NEW DELHI: Net losses at Onmobile Global narrowed in the quarter ended March 2016 (Q4 FY16). The mobile VAS and ring back tone company reported a loss of Rs 6.11 crore compared to the net loss of Rs 7.63 crore in the preceding quarter and from Rs 14.59 crore in the same quarter last year.
Revenues in the company declined marginally 3.32% to Rs 200.12 crore compared to Rs 207 crore the preceding quarter. Onmobile had reported revenues Rs 214 crore in the same quarter last year, a decline of 6.48%. Cash reserves for the company increased 15.31% to Rs 320.9 crore from Rs 278.3 crore in the preceding quarter.
Revenues and profitability were hit due to foreign currency fluctuations again. This time, the Egyptian government devalued the country’s currency and as a result, Onmobile incurred a cost of Rs 3.28 crore. The Venezuela Government introduced a new foreign currency exchange system which resulted in devaluation of Venezuelan Bolivar Fuerte and a cost of Rs 80 lakh. In the preceding quarter, the Argentinian government devalued Argentine Peso (ARS) which led to a foreign exchange loss of Rs 0.65 crore.
EBITDA decreased by 3.2% q-o-q to Rs 38.1 crore. Employee costs decreased 1.99% from the preceding quarter to Rs 51.49 crore. Employee costs were 25.78% of total costs. For context, three years ago, employee cost was 40% of total costs.
