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OnMobile Global Ltd. Investor Presentation 2021
62296_rns_2021-08-08_8df8e97b-4b8b-4fd8-9189-57de289bd8a9.pdf
Investor Presentation
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ONMOBILE GLOBAL LIMITED Tower #1, 94/1 C & 94/2, Veerasandra Village, Attibele Hobli, Anekal Taluk, Electronic City Phase-1, Bangalore - 560100, Karnataka, India P: +91 80 4009 6000 | F: +91 80 4009 6009 CIN - L64202KA2000PLC027860 Email - [email protected] www.onmobile.com
August 08, 2021
To Department of Corporate Services, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 Scrip Code: 532944
The Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai - 400 051 Scrip Code: ONMOBILE
Dear Sir/Madam,
Sub: Investor Presentation- Q1 FY 2021-22
In furtherance to our intimation dated August 06, 2021 please find enclosed the revised Investor presentation for Q1 FY 22, which will be presented by the Company at the Earnings Call scheduled to be held on August 09, 2021 at 4.30 PM (IST). We regret any inconvenience caused to the Exchanges' in this regard.
Kindly broadcast the same on your website.
Request you to kindly take the same on record.
Yours sincerely, For OnMobile Global Limited
P V Varaprasad Company Secretary
Encl: a/a
Investor Presentation
August 9th, 2021
Agenda
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- Company & Products
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- Financials
Cautionary statement
This presentation may contain statements that contain "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to OnMobile Global Limited's (OnMobile Global or the Company) future business developments and economic performance.
While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.
OnMobile Global undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.
Company & Products
OnMobile has global presence and scale in mobile entertainment
Provides end-to-end mobile entertainment solutions that include platform, apps, content partnerships, value-added services and professional services to telecom carriers across the globe
monthly users Videos & Editorials 7 Million
We are executing against our strategic pillars
Existing core B2B Products
TONES VIDEOS & EDITORIAL CONTESTS
The global mobile gaming market is large & growing
Key trends impacting growth of mobile gaming
Social driving engagement
Mobile gamers 2X more likely to stay in game for social connections
Short gaming moments
10B hyper casual installs in 2020 350M play snackable FB games 140M Indian play sessions < 11 min
New Technologies
AI, AR, VR will continue to fuel innovative ways to combine gameplay and social interaction
OnMobile's gaming products leverage these technologies & trends
| Content | •1000s of Quiz & Puzzles•Multiple languages | •Short, best game moments•1000s of challenges | ||||
|---|---|---|---|---|---|---|
| Technology | •Downloadable apk•Progressive Web App | •Vision AI (Artificial Intelligence)•Cloud streaming on PWA | ||||
| Distribution | •Telcos& OTTs globally | •Telcosglobally•Direct to Consumer | ||||
| Monetization | •Subscription•Ads | •Real Money battles•Subscription | ||||
| We are investing in an industry projected to grow rapidly |
Challenges Arena is seeing great traction since Q1 2022 launch
490k 505k 6 12 20 2 7 15 Q1 Q2 est Q3 est Customer Signup (cumulative) Customer Live (cumulative) Customer signup & live 490000 510000 600000 490000 1000000 1600000 Q1 Q2 est. Q3 est. Gross Subscriber additions Gross Subscriber cumulative Gross subscribers
On track for 25 customer signups and 20 live customers by Q4 FY22
Massive subscriber penetration opportunity across several global telecom operators
We continue to enhance Challenges Arena and make it a compelling experience
Quiz challenges across categories
Added thousands of questions and in more languages
Feedback from Telcos
Challengers Arena is a cutting-edge product. There are many features we liked especially gamified experience. $50Bn global telco
We tried Challenges Arena and the consumer experience was really good $14B regional telco
We launched ONMO beta built on key emerging trends & technologies
It is the world's first challenge creation AI / Artificial Intelligence engine
ONMO has made terrific progress on product & partnerships – telco launch in Q3
PRODUCT: 50+ games & 2500+ challenges on platform. Built AI engine and cloud technology
TELCO PARTNERSHIPS: advanced conversations with 15 telcos & sign-up stage with 3 telcos across Europe, Asia & Middle East
Feedback: Strong interest to launch ONMO due to differentiated features & futuristic technology
ONMO has a unique positioning focused on cloud gaming, short competitions and sharing: $50Bn global telco
Moments, short gaming feature and share controls which you are building are unique for mobile casual games. These are differentiators compared to other cloud gaming services: $15Bn European telco
Investment Rationale
Stability and dominance in current products
- Global Reach
- Dominating market share in Tones business
Investing in transformational mobile gaming sector Financials
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Investment, focus & execution on mobile gaming with world-class global team
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Huge opportunity globally
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Emerging turnaround story
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Solid cash position
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Healthy cash flow from operations
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Debt free
Key Management
François-Charles Sirois EXECUTIVE CHAIRMAN
François-Charles Sirois is currently President & CEO of Telesystem, a family-owned media & technology holding, Executive Chairman of OnMobile Global, and Chairman of Zone 3, one of Canada's largest creator and producer of content.
François-Charles Sirois is also cofounder of Stingray Digital Group and has more than 20 years of experience in corporate mergers, acquisitions & venture capital.
Before joining Telesystem, Mr. Sirois started his career building start-up companies in e-commerce and mobile payment services.
Krish Seshadri
CHIEF EXECUTIVE OFFICER
Krish joined OnMobile in August 2020 as CEO. He has two decades experience in mobile, consumer internet and gaming across US, Europe, APAC & Middle East
Most recently, he was CEO of Monster.com's APAC and Middle East operations.
Previously, he held leadership roles at social gaming pioneer Zynga, Facebook & digital content leader AOL-Verizon.
He has an engineering degree from Stanford University and MBA from London Business School
Sanjay Baweja
GLOBAL GROUP CFO
Sanjay was Independent Director on OnMobile's Board from September 2015. In May 2020, Board appointed him as Global Group CFO of OnMobile.
Sanjay has extensive experience in strategy, finance and Investor relations across sectors.
Previously, he was Group President at Bhartiya group, Group CFO at Suzlon, Flipkart and Tata Communications.
Sanjay is a Chartered Accountant and Cost and Work Accountant.
Financials
Financial Highlights
- Revenue remains stable QoQ.
- Our cost rationalization efforts are continuing and have yielded savings with a reduction of 11.8% QoQ and 11.6% YoY in manpower costs.
- Other Opex cost declined by 22.3% YoY; however the last quarter numbers were lower due to one time reversal of accumulated lease rentals on account of giving up of rented space.
- EBITDA at INR 145 Mn continues to remain in double digits with a margin of 11.3% for the quarter
- Operating Profits of INR 119 Mn;9.2%.
- PBT grew by 12.5% QoQ and 16.3% YoY to INR 224 Mn including an exceptional gain of INR 73 Mn this quarter.
- PAT grew by 9.8% QoQ and 35.8% YoY to INR 164 Mn.
- DSO improved to 122 days in Q1FY22 vs 137 days in Q1FY21.
P&L Q1 FY22
| P&L (INR Mn) | Q1 FY22 | Q4 FY21 | QoQ Gr % | Q1 FY21 | YoY Gr % |
|---|---|---|---|---|---|
| Revenue | 1,351 | 1,370 | (1.4%) | 1,469 | (8.0%) |
| *COGS & UFF | 711 | 710 | 0.1% | 731 | (2.8%) |
| Gross Profit | 640 | 660 | (2.9%) | 738 | (13.2%) |
| Margin(%) | 497% | 505% | 524% | ||
| Manpower Cost | 300 | 340 | (11.8%) | 339 | (11.6%) |
| Marketing Cost | 80 | 61 | 30.3% | 52 | 52.7% |
| Other Opex | 115 | 104 | 10.4% | 148 | (22.3%) |
| EBITDA | 145 | 154 | (5.6%) | 198 | (26.5%) |
| (%)Margin | 113% | 118% | 140% | ||
| Depreciation | 26 | 28 | (7.0%) | 34 | (21.6%) |
| Operating Profit | 119 | 125 | (5.3%) | 164 | (27.5%) |
| Margin(%) | 92% | 96% | 116% | ||
| Profit After Tax | 164 | 149 | 9.8% | 121 | 35.8% |
| (%)Margin | 127% | 114% | 86% | ||
| EPS (Diluted) | 1.54 | 1.42 | 8.5% | 1.16 | 32.8% |
| Cash Profit | 115 | 116 | (0.7%) | 155 | (25.5%) |
*COGS & UFF refers to Content Cost, Contest / Gratification Cost and Customer Acquisition Cost
Financial Summary Q1 FY22 Actual
| Gross Revenue | Manpower cost | Opex | EBITDA | ||
|---|---|---|---|---|---|
| INR 1,351 Mn8.0% YoY1.4% QoQ | INR 300 Mn11.6% YoY11.8% QoQ | INR 115 Mn22.3% YoY10.4% QoQ | INR 145 Mn26.5% YoY5.6% QoQEBITDA Margin 11.3% | ||
| Operating Profit | PAT | Cash Profit | DSO | ||
| INR 119 Mn27.5% YoY5.3% QoQOp. Profit Margin 9.2% | INR 164 Mn9.8% YoY35.8% QoQPAT Margin 12.7% | INR 115 Mn25.5% YoY0.7% QoQ | 122 Days15 Days YoY6 Days QoQ |
Revenue by Geography
Note: Americas include – Latin America and North America
Revenue by Products
Cash Position
Ratio Analysis
| Ratio Analysis | Q1 FY20 | Q2 FY20 | Q3 FY20 | Q4 FY20 | Q1 FY21 | Q2 FY21 | Q3 FY21 | Q4 FY21 | Q1 FY22 |
|---|---|---|---|---|---|---|---|---|---|
| Profit and Loss | |||||||||
| International revenue / revenue | 84% | 85% | 84% | 84% | 86% | 86% | 85% | 85% | 86% |
| Gross profit / revenue | 56% | 55% | 55% | 51% | 52% | 52% | 51% | 50% | 50% |
| Revenue per Employee (INR'000) | 1,838 | 2,022 | 2,120 | 2,161 | 2,107 | 2,076 | 2,084 | 1,984 | 2,005 |
| EBITDA per Employee (INR'000) | 51 | 146 | 158 | 171 | 284 | 221 | 253 | 229 | 216 |
| Aggregate employee costs / revenue | 31% | 29% | 28% | 25% | 24% | 26% | 25% | 26% | 23% |
| Operating profit / revenue | 0% | 4% | 5% | 6% | 12% | 9% | 10% | 10% | 9% |
| Profit before tax (PBT) / revenue* | 2% | 5% | 7% | 10% | 14% | 8% | 12% | 11% | 12% |
| Balance sheet | |||||||||
| Current ratio | 1.85 | 1.84 | 1.79 | 2.12 | 2.14 | 2.10 | 2.24 | 2.03 | 2.05 |
| Day's sales outstanding (Days) | 143 | 155 | 140 | 144 | 137 | 140 | 120 | 116 | 122 |
| Liquid assets / total assets (%) | 55% | 53% | 55% | 58% | 57% | 53% | 53% | 51% | 48% |
| Liquid assets / total sales ratio | 3.5 | 3.4 | 3.4 | 3.5 | 3.6 | 3.3 | 3.3 | 3.5 | 3.4 |
*PBT before Exceptional Gains
Balance Sheet
| INR Mn | Jun'21 | Mar'21 |
|---|---|---|
| Shareholders' Funds | 6,450 | 6,261 |
| Non-Current Liabilities | 197 | 198 |
| Trade Payables | 1,812 | 1,862 |
| Current Liabilities | 568 | 675 |
| Total Liabilities | 9,027 | 8,996 |
| Fixed Assets | 549 | 520 |
| Goodwill | 621 | 596 |
| Right to use Assets | 72 | 77 |
| Investments in Associates | 369 | 56 |
| Financial Assets | 21 | 54 |
| Deferred Tax Assets | 568 | 570 |
| Non-Current Assets | 1,950 | 1,966 |
| Cash and Cash Equivalents | 2,272 | 2,662 |
| Trade Receivables | 2,052 | 1,970 |
| Other Current Assets | 553 | 525 |
| Fixed Assets | 549 | 520 |
| Total Assets | 9,027 | 8,996 |
For any queries mail us at [email protected]
