Updated: OnMobile 2008 Profit At Rs. 60.3 crores, Revenues At Rs. 269.3 Crores

OnMobile Global, India’s largest mobile Value Added Services (VAS) company, today announced its first earnings results post listing on the stock exchanges. While the company ended the year with a net profit of Rs. 60.3 crores, an increase of Rs. 79 percent over FY07, they appear to have taken a significant hit in the fourth quarter (Q408). During the quarter, while revenues were healthy at Rs. 71.8 crores, the company had a net profit of just Rs. 4.4 crores. We’re awaiting a response from OnMobile for details; apparently are some one-time costs.

For the financial year, OnMobile had consolidated revenues of Rs. 269.3 crores for the year, up by 97 percent from last year. The EBITDA was Rs. 112.3 crores, at around 40 percent. OnMobile has given an annual guidance of 60-65 percent revenue growth, but refrained from giving quarterly guidance. They say that telecom sales cycles are long, and VAS doesn’t fit into the quarterly reporting pattern.

During the year the company set up a wholly owned subsidiary in Indonesia, and acquired 100 percent stake in VoxMobili SA for an aggregate investment amount of Rs 145.7 crores. The company ended the day down 1.57 percent down at Rs. 690.75 on the Bombay Stock Exchange, while the market was down 0.52 percent. We’ll have more from the company and the earnings conference call.

Update: I just spoke to Rajesh Moorti, CFO of OnMobile: he says that OnMobile numbers should be looked at on as annual basis. In this year in particular, the net profit was skewed due to a difference in accounting standards followed by VoxMobili, which recognises revenues only on project completion. This causes a lumpiness in reporting of revenues, where some quarters it appears that performance is significantly better than in others.

This is evident from the comparison of standalone results with consolidated results: OnMobile reported a standalone net profit of Rs. 11.8 crores for the Q4, while after factoring in the Rs. 7 crore expenses due to the accounting lumpiness, the consolidated net profit was Rs. 4.5 crores. OnMobile has also accounted certain one-time expenses during this fiscal year, excluding which the PAT margin would be approximately 24 percent, as against 24.6 percent of last year. The company is changing accounting practices for VoxMobili, and in the coming year, this lumpiness will not be there.

Details: Consolidated Results | Standalone Results | Earnings Call Notes

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