Home >Companies >OnMobile narrows Q2 loss by 94%

Mumbai: Bangalore-based mobile value added services firm, OnMobile Global Ltd., reported a net loss of Rs1.2 crore in the three months ended 30 September, compared with a net profit of Rs1.5 crore in the year-ago period.

However, the company significantly narrowed its net loss from the Rs23.9 crore loss it recorded in the June quarter. It attributed some of this reduction to higher other income realized in the quarter on account of a Rs6.7 crore profit from the sale of its French subsidiary Voxmobili SA and foreign exchange gain of Rs3 crore.

The company sold Voxmobili to mobile cloud solutions firm Synchronoss Technologies Inc on 15 July for $26 million.

Revenue declined by 7.7% to Rs207.5 crore in the September quarter, compared with Rs225 crore in the year-ago period. The company said revenue was adjusted for the sale of Voxmobili.

Quarter-on-quarter, revenue rose 13% from the June quarter, while earnings before interest, taxes, depreciation and amortization (Ebitda) rose 77.5% to Rs27.8 crore.

The company said its India revenue grew 13.8% to Rs57.6 crore from a year ago, while its international revenue came in flat at Rs149.9 crore, after normalizing for Voxmobili revenue.

Cash and cash equivalents in the quarter rose to Rs289.8 crore from Rs146.3 crore a year ago, on account of the profit from the sale of Voxmobili, improved collections and better working capital.

During the quarter, OnMobile appointed Francois-Charles Sirois as non-executive chairman and Praveen Kumar as chief financial officer.

On 26 August, Mint reported that OnMobile had sacked nearly 300 employees and may lay-off another 300 employees as part of company restructuring to reduce costs.

At 10.45 am, OnMobile shares were up 8.69% to Rs35.65 apiece, while the benchmark Sensex was up 1.14% to 27,658.69 points.

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