Wednesday, July 23, 2008

OnMobile Global


OnMobile is India’s largest white labeled VAS company for Mobile, Landline and Media Service Providers. They offer telecom Value Added Services (VAS), Voice portals, RingBack Tones, mobile content aggregation & distribution, interactive media portals, mobile advertising, 1-to-1 direct marketing on mobiles and M-Commerce.

The current suite of VAS offered includes:
  1. RingBack Tones – live with over 27 million active users; integrated with Nokia, Siemens, Ericsson, & Huawei MSCs. Provisioning via SMS, IVR, WAP and Web.
  2. Voice Portal & WAP – RingTones, Music Jukebox, Sports, Jokes, Horoscopes (incl. live astrologer), Contests, Radio FM-on-mobile, Musicards, karaoke, Contests, M-Radio, etc.
  3. On-Device Portal & handset client with phone backup, for Nokia, Star, Planet Hutch & Yahoo. Deployed with Vodafone, Orange, France Telecom, T-mobile, Telstra, Vimpelcom, Turkcell
  4. Mobile Marketing and Corporate – Email, Corporate mobile portals, Vertical market solutions, Mobile m-advertising & promotions
  5. M-Commerce – ticketing, lead generation, direct marketing, m-coupons
  6. Media Portals & Interactive TV programming – Star, Sony Idol, ESPN, MTV, Yahoo, V Channel
  7. In-Call Network Solutions – Missed call Alert, Dynamic VoiceMail, Sponsored Call, Voice SMS
  8. Core Business Support – prepaid topup, bill payment, auto dialer
  9. 3G applications and VAS – location based, music and video streaming
ShareHolding Pattern:

Foreign Holdings - 20.11
Govt. / Financial Institutions - 3.61
Corporate Bodies(not covered above) - 4.82
Directors and their Relatives - 57.23
Other including Indian Public - 14.23

Valuations:

The domestic wireless subscriber base is likely to go up to 500 mn by 2010 from current 270 mn, thus implying a CAGR of 38.6% over FY08-10E. Since the business of the company is directly correlated to the wireless subscriber growth numbers, the above growth rate for the industry would prove to be a key catalyst for the future growth of the company. The company has been able to grow its Revenue & PAT by CAGR of 85.6% & 62.6% respectively over a period of FY05-08. Even though the absolute growth rate may be lower than the historical growth rate, it is likely to remain strong going ahead. At the CMP of Rs.536, the stock is trading at a 48.8 x its FY08 EPS of Rs.10.5 and M.Cap/ Sales of 11.2. The stock may continue to attract premium valuation due to its strong revenue & profit growth.

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