OnMobile Global stock plunges over 3% post Q1FY23 numbers

4 Aug 2022 , 10:57 AM

OnMobile Global Limited, the global leader in mobile entertainment has announced the financial results for the first quarter of FY23 ended June 30, 2022.

Highlights:

• The Revenue increased by 11% on YoY basis
• There has been 6.7 million cumulative gross additions of subscribers by June’22
• Q1FY23 net active base rises to 1.66 million from 1.33 million in Q4FY22
• Q1FY23 revenue stood at Rs141.0 crore, an increase of 5.9% QoQ and 4.4% YoY; Gross profit for the quarter increased by 9.0% QoQ 
• Manpower cost grew by 15.3% QoQ to Rs32.1 crore primarily due to rise in hiring costs and investment in specific talent skills
• Marketing cost grew by 15.7% QoQ and 103.7% YoY to Rs16.2 crore primarily due to investments in our new product lines- ONMO and Challenges Arena
• EBITDA at Rs7.8 crore with a margin of 5.8% for the quarter.

Commenting on Q1FY23 results, Sanjay Baweja, CEO & MD, OnMobile, said, “The quarter performance was in line with our expectations. We are investing in marketing strategy for sustained revenue growth. Our other new gaming product ONMO B2B has started generating revenue from this current quarter. We are highly optimistic that our focused execution poise us well to achieve our vision to build cutting-edge mobile gaming products while simultaneously working on digitizing our core B2B businesses.”

Asheesh Chatterjee, Global Group CFO, said, “We are delighted to logged healthy fiscal year 2023 in our new endeavours. Our revenue increased by 5.9% QoQ to Rs141.0 crore for the quarter. Gross profit witnessed a growth of 9.0% on QoQ basis. Our cost optimization efforts continued and we managed to sustain EBITDA margin at 5.8% for Q1FY23.”

At around 10:42 AM, OnMobile Global was trading at Rs123.75 per share lower by Rs4.10 or 3.21% on the BSE.