of Rs 198 crore up by 4.8 per cent in the quarter ended June 30, 2014 over the year ago period with decline in domestic revenues partly neutralising the growth in developed markets.

The international business revenue stood at Rs 152.5 crore, rising 21.7 per cent over Q1 FY14 and accounted for 77 per cent of the overall revenue of the company. While the developed markets revenue grew 72.3 per cent, it was counterbalanced by slow growth in home market as well other emerging markets.

India revenue declined 28.1 per cent year-on-year and 27.8 per cent sequentially. Latin America remained steady while other emerging markets declined 4.6 per cent.

Overall, the company reported a loss of Rs.23.9 crore as compared to a profit of Rs 14 crore in Q1 FY14 due to the increased in foreign exchange losses. The company's EBITDA declined almost two thirds to Rs 15.6 crore in the quarter.

In this quarter, OnMobile completed the divestiture of French subsidiary Voxmobili S.A to New Jersey-headquartered Synchronoss Technologies Inc, a provider of synchronisation technology products for $26 million.

It has also appointed two new independent non-executive directors, Nancy Cruickshank and Bruno Ducharme to its board.

Nancy Cruickshank is a serial entrepreneur and currently the founder & CEO of MyShowcase Ltd, an online and direct beauty retailer that works on building a distribution channel for leading beauty brands through a growing base of lady stylists. Bruno Ducharme is chairman of TIW Capital Partners, a private investment company.

Founded in 2000 by Mouli Raman and Arvind Rao, OnMobile offers services like content management, aggregation and distribution, voice short codes, missed call alerts, multimedia push services, mobile search, ringtones, ring-back tones, phone backup, cloud address book, voice portals, music products, mobile radio, entertainment products like football, cricket, quizzes and gaming solutions, movies and a safety app called Help Me on Mobile. Both the co-founders are no more associated with the company. There has been a significant change in the leadership of OnMobile in the past. Besides seeing exit of two CEOs, in the last three years, it has also lost about three CFOs, the last one being Rajesh Kunnath.

Headquartered in Bangalore, the company offers services in 59 countries. With over 1,700 employees worldwide, it has offices in London, Paris, Madrid, Silicon Valley, Miami and Seattle.

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