OnMobile Global Limited (OnMobile), the global leader in mobile entertainment, today announced its financial results for the Fourth Quarter and Full year FY23 ended March 31, 2023.
Challenges Arena, OnMobile’s gaming platform, continued to grow rapidly, with revenue increasing by 178% on a YoY basis and growing 22x over the last 8 quarters. Challenges Arena has a strong customer base, with 17.56 Mn gross subscribers and 3.1 Mn net active users.
ONMO B2B, OnMobile’s business-to-business platform, also grew rapidly, with revenue increasing by 2x QoQ. ONMO B2B has 19 customers confirmed (4 live).
Overall, OnMobile’s revenues increased by 0.9% and gross profit increased by 10.9% YoY. The company is focused on scaling up its new products, which will drive revenue growth in the current year. The company is also focused on digitizing its core B2B business, which will improve profitability and efficiency.
Here are the highlights from the financial results:
- Challenges Arena revenue increased by 178% on a YoY basis and grew 22x over the last 8 quarters.
- Challenges Arena has 66 cumulative customer confirmations and 42 customers live as on Q4FY23.
- Challenges Arena has 17.56 Mn gross subscribers as of Q4FY23.
- Challenges Arena’s net active base remained stable at 3.1 Mn at the end of Q4FY23.
- ONMO B2B has 19 Customers confirmed (4 live). Revenue grew 2x QoQ.
- FY23 revenues at INR 5,490 Mn, up by 0.9%; Gross profit at INR 2,780 Mn, a growth of 6.3% YoY basis.
- Q4FY23 revenues at INR 1,345 Mn, up by 1.0%; Gross profit stood at INR 702 Mn, a growth of 10.9% YoY basis.
- In Q4FY23, Marketing costs grew by 8.5% QoQ and 45.3% YoY, primarily due to investments in new launches.
- In Q4FY23, Manpower cost decreased by 3.7% QoQ.
Commenting on Q4FY23 results, Sanjay Baweja, CEO & MD, OnMobile, said, “We recognize that this has not been a good quarter for us; having said that, we have optimized our resources and are scaling up our new products, which will reflect in good revenue growth in the current year with much higher profitability. We have launched our first-ever SaaS-based gamification platform, ‘Gamize,’ to diversify our portfolio. Our focused execution and ongoing efforts to digitize our core B2B business position us well to achieve the goal of developing cutting-edge mobile solutions.”
Asheesh Chatterjee, Global Group CFO, said, “Our Q4 FY23 revenues are up by 1%, and gross profit is up by 10.9% on a year-on-year basis. Overall profitability declined due to one-time severance costs, which will contribute to higher profitability and efficiency in the coming months. The gaming vertical constitutes 12% of FY23 gross revenues. CA and ONMO are going as per plan and we are poised for further growth in the upcoming quarters.”
Here are some key takeaways from the financial results:
- Challenges Arena is the company’s fastest-growing business unit, with revenue growth of 22x over the last 8 quarters.
- Challenges Arena has a strong customer base, with 17.56 Mn gross subscribers and 3.1 Mn net active users.
- ONMO B2B is also growing rapidly, with revenue growth of 2x QoQ.
- The company’s revenues are up by 0.9%, and gross profit is up by 10.9% YoY.
- The company is focused on scaling up its new products, which will drive revenue growth in the current year.
- The company is also focused on digitizing its core B2B business, which will improve profitability and efficiency.
Overall, the financial results are positive and show that the company is on track to achieve its goals. The company’s focus on new products and digitizing its core business will drive revenue growth and profitability in the coming quarters.