Onmobile Global Ltd (NSE: ONMOBILE) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Unidentified Speaker
Francois-Charles Sirois — Executive Chairman of the Board
Bikram Sherawat — President and Chief Operating Officer
Radhika Venugopal — Global Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
operator
This meeting is being recorded. Good evening and welcome to the Q3FY26 earnings call of OnMobile Global Limited. Representing the management today we have FC Executive Chairman and CEO Radhika Venugopal, full time director and CFO Vikram Cherawat, President and coo. The call will start with brief update about the overall performance during the quarter by fc. Radhika will update on financials and then Vikram will share his insights on operations. After that we’ll open the floor for Q and A session. I would like to remind you that some of the statements made in today’s call may be forward looking in nature and may involve risks and uncertainties that we see.
For such lists and considerations please refer to the earnings presentation on mobile. Global undertakes no obligation to publicly revise any forward looking statement to reflect future or likely events or circumstances. Having said that, I now hand over the floor to Mr. FC. Over to you FC.
Francois-Charles Sirois — Executive Chairman of the Board
Thank you. Thank you all for joining this Q3 call. Let me start by welcoming on our board of director Mao Mo Patra. Longtime veteran of the industry knows inside out how it operates. You know he was CEO of Comviva, a tech manager company which operates in the same field as on Mobile for 18 years plus. So I’m really happy accepted to join the board is going to help us a lot on how he sees both operations and sales. So MAU, welcome on board. Now let me talk about the quarter. Good quarters. On gaming as you can see the growth, it’s above our target normally as we always do, it’s between 10, 15, sometimes 20% now it’s a bit above Bikram.
We’ll talk about this. You saw where we’re heading. We finally were closing into our first objective of getting towards the 2 million a month in the coming quarters. You know our view was okay, it’s not going to stop there right? This is, this business is growing as we know gaming is growing and our subscription business is growing. So I view you know a stable 1015 quarter on quarter. You know it might have some up like we have this quarter, some down but the reality on a yearly basis that’s what I see still going forward. Mobile entertainment, you know we had some growth on some products, we had some degrowth on some other products.
The one time license also is a bit lower this quarter than the others. So that’s why there’s a bit of a, of a gap. If we would have maintained the same one time that we had in Q2 and Q3 that would have given us a big lift. We’re hoping that this fourth quarter we do sign additional licenses which will balance out this, this side of the business. I’m just going to talk two minutes on something we didn’t talk about, which we did talk in last quarter is the gaming console. I know there’s a lot of questions about it.
I’m going to address them now just to let you know that the team has been working very, very hard on the go to market strategy. We will announce something clear as we launch. So that’s why it’s not been launched as we know in Q3 and this is why it’s not part of this deck now. It doesn’t mean nothing is happening. A lot is happening. A lot of details on the detailed strategy for the go to market. Keep in mind also it’s a bit different as a console, right? Different than the operation we used to do.
Meaning that we need to design our own controller so the design is ready for production. The gaming controller, the box because we’re selling boxes now. The games are different, right? It’s not really mobile gaming, it’s console gaming. So you need console games, servers, servers are different. We need very, very advanced servers and deployment. So all this makes it a more complicated launch than what we do just on the software side normally. So this is why it takes more time. But you know that was, you know, if you remember, right, a quarterback. I said, you know, we need two quarters to do an announcement.
So this is why it’s not part of this deck. But you know we’re really working out and you know, team is really working hard on this. The service looks very good. Getting some real good gamers testing the service and giving us fantastic feedback. So in the coming months you should have more news on it to this I’m going to let Bikram gives us, you know, give us the, the detail on the operation and then Radika Bikram.
Bikram Sherawat — President and Chief Operating Officer
Thank you fc. Good afternoon everybody. Like by saying Happy New Year to everybody we are in February Q3 we continue to deliver our momentum. We spoke about in Q1 and Q2 we delivered across all our key lines of business. EPS already mentioned about gaming. Our overall revenue grew by 4.5% quarter on quarter to 1369 million rupees. It was driven mainly by gaming and our steady performance in our mobile entertainment business which is key to our business as well. Gaming accounts for overall of our third of our revenues. Right and it can, it cements its place as the growth pillar for the organization.
Our gaming subscriber base at the end of Q3 was 13.7 million. Onmo, our social gaming service continued to grow quarter on quarter. The higher revenue in quarter three was because of the seasonal effects of festivals. With festivals, many countries in the markets we operates in Africa, etc. In other parts of the world, people get more recharges because the salary is given twice and what we got more revenue per subscribers and resultant transactions were higher. In addition to that, as we look forward to the new financial year as well and the remaining part of this financial year, we are in conversations with six, seven new customers with whom we would want to close deals and launch thereafter soon are giving subscription business so we are bullish about it.
In December we launched our gaming platform with a major client in Africa. If you remember, two quarters back we announced a new product around gaming the gaming platform which is on a fixed fee and license. This is the first launch of the gaming platform which we did in Q3 and we are in conversation with few other customers which we plan to close in this quarter. We have closed new gaming deals for ONMO in South Asian countries and Middle east which are going to see the light of the day in the coming new months. Regarding mobile entertainment, it remains stable and profitable business for us in operators they are bringing additional revenue through deeper customer engagement.
So what we have done is during the seasonal period, festival periods, lots of launch specific marketing campaigns which are topical around content and music for tones business and as we have consistently maintained this segment provides the strong cash foundation we need to scale up our gaming and new lines of business. Our operational focus for the mobile entertainment is on protecting margin renewing long term customer relationships. So a dedicated focus is to ensure our contracts are renewed before time and selectively expanding wherever we see clear returns right? Our BASMO product line Enterprise solution product we have entered late stage commercial discussions with three prospective industry leaders.
We plan to foray into couple of BFSI customers as well in Africa so we are trending towards expansion which we would see in the next financial year for basmo Geographically if you see the regional performance of on mobile right? Our best performing regions in quarter three have been Middle East, Asia and Latin America. These regions we have deepened our relationship with the telcos and increasing the acceptance of our gaming proposition and what we want to do as we go forward is broadband this and take it to the other regions beyond the already strong regions I’ve already mentioned about right? Overall before I conclude our ambition remains centered around gaming recurring revenue growth we’ve achieved around $1.6 million in December.
We continue to focus and grow this Significantly, we have already stated the numbers we want to reach to. Looking ahead, we grow our gaming subscription business, expand our footprint on license deals and fixed fee deals as FC has spoken about and at the same time we stay disciplined on profitability, leverage our engagements for licensing revenue and ensure our mobile entertainment business remains profitable and continues to grow. Thank you. I will now hand it over to Radhika who will give us a detail about all our numbers.
Radhika Venugopal — Global Chief Financial Officer
Thank you, Vikram. Good evening everyone and thank you all for joining us. Moving on to the financial performance in quarter three FY26 revenue was 137 crores which was up by 4 and a half percent quarter on quarter. EBITDA stood at 8.1 crores which is a 16% growth quarter on quarter as compared to the previous quarter. If I see it on a normalized basis, this is excluding the capitalization of intangibles. Gaming growth trajectory remains intact. Our gaming subscription revenue was 44.6 crores. This is up from last quarter and this is up by 29.6% last quarter. Gaming subscription monthly run rate now touched 1.6 million USD in December.
Within mobile entertainment revenue stood at 91.6 crores. There was a slight decline of 4% quarter on quarter. Our operational efficiency continues to improve. People cost was at 27.8 crores. This was flat on a quarterly basis and down from last year by 5.4%. Marketing was at 25.2 crores which is higher by 8.8% on a quarterly basis and 4.4% on a year on year basis. This is in line with our growth in gaming revenues. Other opex was at 10 crores this quarter. This is a reduction of 10% from last quarter. Our DSO stood at 123 days. This was slightly higher due to the festival and vacation season because of which the collections were delayed which will be collected in quarter four this quarter we have booked one time exceptional cost of 4.6 million.
And this is pertaining to grativity expenses which is accruing from the new labor code rules. We closed the quarter with a gross cash of 138.5 crores and our path stood at 3.5 crores. Thank you.
Questions and Answers:
operator
Thank you. Radhika, Bikram and FC participants. Those who want to ask the question, they can raise their hands and ask the question. So we have the first question from Revant.
Unidentified Participant
Hi sir. Am I audible?
Bikram Sherawat
Yes, you’re audible. Yeah, you can go ahead and thank.
Unidentified Participant
You sir for the opportunity. Sir, I see the gaming subscriber base at 13.7 million in Q2 and Q3 presentation. Is it the same that gaming subscriber base still remain the same or it’s. Is it some typo error in the presentation?
Bikram Sherawat
So basically no. So the way it is, what we show as a gaming subscriber base is the average at the end of the quarter. What is the subscriber base at the end of the quarter? In quarter three, what we witnessed is that we had a peak in end of September and we picked up. And because of the festival season and the transactions which we were able to do throughout the subscriber base, we had a a peak of around 4,500more thousand subscribers than 13.7 million which tapered down to 13.7 at the end of the quarter. So it’s not a typo because of more chargeability, more transactions and people balance Being more in quarter three, which we have seen as a seasonality, is where we saw the revenue increase in the quarter.
Unidentified Participant
That means with the same subscriber base we could increase our monthly revenue of 1.6 million. Is my understanding right?
Bikram Sherawat
The market revenue mix changed for us. Whatever the market revenue mix was on quarter two versus quarter three, there was a difference and that’s how we were able to get the.
Unidentified Participant
Okay, tunhank you. My next question would be on marketing cost. I see a 10 crore increase in marketing cost. The same like quarter on quarter like September versus December with the same. No, not much change in the revenue. Can you throw some light on the increase in marketing cost by such an extent?
Bikram Sherawat
You want to take that?
Radhika Venugopal
Yeah, I’ll take this. So marketing cost has increased and that is in line with revenue. So the revenue mix there is. If you see 131 crores to 136 crores of increase in revenue, marketing cost has increased from 23 crores to 25 crores. There is an. There is almost a 9% increase in marketing and this is in line with increase in gaming subscription revenue. So gaming subscription revenue has increased by 29.6% quarter on quarter and this has led to increase in marketing as a percentage of revenues. The marketing has come down as a percentage of game subscription revenues.
This has come down.
Unidentified Participant
If I understand differently, previous when compared 2020, 24 December with 25. Sorry, September 24th or September December 24th. Like we have increased our subscriber base drastically but the marketing cost did not increase to such an extent. But just for a quarter we have increased by like almost 100 million. Is it due to that we are incurring more cost to acquire a customer? Is it difficult. Is it like is it becoming difficult for us to gain more customers? For that reason we are spending on more on marketing.
Radhika Venugopal
No, it is not because of difficulty in acquiring customer as Vikram mentioned, this is also. This also depends on the. It varies from market to market. Certain new markets when we enter we’ll have to spend higher on marketing and the initial acquisition cost on subscribers will be higher. So that’s the reason you might see some fluctuation in marketing quarter on quarter. If there. If it is a mature market, the marketing cost tapers down and comes down. But in new markets as we enter then we love to pump up marketing initially to acquire the subscribers or customers.
Unidentified Participant
Like is it possible to give the new market that you have entered this quarter?
Radhika Venugopal
So there has been increase in multiple markets and multiple geographies. Bikram, can you take up this question please?
Bikram Sherawat
Yeah. So basically currently we are live with around 67 telcos out of which we continue to see where all the marketing is most efficient. And the marketing which we do across the globe in our telcos, the spread shifts based on the response which we get on the customers. We don’t publish the markets we are currently live. But what we I can tell you is that we are right now as we speak in new sales discussion we are Talking to around 6, 7 telcos across markets in the quarter 3 we had expansion in Southeast Asia, we had expansion in Middle east, we had expansion in operators in Latin America.
Unidentified Participant
Thank you. That answers my question. And coming to the next question on other income till 2024, like 2425 financial year we we won’t see much in much income as a part of other income. But starting from FY26 we could see a monthly run rate of 100 like almost 100 million. Is it something relating to the cash reserve that we have in our balance sheet or is it due to some investments that we are getting this income, no other income.
Radhika Venugopal
What you’re seeing in the P L is mainly pertaining to the interest on income tax refunds which we received. So those are as compared to last year. This year we have high amounts of interest on income tax as compared to last year. In fact we got higher in income tax refunds and that is contributor to higher interest, higher other income which you’re seeing in the lines.
Unidentified Participant
And that means this would be one off for this year.
Radhika Venugopal
Yeah, most of it we have received but there are some more in the pipeline. So interest on income tax refund we will not be able to forecast but most of it is done as of now.
Unidentified Participant
Okay. And coming to my next question on guidance for FY26 guidance, it was provided as almost close to double digit on Gaming and 20% on 20 EBITDA. I’m talking about EBITDA margins of close to double digit for gaming for 26 and 20 FY27 20 EBITDA margin guidance is given are like are we on track on this guidance or any change that we are planning to make on this guidance?
Francois-Charles Sirois
Well, two things. You know, if you’ve seen the deck here in FY26, right, we finished this quarter, we’re in right now in the fourth quarter, right, Finishing. We had said that gaming would grow to about 50 growth, right. So we’re very close to that in the range right now. And that’s, I mean that still remains, right. We have one quarter to go. So the, the math is there for the year 26, right. Which is FY27. So it’s starting in April. Yes, I mean, you know, the profitability of gaming is starting to really compound right now that we have basically a run rate of 20, 25 million going to 30 million plus right.
During the year starting in April. Now the profitability is on gaming. So although we did, you know, and keep in mind this quarter there’s no capex know every single quarter that you have for the last five years we had CapEx every quarter, you know, this quarter is the first quarter that these results have zero CapEx. Because even in Q2 there was some a bit of CapEx. So all the investments that we do and we do investment, right, Is it cost money to do the the gaming console. It costed money to do the the gaming platform which we invested last year.
Now we capitalize a bit on the gaming platform. But as for the console, all the cost of the actual development of the virtual console is in our results, right? So that change also that will change in the mix as we launch the gaming console and start making money on the console, it will have an impact on our cash flow. Meaning that we need to finance the controllers and servers will get financing. But the controllers, the shipment and by the time we get paid back, this will have an impact on the cash flow. But all the actual OPEX to operate and develop the console now is going to turn into operation mode of, of making money on it.
So yeah, I mean it’s the same guidance that we’ve mentioned, you know, in the past that for the year 2627 starting in April, the gaming will be.
Unidentified Participant
Profitable as of now. Is it EBITDA positive or are we still in losses on gaming division as.
Francois-Charles Sirois
Of now, Q3, we’re. The contributing margin is positive. It all depends on what do we put into, you know, other than the contribution margin right now on gaming is positive, inclusive of the cost to invest to do the gaming console.
Unidentified Participant
Okay. And previously in a previous concourse like two, two quarters back, phone calls, there was some discussion on DSHORE partnership. Are we going with the Diesel partnership? Because we have invested almost like 15 million to acquire some chips and other things. Can you throw some light here?
Francois-Charles Sirois
Sorry.
Unidentified Participant
Wish dshore partnership Diosphere or D. Oh, sorry, Diosphere.
Francois-Charles Sirois
Yes. Yeah, Geosphere right now is on the ice, right? We, I mean, we, as I mentioned last quarters, right. I mean it said the relationship was not going good and that’s why we stopped booking, you know, any revenues. And, and right now it’s really on the ice. So I’m not positive on it. So I’m not counting on anything with.
Unidentified Participant
The Esther, like any, any positive news that we can hear in 27, FY27 or will it be still more time?
Francois-Charles Sirois
Anything will move with DSphere in 2027.
Unidentified Participant
And anything. Yeah, anything positive that we can hear in 27, I cannot comment on it.
Francois-Charles Sirois
But honestly, I don’t, I don’t see it.
Unidentified Participant
Okay, also, any track, any tentative deadline of on the gaming console that you’re planning to launch in the market?
Francois-Charles Sirois
Yeah, yeah, we’re working right now, you know, very hard to get this up and ready in the next quarter. So within the next quarter you’ll see we’ll do a formal press release as we launch, obviously. But yeah, that’s, that’s the goal.
Unidentified Participant
Also, fc, when you’re saying gaming console, is it like Xbox or a PlayStation or is it something different? Because I didn’t hear anything about this, so I thought of asking you. Sorry for ignorance.
Francois-Charles Sirois
No, no, no, it’s, it’s, you know, it’s a box and controller, okay. And, and basically the key, you know, is you buy the box and you know, instead of having in the box a full blown PlayStation, all you have to do, right, is you actually scan the code with your phone or your smart TV and you start playing in one minute. You know, when you buy a Xbox or a, you know, a PlayStation, it takes you a good hour to plug it on the tv, right, and get it working. The performance that we’re getting is, you know, we’re using very advanced gaming cards and servers and the performance that we’re getting is basically almost better than any.
Unidentified Participant
Console out there for this gaming console. Are we using the same Games that we already have or are we developing something new?
Francois-Charles Sirois
Games we’re not developing. Right, guys? I mean, these games cost hundreds of millions of dollars to develop, right? So this is not mobile gaming, it’s really console gaming. You know, just to give you a thought, you know, there’s what, at least a million games on the app Store, right? On mobile gaming, there’s probably 10,000 games on console and PC. And out of 10,000 games, there’s, you know, a thousand of them which are, you know, fun to play. And out of this, there’s 100 of them who capture 80% of the money and even 90% of the money.
And out of the top 100, you know, you have the top 20 rich, which are really, really, really expensive. That’s, you know, you need the tens of millions of dollars license on these. So the key is to be able to offer a console, you know, with, with a bouquet of 200 games which are very fun to play included. And then if you want to, you know, use your, your money and buy additional games, as you know, these games are sold at $50 a game, right? Or more sometimes. So then you can actually go and purchase your own license and add it to the console.
Right. But the key is to have a service that for the price of a controller. Today you get the controller, you get games, and you activate through any device in one minute.
Unidentified Participant
Okay, got it.
Unidentified Speaker
Okay, thank you. Revant, I would like to ask you to come back to queue because we have another participants as well.
Unidentified Participant
All the very best. Thank you.
Unidentified Speaker
We have the next question from the line of Ashish Basin. Ashish, you can ask your question. I have unmuted you.
Unidentified Participant
Hello?
Bikram Sherawat
Yeah, you’re audible.
Unidentified Participant
Hello?
Francois-Charles Sirois
Yeah. Sorry Ashish, we can’t hear you. I think your mic might have an issue.
Unidentified Speaker
Yeah, so in the meantime, we have one question in the chat box from Jeetendra Bhutoria. So he is asking, any update on Chingari investment? And secondly, what is the status of dsphere? I think that you have already answered, but any update on Chingari.
Francois-Charles Sirois
I mean, operationally is doing good. Now we’re negotiation, as I mentioned last quarter, to be able to start selling some of our shares in Shingari. So the key is that we know within this new financial year that starts in April, the key is to start getting money back from that investment.
Unidentified Speaker
Okay, I think that answers his question. We have the next question from the line of Sourav Upadhya Saurabh. I have unmuted your line. You can ask your question.
Unidentified Participant
Thank you. I just Want to pick up from where the previous participant left regarding the console. So where is the manufacturing for the console? Are we importing this and what stops from anybody else sourcing the same consoles and developing games on that? So if you could clarify.
Francois-Charles Sirois
Yeah, two things. You know, cloud gaming is not new, right? As we know. I mean that’s what we’ve been doing with mobile gaming. There’s other service providers that only do cloud gaming. The problem you have with cloud gaming is that very gamer specific, right? It’s not friendly onboarding, quite difficult. Quality of service is a problem depending on your operator. So we wanted to make sure that we really deploy, you know, first of all server capacity, full blown server capacity. We wanted also to have a full blown console experience. So that’s why we’re actually providing the controller.
Controller has to work on every device so it has to be able to sync up rapidly on, on your phone, your TV or computer, you know, in one click. Not something complicated. Game onboarding also that’s why we’re signing up games and have games part of it. So that within the box, you know, you can actually start playing in one minute that you don’t have a long process of, you know, right now, you know, when you actually use cloud gaming and you buy your own games or you know, there’s a long process of onboarding. So we’re trying to really make it friendly, right? You know, as friendly as when you go and buy Xbox or a PlayStation.
Actually more Flint, even more friendly because you still have to plug that Xbox on the TV and you still have to put the DVD in and link it up and you know, it’s quite burdensome even than that process. So we’re trying to make it really, really easy to onboard customers and the quality of the stream, right? 60 frames per second, very high quality video and very good experience. So that’s basically what we do. So you’re right. I mean anybody can start doing this now. To do this you need to have the streaming technology, right? You need to have your own controller.
It took us one year to get the spec right on the controller and get a price that makes sense and be ready for production. It is produced right now in China. We are talking to producer, you know, to get it produced in India also. But right now it was easier for us as a first step to start with China because they already had, you know, the, they’re already producing a lot of, of the current controllers in the market in China. So we use the same type of factories, but it is different, right? It’s different in terms of operation of what we do.
But nobody today, nobody in the market has done a box complete with a controller sold, you know, direct to consumer. I mean the closer. The closest example of this is Google with Stadia five years ago. But if you remember right, you know they, they had a big issue with the streaming technology and it was really, you know, the experience, the customer was really bad. Now five, six years later, technology is impeccable. So that’s why we’re doing this.
Unidentified Participant
Thanks. If I may just continue with understanding the gaming console better. So what is the price point that we are looking at? How are we planning to distribute it and how will we market the games on it? Is there going to be a play store or what are the channels that we will be working with?
Francois-Charles Sirois
Yeah, we’ll have 200 or 500 games included and then you can add your own game and if you don’t have your game then you can actually go, go, you know with one click go to a store, purchase the game using Steam, uploading your license onto the console. And the go to market is both. Right. We’re going to do D2C with B2B right. Meaning that we’re approaching mobile operators for doing this. Plus we’re looking at the D2C strategy. So we’re doing both.
Unidentified Participant
Any comments on the price point and when you speak of D2C are we already in conversations with. Are these, are these existing electronic retail chains any big names that you could quote or what is the plan there?
Francois-Charles Sirois
My answer is going to be just very simple. Yes. I’m not going to comment more for the price point. Right. A PlayStation controller, Xbox controller sells for in promotion 50 but normally it’s like 60, $65 US. So for that same price range or even lower the key is to be able to have you know, multi months, multiple months of gaming service the games included in the controller. So that’s, that’s the price range. Basically you have a full blown console for the price of a controller.
Unidentified Participant
Got it. And you, you said you’re, you’re trying to get this up and running by next quarter. So would it be fair to assume that it should be up and running by the. By the by Q2 of Next Financial year?
Francois-Charles Sirois
Yeah, yeah, yeah for sure.
Unidentified Participant
Okay.
Francois-Charles Sirois
I mean again my juice and again I want to manage everybody’s expectations. Right. It’s, it’s new for us. Right. To be honest, you know we don’t on mobile does not sell anything physical today. Right. So that’s, that’s new and I just Want to manage everybody’s expectations, right? You know, the team, although we’ve been preparing this a lot and working a lot, you know, things will go wrong on some places. So we need to start with small quantities, right? You know, although we have some people asking for huge quantities, right. We can’t just start and say okay, we’re gonna ship 250000 controllers, you know, in one shot.
Doesn’t work, right? You, you have to be able to start with small quantities, see how it goes, fix anything that goes bad in the process. And it doesn’t mean when I say go bad and it doesn’t mean that the controller will not work, right. It’s just that anything in the process, shipment the truck, you know, problems with customs, problem with customer care, returns, right? Because now we have to manage returns, right? So it’s a. So this is new to us. So we have to start with small quantities and that’s why I want to start quicker than later because I want to know right away what’s not going to work so we can fix it right away, right? Before we get to bigger quantities and then it’s a bigger problem, right? We need to fix it with small quantities so that when we have big quantities it goes very smoothly.
So, so that’s the plan.
Unidentified Participant
Thanks a lot, all the best. Hope we can get this up and running quickly.
Unidentified Speaker
Thank you, thank you, thank you Saurabh. So we have the next question from Ashish Basin. Ashish, I have unmuted your line. You can go and ask a question.
Unidentified Participant
Yeah, can you hear me?
Unidentified Speaker
Yes, yes.
Unidentified Participant
So see one of the query is that there is a loan of 88cr in the balance sheet which has been shown as a current liability short term borrowing. So just wanted to know a color on that. What is that loan and what is the maturity for what it is being used when we have a cash balance of more than 130 crores. So just want to get some color on that.
Radhika Venugopal
So this is not, this is short term borrowings what you’re seeing. That’s basically the working capital facilities what we have across the globe, both in India and outside India. These are only used for covering up, these are not term loans and these are only used to cover up our working capital requirement and typically varies from 30 to 90 days.
Unidentified Participant
Okay, one more question is that. I see I wanted to check that whether is CA and ONMO slowing down because the number of subscribers have dipped this quarter and even for onmo the increase in the number of subscriber is not that great. So what’s what would be. We can ref. I mean we can assume in that.
Francois-Charles Sirois
Well, if you look at ca on mo grew because that’s the mobile subscription is ca nonmo. It grew by 30% revenues this quarter. Right. As, as Bikram was explaining, it’s a mix, you know, the, the up and down on number of subs. We finished the last Q2 with, with the big peak. So keep in mind all the acquisition that we started in Q2 and, and continue in Q3, that peak, you know, that’s why the revenues did not get captured in Q2 got captured in Q3 because you picked up. Right? So that, that growth of, of Q2 carried on in Q3 and we got some metrics, you know, we, all the, all the metrics went well this quarter, right.
You know, the, the number of transactions per user went up, the number, the revenue per transaction went up. Plus you know, we had this push from Q2. So that’s why it’s a, it’s a special quarter. Honestly, you know, there’s no way we can plan A27 to 20, you know, 29% growth every quarter. We got it this quarter. That’s why, you know, from, from my point of view, you know, the normal growth from this point on is 10, 15%. This, this is what the gaming business should do for both CA and on MO. 1015 a quarter.
Sure.
Unidentified Participant
Thank you so much.
Francois-Charles Sirois
Thank you.
Unidentified Speaker
Thank you. Ashish. Participants. Those who want to ask the question, they can raise their hands. We have one question in the chat box from Amit Kumar. So he is asking any plan for dividend to shareholders.
Francois-Charles Sirois
Well, to be honest with you, and as much as I’d love to have a dividend right now, I’m really focused on, we are all really focused on launching this, this console. And I, I just want to be clear also cash wise, you know, right now, you know, we’ll be doing a test with small quantities but as we grow cash wise, this has an impact on the cash required. Right? So right now, I mean, you know, you know, we need to launch a gaming console. See how big we can make it. You know, because there’s multiple scenarios, you know, small ones and, and bigger ones.
I think the market is really big, you know, as we share, you know, in this deck. And that’s why we decided to go into this, right? 50% of the gaming market is mobile gaming and 50% of the market of the other is console. Right. Which we never cross into console. And it’s separated between, you know, Sony with the PlayStation, Microsoft with the Xbox and then PC gaming. But you know, and again, on these key games, you know, most of the market is on that top 100 games, right? And almost in the top 20. So it’s really a market which is totally new.
Most markets where we are operating today, including India, you know, there’s 150,000 console being sold in India. That’s it, right. A year. Very, very, very small for what, you know, hundreds of millions of gamers. Nobody, I mean, nobody can afford a $500 console. Big difference between $500 console and you know, $50 less, you know, or, or, or, or even lower console. So, so, so it’s, it’s, it’s, it’s, that’s where the numbers can be. And, and the goal is to do that, that strategy, not just in India, but you know, across all, you know, Africa, Asia, there’s a lot of places, you know, in Africa, in some places, you know, PlayStation cost $800 because of taxes in Africa and all this.
So it’s even worse. So that’s, you know. So all this to say the more we’re going to be successful with the console, the more money we need. I just, just want to be clear. It’s, it looks more like the traditional telecom. You know, success where you need to provide, I mean not in India, but you know, in other markets you need to provide device and the more you have subscribers, the more device you have to pay is the same thing here. Right? We, we’re selling the controller, but still the more we sell, the more we need on the cash flow.
So, so all this to say that, yes, I really hope that, you know, we’ll have a dividend, but it’s not going to be this year. We have to get the console and then we can look at how much profit we’re making and then reinvest it into dividend or more growth. Right, but that’s. Oh, you’re on mute. But yeah, other question. Yes.
Unidentified Participant
Ifc. When I dissect the amounts September versus December with a monthly recurring revenue increasing, our EBITDA on gaming would definitely increase and it would contribute more to the EBITDA and profitability. But when I compare September 26th versus December 26th, the MMR had reduced. Sorry, increased. And probably the EBITDA and other should increase. But in case it went the other way around where the profit had decreased, I know that marketing expenses had increased by 100 million. In spite of all these things, there is something I feel the numbers are not matching in terms of quarter and compare comparison September versus December with all the segments including.
Because like when the gaming increasing and EBITDA being positive, it would contribute more to the profitability and ebitda. But it’s the other way around here. Is it something like the previous? Like EBITDA on gaming in September is good and the EBITDA in December is bad. Can you give some information?
Francois-Charles Sirois
Keep in mind also that. You know, in EBITDA there’s a capex that we had in Q2 that we don’t have in Q3. So we’re not comparing the same EBITDA.
Radhika Venugopal
So you should compare like. For like. If you remove the 16 million of expenses which were capitalized in quarter 2, the comparison would be 70 million EBITDA in quarter 2 versus 81 million EBITDA in quarter 3. So there is an increase of EBITDA if I. If I calculate it on a normalized basis.
Unidentified Participant
Okay, Radhika, like only in Q3 we have this. Expect capitalized expenses. Part of OPEX or pnl.
Radhika Venugopal
It is not charged up to P L. There is a 60 million cost which was capitalized. But Q3 onwards we are charging it off to PNL. Quarter one and quarter two has 21 million and 16 million respectively which is capitalized and not a part of OPEX.
Unidentified Participant
And also on the. Can you throw some light on the EBITDA margins on gaming and other businesses?
Radhika Venugopal
We don’t do segmental reporting. As FC mentioned gaming, pnl. I’m not talking about the ebitda. The contribution margin is positive. So what do you mean by contribution margin? This comes before allocation of all common expenses and corporate costs.
Unidentified Participant
Okay, got it. Thank you. That’s it.
Unidentified Speaker
Thank you. Revant participants. Those who want to ask the question, they can raise their hands.
Francois-Charles Sirois
Hi Balaji.
Unidentified Speaker
The next question is from Balaji. Balaji, you can ask your question. I have unmuted you.
Francois-Charles Sirois
Yeah, you’re on mute. Balaji.
Unidentified Participant
Hi, I’m Audible. Yes. Yeah, in the last quarter like. Like. Someone asked about Busmo demo. About Busmo. So is it possible to upload on any social media platforms? Since it’s not here?
Francois-Charles Sirois
No, you’re totally right. Totally forgot to do a demo in Basmo. Vikram. We could upload it somewhere.
Bikram Sherawat
Two things we are doing, Balaji. There is an experiential zone we are working on which we will upload on our website in a few weeks time. You can have a look. And on social media, especially on LinkedIn, there are certain posts which we have put explaining what the feature capabilities are. Specifically once it is uploaded on the website. Balaji, there will Be an intimation which will go on the social media where people can come and try and see the experience, which we will do.
Unidentified Participant
Okay, thank you very much.
Bikram Sherawat
Thank you, Balaji.
Unidentified Speaker
Thank you. So, participants, anyone wants to ask question, they can raise their hand. So we have a question in the chat box from Jitendra. He’s asking the QIP plan still remains or it has been shelved. Any plans for investor confidence boosting?
Francois-Charles Sirois
No, no, I mean it’s not been shelved. We need to raise money. I just want to be very clear on our current operations, especially profitable. The gaming console, depending on the success, as I was mentioning, will need money. So it’s very important for me that you know, we, we’re out there in the market with the clear product so that the investors can see the product, that the market reflects at least all the investment we’ve been doing on that product. Because right now, to be honest with you, at 49 rupees, raising money is not advisable. And, and the amount of money that we need is dependent of how much that initial success on the, on the console, how much money we really need, right? Because if we don’t need money, there’s no point to raise money.
Especially not at 49 rupees. If we need a lot of money because it’s successful, I hope it reflects in the price and we can raise. But that’s exactly, you know, I’m hoping, you know, during the summer that we can actually reactivate all this and, and close around.
Unidentified Participant
So next question to follow up to that. So next look in Q1 of next year, like FY27. Q1.
Francois-Charles Sirois
Q4, Q1, sorry, two quarters down, right? I mean Q1 for sure, man, we’ll, we’ll have some good indications on, at least on our first test, you know, for the console for qip. Yes, but that, as I was saying, right? I mean we need to get the feedback from the, the first console, right? So that we can really have a clear view to the investors of here’s, here’s the product, here’s how it performs, here’s what we need. Because you know, honestly guys, the business today is profitable, right? The, the only investment we’re doing today is on the console.
You know, we’ve done a lot of investment in the past for gaming. Now all this investment, you know, is translating on the, on the current growth of 27.5%, right. Going with the range of 10, 15% mobile entertainment, you know, and even with Buzmo, right, You know, we’re selling license, growing the Business as usual. So the only reason we would need money and do a QIP is for the gaming console. So we need to have just a bit more data on the feedback. You know, have the. Have everything ready, start selling some small samples, get the feedback so that we can complete the plan of how much money we need so that we can go out to the market and raise money.
Unidentified Speaker
I think that answers his question. So we have the next question from just Burji. Just you can ask the question.
Unidentified Participant
Yes. Hi, can you guys hear me? Yes. I had a question on the presentation. The there’s written 3 million USD monthly recurring revenue that is being guided. Is this just on the current gaming business or this is added towards the gaming console product that we have. So we are assuming that we should be reaching such numbers. No.
Francois-Charles Sirois
8, just to be clear, 18 months ago we gave, we gave the guidance that we would hit 2 million a month, right. In about 18 months. You know, now we’re pretty much there around. So, you know, we did 1.6 million in December. You know, with the current growth of 1015 in one, one or two quarters we’re there. Right. So the indication that within 18 months we should continue the growth that we have. Right. For me it’s, I mean the product is not finished growing, right. The current gaming products, so, so it has to keep on growing.
So I mean, 3 million is a target that we took with the team that, you know, normally with a growth of 1015 a quarter, that’s where we should be. Right. For making the mattress. So basically that’s the guidance and that is also the target for the team. Right. I mean we have to have a target that’s reasonable with the team while we do other products. The gaming console is totally separate and to be honest with you, it can be a lot, can be small. We have to be out there. Right. As I was saying, it’s a new product.
It’s not purely digital. It involves way more around it. So it’s not part of this.
Unidentified Participant
Perfect. Got it. And any targets would we have in the gaming console?
Francois-Charles Sirois
I need to, we need to do that first test. Right. I need to be. We need to build the market to know this.
Unidentified Participant
Thank you. Understood. And any time frame that you potentially have internally.
Francois-Charles Sirois
Yeah. As we discussed. Right. Within the next quarter, a quarter and a half, you know, we should be out there.
Unidentified Participant
And another question please. There’s a few payments which we did, few deals which we did with in Qatar and Sri Lanka. Have we received the payments for it?
Francois-Charles Sirois
Some payments we received. Did we receive all Payments? Not yet but you know most operator, you know that’s unfortunate. Right. That’s why we’re at 122 days. You know DSOs, it’s always the case, right. Operators retain payments, we have to pay others. That’s why Radical stock is also about our credit margin. Right. You know CAR has to run, we have to pay content providers waiting for payment from operators. So that’s. It’s not new business. Right. It’s the business has always been like that.
Unidentified Participant
Got it. Okay. Thank you so much. Thank you. All the best.
Unidentified Speaker
Thank you. Jash, we have the next question from Saurabh. Saurabh, you can ask your question.
Unidentified Participant
FCM back on this. So just understanding the console again. So since we are importing this from China, I mean you would certainly have an understanding of the components etc. That will go into this hardware. Keeping the global political uncertainty in mind, would you be able to share your thoughts or articulate any potential risks that you see going forward? That’s one second is have we onboarded any people who have experience in the hardware business specifically in the gaming console business and how are we preparing to hit the market from that standpoint?
Francois-Charles Sirois
Yeah, just, just two things. Right. Yes. The, the controller, we’ve been working on it for one year now. You know to, to get it ready from China. We are working with manufacturers in India. Right. Because I think that’s that the better is just unfortunately last year it was not clear how we could, we could get it produced in India. Now you know after looking in the market we, we, we think we could be able to produce it in India also. You know all the work that was done, it seems simple, right? It’s only a controller but you know just to get, to make it sure it works on every device and that we have you know the spec and that it’s a high quality controller also not a cheap thing.
Right. We wanted something high quality but low price with volume. So that’s, that’s why it took a bit of time to, to get it there. You’re right, right. There’s a bit big exposure one day you know, I mean we all saw what happened with TikTok, right? You know overnight TikTok in India out we, the last thing we want is to be live and then we can’t buy from China for any reason. So that’s, that’s why we need to, to get other manufacturers and I’m happy to say that you know we’re in discussion with somebody in India so hopefully this, this goes quite fast.
Right after Our test that we can actually produce also directly for India. This is not only for the Indian market. As you know, we say we’re going to be shipping controllers around the world, but we have to do that first test in India. I think it’s our local market. We have to get local feedback and then see what needs to be adjusted for other markets. But yeah, so I mean, do we have anybody from the console industry if you remember. Right. You know we have Stephen Roberts still on the board of Anmo, which was at the Sony PlayStation.
Right. So for a long time. But you know guys, we have a lot of gamers that, that are playing console in the team but you know, I don’t have anybody from the actual console industry except from for Steven that actually, you know, the technical front that came. But you know, let’s keep in mind also that we know the console per se is all hardware. It’s, it’s all, all the hardware is in the server. So it’s mostly software based. There’s no. So it makes it very, very simple to address this market now that it’s all except from the controller that the actual box is, you know, in the cloud and not in the box.
So.
Unidentified Participant
Will there be any events organized around the games that we are offering on the console?
Francois-Charles Sirois
There will be, I mean there’ll be a for sure a, you know, an announcement. There’ll be for sure a marketing budget. But keep in mind again I repeated the first will be a small test. Right. So I mean we’re not gonna blast like crazy and you know, I want to make sure everything works right. It’s not so it’s a different kind of launcher. But yes, we, we have to make sure that the first devices get sold also. Right. We don’t want to be stuck with the first launch and it doesn’t sell. Right. So we need to make sure that marketing is appropriate and that’s why we need partners also.
Right. To, to get their views also. And how do you market this?
Unidentified Participant
Sorry, my question was more specific to events with regards to competitive gaming and maybe, maybe I’m running ahead of, you know, what our plans are. But are there any thoughts around that to bring in more gamers, more participation?
Francois-Charles Sirois
Yeah, again that’s an interesting point. Like you know, the competitive gamers and the top gamers already have a console. Right. So yes, we could displace a console. But right now the market is not to try to convince somebody to put their PlayStation aside and play with, with this. Right. The market is everybody that dreamed of having a PlayStation that could not afford it to buy it. And the ratio is not 10 to 1. Right? It’s, it’s probably 100 to 1. Right. You know how many people in India dream of having a PlayStation at least 100 million.
And how many bought one? You know it’s 150,000 a year. Right. So it’s, it’s really a huge spread. Right. So this, this is the key here.
Unidentified Participant
Great, thank you.
Francois-Charles Sirois
Thank you.
Unidentified Speaker
Thank you. Saurabh. We have the follow up question in chat box from Jitendra. So kindly share if there is any large business expected from Vodafone. As in the past we did about 80 crores per year given Vodafone seems to be back on track in India. So any thoughts on that?
Francois-Charles Sirois
Yeah. Vikram, what do you think about this?
Bikram Sherawat
So, so basically on the existing business which is tones, what we do with them, we will continue to hold on to the same numbers. There are a couple of discussions which we are doing with their enterprise team and the gaming team where we are working with their enterprise team to take our services as a bouquet when they go and sell to their enterprise customers. These are around gamings gaming and basmo. It would take us at least a quarter and a little bit more to conclude that. Please be very mindful of the fact that Vodafone enterprise team themselves are also competing in the market against other people for this, this business.
If that happens then we would be able to see a decent growth in the business with Vodafone. So there are couple of engagements which we are working on Vodafone.
Unidentified Speaker
Hope that answers your question Jitendra. So next question is from Just, just you can unmute yourself like you can go ahead and ask your question.
Unidentified Participant
Yes. Related to the gaming console, who would be our likely competitors in this field? Anyone that you have sized up or internally you guys have seen.
Francois-Charles Sirois
Well, if you look at it today, nobody package a controller with a, you know basically a virtual service and games together. So it’s, it’s quite a bit of an endeavor to all do it. So right now, I mean the, the competitors are the console cloud gaming where somebody a bit more technical will actually, you know, get subscribed to cloud gaming service and use their own controller to, to connect. But that’s not retail per se. Right? It’s not, you know, it’s not used to really address the same market. The easiness of onboarding is not the same.
Right. Do I see you know, Microsoft, Xbox and PlayStation moving more and more towards that direction? For sure. I mean as I said before I don’t see why they would do another console instead of having just a full blown cloud service bundle with a controller and their, you know, game packs. Right. So that’s coming. But that’s exactly the opportunity. Also they’re not there yet. I think the operators again, I mean that’s the picture operators, right. Why wait till the console business gets virtual when the operator can actually hit that market right now. Right. A bit like the App Store, right.
Why did the operator let the App Store to Google Napple, right. Instead of doing something was the same pitch again, right. That’s why, you know, this is really a big industry and that’s where the operator is. Should move in. Because it makes a lot of sense to have servers deployed in the operator. The service being guaranteed, you know, from A to Z to the device. Most operators sell, you know, yes, they have the mobile service, but they also have wi fi with tv. You know, to bundle a controller for every TV they sell is a no brainer.
Right. So that, that’s the pitch to the operators also a lot of them, you know, want to use this as a 5G service also because as you know, 5G doesn’t have that much features except, you know, more bandwidth. But for what? Right. So that’s, you know, that’s a lot of operators are thinking about this for, for their 5G service. So that’s, that’s, that’s the plan here.
Unidentified Participant
Perfect. Thank you.
Unidentified Speaker
Thank you, Jess. So we have a follow up question from Revant in the chat box. He’s asking have we purchased a 15 GPU and if not for Diosphere and if not, is it lying ideal. So.
Francois-Charles Sirois
Sorry, I’m not sure I understand the question here.
Unidentified Participant
Sorry, it was wrong mind. Actually like two or three, two or three quarters back we, we were said that you will be investing almost 15 million in GPU which could be used for the Diosphere as we don’t have any like concrete agreement or working with Geosphere. Is the GPU still lighting lying idle or are we using this to purpose?
Francois-Charles Sirois
Oh no, we didn’t. You know, if you remember right, that’s where I was also raising money funds or financing the servers or using the qip. Right. That’s why we’re in a rush to do the qip. But you know, then the metrics did not work. Right. That was the problem we had with the business case with dsphere. Right. The actual metrics of how much we would spend in servers and the actual money in money out. I mean it wasn’t, it was not interesting Right. It was, it was in itself very complicated. So that’s why we, you know, we went back into discussion with them and at the end, you know, so we never bought the servers.
Unidentified Participant
Thank you.
Unidentified Speaker
Thank you, Raven. So we have a question from Saurabh. What kind of margins are we expecting on the console itself? What is the critical mass of user for it to be profitable and where will we host the games?
Francois-Charles Sirois
Yeah, I mean that’s, to be honest with you, it’s a bit too detailed. You know, I’d love to share this with you once we have it up and running. You know, I’ll just give you one metric that we’re debating, right? I mean that has a direct impact on the business case, the engagement. You know, you sell the box, how many people actually go and play, you know, what’s the engagement that stay play month to month to month. Right. The business case is at 60 engagement, it could be 40 engagement, could be 20% engagement. Right. And this metric has no impact a bit, but not too much on how many boxes you sell. So you could sell a lot of boxes and have an engagement of 20%. Like you could sell less boxes to more professional gamers, but they’re engaged at 60%. Right. So obviously it has a direct impact on the cost of servers, you know, and, and the biggest cost in there, aside from the controller is the server controller. We get the money back. It’s cash flow. Servers actually cost to maintain. Right. So depending, you know, so, so just the whole business case is, is based on this, right? So that’s why I’m saying we have to be out there to know exactly, you know, the actual normal gamer buying this box, the average gamer buying our box, what is this engagement, right? And what’s the actual cost, how much time they play, how many bucks do we sell, how fast do we sell the box, how fast do we get paid back? Right? So in the cash flow.
So, so before I can confirm anything, right. That’s why we have to be out there selling boxes, looking at the metrics and coming back with more data to you.
Unidentified Speaker
I hope that answers your question, Saurabh.
Unidentified Participant
Just, just. Yeah, sorry, just. Different continuation. So do we, do we, have we done any market research just to understand if, you know, a strategy to kind of penetrate the market with, let’s say an inexpensive console just, just to get users to buy in versus, you know, selling it at a decent margin to make the money on the console. So have we done any market research to understand the consumer behavior yet so that we can strategize Accordingly or are we just going to launch the product and then figure our way out?
Francois-Charles Sirois
No, we’re and we’re working with our partner on this also to figure out what’s the right price. Right. But again, you know, you know, yes, there’s a strategy where we could make this very low thinking that people would just subscribe. Right. But again you know, we’re not in the, you know we’re not today in the industry of manufacturing selling you know, controllers and boxes. So I want to be careful before we launch. That’s why I want to do this, you know we want to do this test to get more data and I want to make sure this test is, is somewhat lucrative.
Right. I don’t want to. It’s easy to bring a price down. It’s very difficult to bring a price up. So that’s why we’re targeting more the current pricing of a current controller because we’re offering way more. We’re offering you know, games and a full console with the controller. If we needed to do additional discount or get, you know, obviously we’ll make money on subscription add on options, you know, better quality videos, you know, selling games. We’ll make a profit on selling games. There’s a lot of long tail revenues that can be on. But still I would prefer to have today, especially today doesn’t exist in the market.
Right. So there’s no point also to bring it down to half the price and then, and, and then losing more money. Right. I want to make sure that the business case stand by itself at least to start. Right. So but that’s, that’s exactly the tests about.
Unidentified Participant
Okay, just one question got missed. Where are we hosting these games from?
Francois-Charles Sirois
On our servers all you know, we do a contract with the, you know, game aggregators. We get 200 games, we need to onboard them on our servers and you know we have the game right on our server.
Unidentified Participant
Forgive my ignorance. Where, where are these servers based out of? Are we, are we engaging with it?
Francois-Charles Sirois
Every, every region where we launch in India for example we’ll have servers in Bangalore, you know, Delhi, Mumbai, you know, across to make sure that we serve the key markets. If we launch in Spain here we’ll need the you know, servers across Spain, you know, it, it, it. You know right now you don’t need a server in the same city. So it’s very helpful. But you ideally need a server in the country. So, so we need servers in each country that we launch.
Unidentified Participant
Okay, thank you.
Francois-Charles Sirois
Thank you.
Unidentified Speaker
Thank you Saurabh. As we have already reached our limit of the call. So I will take last question from the chat box from Shailendra. He is asking are we defocusing from videos ads? Its share of revenue has declined significantly and have we lost any telecom clients for our video services?
Francois-Charles Sirois
No, actually video. Yeah, you’re right actually this quarter actually the big down is on videos again. But we’re working you know as I was mentioning last many quarters back, we’re working on a new service currently negotiation. So as soon as it’s confirmed we should restabilize the video revenues. But you know, as we said, you know the video, mobile, video service, subscriptions, you know it’s always going to be there, right? It’s not so it’s just that. Yes, totally right this quarter there was a down on videos and that’s why we want to launch a new service to rebalance it out here.
Unidentified Speaker
He’s asking the follow up question. In gaming business through telecom operators, what percentage value capture that we get? So if telecom operator is making $1 from subscription do we capture $0.10 or $0.20?
Francois-Charles Sirois
So you know a normal app store, right, not the telecom operator is 70, 30. Right. That’s how much the App Store they take 70% they let 30% to the App developer. In our case it goes sometimes up to 70% like the app Store but because of the billing, you know billing and easiness to be able to use the service and sometimes the promotion that the operator does and, and you know more around it. So it ranged from 70% which is the best that they keep. So we. Of the revenues down to. Sorry I, I mixed it up.
Right. It’s. It’s 30% for the op. The. The App Store. 70%. It’s a, it’s a cost of 30. In our case it’s 70%. The best up down to the minimum is 45% but in those cases there’s a lot of promo or a lot of service from the operator. So it’s 45% to 70% percent.
Unidentified Speaker
Hope that answers your question, Shailendra. We’ll take it as a last question for the call today. And over to you FC for closing comments.
Francois-Charles Sirois
Thank you all. Really really look forward to our next call. I hope I have more news on the, on the console, Gaming console and thank you for being there always. So we’ll speak to you in May, end of May. Thank you.
Unidentified Speaker
Thank you everyone for joining the call and on behalf of on Mobile Global Ltd. We conclude the call. Thank you.
Bikram Sherawat
Thank you. All the best. Thank you.
Francois-Charles Sirois
Thank you. Thank you Pratik. Thank you the recording has stopped.