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D i s m a l t o p l i n e . . .
OnMobile Global reported its consolidated numbers which were below
our estimates. The company reported a topline of | 136.4 crore against
our expectation of | 144.8 crore, growing 2.3% QoQ and 10.2% YoY.
EBITDA for the quarter stood at | 27.0 crore against our expectation of |
32.7 crore, de growing by 12.1% QoQ and 4.9% YoY due to higher cost
of sales. EBITDA margin for the quarter stood at 19.8%, falling by 326
bps QoQ and 315 bps YoY. PAT stood at | 13.9 crore, de growing by
48.1% QoQ and 25.0% YoY.
ƒ Highlights for the quarter
OnMobile Global’s revenue stood at | 136.4 crore as against our
expectation of | 144.8 crore. EBITDA margins took a tumble in this
quarter and stood at 19.8% falling 326 bps QoQ on the back of a
higher cost of sales and services inclusive of content cost. Dilithium
also did not have any significant impact on the revenues. The
telephonica services went live in 7 countries covering 85% of the
total subscriber base of LatAm. The active user base has grown by
~50% from Q4FY11 to 4.6 million users in Q1FY12. The company
also completed the deployment of their sports pack ‘Futbol’ in all 12
countries ahead of the big event, COPA America in July.
V a l u a t i o n
The company’s reported a topline that was below our expectations and
even on the EBITDA margin front the company disappointed. Recent
TRAI guidelines regarding activation of VAS may be a dampener.
Execution in international businesses seems to be on track; however
slowdown in core business is a cause of concern for OnMobile. At the
CMP of | 71, the stock is trading at 10.8x FY13E EPS of | 6.6. Using the
DCF methodology, we value the stock at | 83, implying an upside
16.9%. Our target price discounts FY13E EPS by 12.7x. We maintain our
BUY rating on the stock
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
D i s m a l t o p l i n e . . .
OnMobile Global reported its consolidated numbers which were below
our estimates. The company reported a topline of | 136.4 crore against
our expectation of | 144.8 crore, growing 2.3% QoQ and 10.2% YoY.
EBITDA for the quarter stood at | 27.0 crore against our expectation of |
32.7 crore, de growing by 12.1% QoQ and 4.9% YoY due to higher cost
of sales. EBITDA margin for the quarter stood at 19.8%, falling by 326
bps QoQ and 315 bps YoY. PAT stood at | 13.9 crore, de growing by
48.1% QoQ and 25.0% YoY.
ƒ Highlights for the quarter
OnMobile Global’s revenue stood at | 136.4 crore as against our
expectation of | 144.8 crore. EBITDA margins took a tumble in this
quarter and stood at 19.8% falling 326 bps QoQ on the back of a
higher cost of sales and services inclusive of content cost. Dilithium
also did not have any significant impact on the revenues. The
telephonica services went live in 7 countries covering 85% of the
total subscriber base of LatAm. The active user base has grown by
~50% from Q4FY11 to 4.6 million users in Q1FY12. The company
also completed the deployment of their sports pack ‘Futbol’ in all 12
countries ahead of the big event, COPA America in July.
V a l u a t i o n
The company’s reported a topline that was below our expectations and
even on the EBITDA margin front the company disappointed. Recent
TRAI guidelines regarding activation of VAS may be a dampener.
Execution in international businesses seems to be on track; however
slowdown in core business is a cause of concern for OnMobile. At the
CMP of | 71, the stock is trading at 10.8x FY13E EPS of | 6.6. Using the
DCF methodology, we value the stock at | 83, implying an upside
16.9%. Our target price discounts FY13E EPS by 12.7x. We maintain our
BUY rating on the stock
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