The Next 50#86 OnMobile

OnMobile, the Bengaluru-based value-added services company, is ranked #86 this time, a good move as compared to last year's ranking of 95. Despite some challenges in the operator business, the company clocked an impressive 19% growth in revenue in FY2014. International revenues grew primarily led by Europe and LA regions, while domestic growth declined.

With TRAI mandating double confirmation for activation of VAS services across channels, there was some impact on the revenues. The company reported that there was also an adverse impact on earnings due to a one-time minimum guarantee payment of about `14 crore towards a contract in Europe.

The company also faced some headwinds with its Livewire (OLI) acquisition. OLI is expected to breakeven only in the second half of financial year 2016.

In 2014, RBT has been a focus area for OnMobile. Content VAS is another area that delivered good results.

OnMobile bagged some large RBT deals in the year, including MTN contract, said to be the largest RBT replacement project in the world. Another highlight was its decision of divesting from Voxmobili, a company it acquired in 2007, with the objective of focusing on core business.