It isn’t easy to give words to success but the markets and those who dive deep into shares and stocks depend on fiscal reports to guide them on. To goad them along as well, if I may add. These adventurers in the fiscal universe know that success is never final; failure is never fata and that it is the courage to continue that counts. OnMo is an apt example.
For the uninitiated, OnMo or OnMobile Global Limited (“OnMobile”) is the global leader in mobile gaming & entertainment. This company has announced the financial results for the First quarter of FY24 ended June 30, 2023. The signs are encouraging for those who are on the lookout for companies where the focus on new products and digitizing its core business to drive revenue growth and profitability is grounded and real and not a mere fantasy of publicists. According to analysts, the OnMo share price closed @ 77.95 on 04 August and a fair sprinkling of them recommend sell for long-term with stoploss of 89.00 and buy for short-term with stoploss of around 77.00. What is equally vital is that the overall rating of OnMobile Global is 4.0, with Company culture being rated at the top and given a rating of 4.1. 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 H2 FY24. 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.”
Companies like MINCOM, KPITC, KALECO, ABMKN, FINTEC, and 3IINFL definitely have a competitor that is all set to get a lot of applause. This company which was originally incorporated in California and has hopped from being known as Onscan technologies India Private Limited to being OnMobile Asia Pascific Private Limited in 2001 to its current name in mid-2007. Going further, OnMobile “provides mobile entertainment products & solutions such as Tones and Videos & Editorial to telecom operators and media companies. Outside this traditional core, we are focused on building cutting-edge Mobile Gaming products such as ONMO & Challenges Arena which we take to market through B2B and D2C channels.” Factors that are relevant to the fiscal markets have obviously prompted Asheesh Chatterjee, Global Group CFO, to add that the, “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 INR 98 Mn, which shows a healthy sign for the upcoming quarters.” Positive signs indeed!
The highlights of the press release of OnMobile further adds:
PAT increased to INR 98 Mn with a margin of 7.2%
EBITDA at INR 123 Mn with a margin of 9.0% for the quarter
Q1FY24 revenues at INR 1,396 Mn, marginally up by 3.8% QoQ. Gross profit stood at INR 771 Mn, a growth of 10.0% 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 Mn 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
Howard Shultz once wrote about success being best when shared. I believe, this company follows this perceptive notion rather well.
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Arvind Passey
09 August 2023
