OnMobile Global tanks into red

Onmobile Global has tanked into the red today, currently down almost 7% at Rs.30.40, closer to its intra day low at Rs.29.90. Its 52-week low is at Rs.19.05.

The stock has tumbled down after it posted a net loss of Rs.8 crore for Q3FY14, compared to a net profit of Rs.21 crore in Q3Fy13 and net profit of Rs.15 crore in Q2FY14. This was on account of the one-time impact of minimum guarantee of Rs. 14 crore  (7% of revenues), for a contract in Europe.

The sequential performance was not enthusing, with net revenue declining 1%. International revenue fell 3% due to sluggishness in Latin America, Egypt and Bangladesh. Its EBITDA decreased 6% at Rs.36 crore and EBITDA margin was at 13.1% v/s 14.9% in Q2FY14. Its Latin America business declined 11% (QoQ) and down 15% (YoY) due to technical issues regarding core and VAS services in Brazil during the first half of Q3. The company has stated that since then the issues have been resolved and its monthly run rate is back to normal. Revenue in India declined 17% (YoY) but QoQ, rose 3%.