OnMobile Q2 revenue down 6.5% to Rs 137 crore
The company earned almost 85% of its revenue from videos and tones products
Total expenditure declined to Rs 127.6 crore from Rs 130.7 crore. Content Cost, Contest / Gratification Cost (COGS) was down at Rs 71.4 crore from Rs 73 crore. Manpower cost jumped 12% to Rs 32.6 crore. Other operating expenditure was up 22.3% to Rs 15.6 crore from Rs 12.7 crore.
The company's net profit was down 65.1% to Rs 2.7 crore from Rs 7.6 crore. EBITDA declined 41.2% to Rs 9 crore from Rs 15.4 crore due to an increase in severance cost of Rs 3 crore and Opex cost in the quarter. Normalised EBITDA was at Rs 14.8 crore at an 11.4% margin.
On cost rationalisation, the company said that its 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 one-time severance pay of Rs 3 crore.
In terms of product offerings, ONMO D2C Cash beta launched on 3rd November’21 across permissible states in India. ONMO’s first B2B 5G Telco launched on 5th November.
Challenges Arena is now live with five operators cumulative in Q2 FY’22 as compared to 1 in Q1 FY22. Challenges Arena had gross additions of 766K subscribers in Q2 FY’22 vs 561K in Q1 FY22.
The company completed a 100% stake acquisition in AI firm RobO. This investment is one of the major steps towards the creation of ONMO.
Further, the company invested $1.4 million in Chingari at a valuation of 2 times its initial investment.
Headquartered in Bangalore, India and with a presence in many countries across the world, OnMobile offers a wide array of products such as Videos, Tunes, Games & Contests. Based on current deployments, OnMobile has over 80 million monthly users and over 97 customers across the globe.
