OnMobile Reports Second Quarter Fiscal 2014 Results

Q2 FY2014 Net Revenue increased by 25.2% and EBITDA declined by 3.6% y-o-y

 BANGALORE, INDIA – October 29, 2013: OnMobile Global (“OnMobile”) today announced the results for the Second Quarter FY2014 ended September 30, 2013. Revenue for Q2 FY2014 was `2,250 million, an increase of 25.2% y-o-y and 18.6% q-o-q. This includes financials of OnMobile Live with effect from July 19, 2013.

Business Highlights

§  Successfully migrated RBT in another large operator in Spain. With this, OnMobile will reach over 90% mobile subscriber base in Spain

§  Launched RBT services with an operator in Qatar

§  Domestic revenues impacted by the TRAI Consent Gateway guidelines, released on July 11, 2013

§  Completed the acquisition of LiveWire Mobile (now OnMobile Live) and integration process under way

 Corporate Developments

§  OnMobile further strengthened its Board with two high-profile appointments

o   On October 8, 2013, the Company appointed Mr. Rentala Chandrashekhar, as an independent non-executive director. He was the Secretary, Department of Telecommunications for Government of India

o   On October 29, 2013, the Company appointed Ambassador (Ret.) Barry B. White. He is an eminent lawyer and a thought leader. In October 2009, he was appointed as the US Ambassador to the Kingdom of Norway/ Chief of Mission of the Embassy in Oslo

 Q2 FY2014 vs. Q2 FY2013: Y-o-Y Highlights

 Including LiveWire

§  Net Revenue of `2,250 million, up 25.2% as compared to Q2 FY2013, despite a 31.8% decline in domestic revenues

§  International businesses increased by 65.1% to `1,745 million and contributed 78% of the Net Revenue in Q2 FY2014 (vs. 59% in Q2 FY2013)

• o International revenue was primarily driven by North America (upon consolidation of LiveWire) and Europe
• § Domestic revenue declined 31.8% to `506 million as a result of the implementation of TRAI Consent Gateway guidelines
• § EBITDA declined by 3.6% to `335 million on account of loss of `24 million of LiveWire
• § Net Profit declined from `62 million to  `15 million on account of net loss of `85 million of LiveWire
• § Earnings per share was `0.13 as against `0.55 in Q2 FY2013

Excluding LiveWire

§  Net Revenue of `2,069 million, up 15.1% as compared to Q2 FY2013

§  International businesses increased by 47.9% to `1,563 million and contributed 76% of the Net Revenue in Q2 FY2014 (vs. 59% in Q2 FY2013)

• o International revenue was primarily driven by Europe and Africa
• § EBITDA increased by 3.3% to `359 million
• Adjusted for one-time expenses, EBITDA increased by 12.5%
  • § Net Profit increased by 60.9% to  `100 million
  • § Earnings per share was `0.86 as against `0.55 in Q2 FY2013

Q2 FY2014 vs. Q1 FY2014: Q-o-Q Highlights

Including LiveWire

§  Net Revenue increased by 18.6% to `2,250 million

o   International revenues continued to grow and increased 39.3% as compared to Q1 FY2014

o    India revenues declined by 21.5% over previous quarter

• § EBITDA decreased by 19.9% to `335 million
• § Net Profit declined from `141 million to `15 million on account of net loss of `85 million of LiveWire
• § Earnings per share was `0.13 as against `1.23 in Q1 FY2014

Excluding LiveWire

§  Net Revenue increased by 9.1% to `2,069 million despite a 21.5% decline in domestic revenues

o    International revenues continued to grow and increased 24.8% as compared to Q1 FY2014

• § EBITDA decreased by 14.3% to `359 million primarily on account of change in revenue mix and one-time content reversals in Q1 FY2014
• § Net Profit declined from `141 million to `100 million
• § Earnings per share was `0.86 as against `1.23 in Q1 FY2014

H1 FY2014 vs. H1 FY2013: Y-o-Y Highlights

Including LiveWire

§  Net Revenue increased by 13.6% to `4,147 million

o   International revenues continued to grow and increased 42.6% as compared to H1 FY2013 and contributed 72% of the Net Revenue in H1 FY2014 (vs. 58% in H1 FY2013)

o    India revenues declined by 25.7% over H1 FY2013

• § EBITDA increased by 6.8% to `754 million
• § Net Profit declined marginally from `157 million to `156 million
• § Earnings per share was `1.36 as against `1.38 in H1 FY2013

Excluding LiveWire

§  Net Revenue increased by 8.6% to `3,966 million despite a 25.7% decline in domestic revenues

o    International revenues continued to grow and increased 33.9% as compared to H1 FY2013

• § EBITDA increased by 10.1% to `778 million
• § Net Profit increased by 51.9% to `241 million
• § Earnings per share was `2.09 as against `1.38 in H1 FY2013