OnMobile Reports Robust Third Quarter Of Fiscal Year 2023 Results

* Challenges Arena: The expansionary trend continued; revenue grew 21x since its launch and 62 cumulative customer agreements by Q3FY23

OnMobile Global Limited (“OnMobile”), the global leader in mobile entertainment, today announced the financial results for the Third quarter and Nine months FY23 ended December 31, 2022.

Highlights:

·           Challenges Arena: Revenue increased by almost 52% on a QoQ and ~7x on a YoY basis and grew ~21x over the last 7 quarters

·           Challenges Arena: 62 cumulative customer confirmations and 35 customers live as on Q3FY23

·           Challenges Arena: 13.64 Mn gross subscribers as on Q3FY23

·           Challenges Arena: By Q3FY23, the Net active base increased to 3.1 Mn from 1.98 Mn in September 2022

·           ONMO B2B: 18 customers confirmed and 4 customers live as on Q3FY23. Revenue grew 77% QoQ

·           Q3FY23 revenues at INR 1,369 Mn, flat QoQ. Gross profit stood at INR 706 Mn a growth of 3.4%. Gross margin improved by 170 basis points QoQ (~53.9% gross margin in Q3FY23)

·           9MFY23 revenues at INR 4,145 Mn, up by 0.8%; Gross profit stood at INR 2,101 Mn, a growth of 4.3% YoY basis. Gross margin improved by 150 basis points YoY (~52.9% gross margin in 9MFY23)

·           Q3FY23 PAT grew by 555% QoQ to INR 41 Mn from INR 6 Mn in Q2FY23

·           In Q3FY23 Marketing cost grew by 10.5% QoQ and 87.3% YoY primarily due to investments in new launches

Commenting on Q3FY23 results, Sanjay Baweja, CEO & MD, OnMobile, said, “Revenue was flat on a sequential basis. According to our strategy, we will continue to invest in marketing to increase our profitability in the long run. The worst is behind us, and CA and ONMO are gaining traction. We are well-positioned to achieve our goal of creating cutting-edge mobile gaming solutions thanks to our targeted execution and continued efforts to digitize our core B2B businesses.”

Asheesh Chatterjee, Global Group CFO, said, “EBITDA saw substantial growth from last quarter, lead by improvement in gross margins on account of revenue mix increasing in favor of CA which has higher margin. We are making good progress in both CA & ONMO and would see CA contributing to profitability and ONMO towards revenue growth in the coming quarters.”