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Mobile value added services firm OnMobile Global is banking on video and gaming to be its growth drivers.
Listed on both the NSE and the BSE, the Bengaluru-based company has a presence in over 50 countries and focusses on providing mobile ringback tones (popularly called Caller Tunes), video and infotainment services – such as horoscope and quiz contests.
The company reported a consolidated turnover of ₹636 crore in FY18 and a net profit of about ₹11 crore.
According to Ganesh Murthy, CFO, OnMobile is planning to launch its mobile games (for mobile phones and tablets) — ‘ONMO’ Games — in India, within this fiscal.
So far, it has tied up with Telefonica to launch its mobile games in Spain, with monthly subscription charges of around €5-10 (₹400-800).
“Mobile gaming has long-term potential (in India). We are in talks with almost all telecom companies here. Over the next few months we may look at launches,” he told BusinessLine . Compared to developed and developing economies like Japan, the US and China, where the market size is over $11 billion, app-based gaming (or mobile gaming) is still a nascent market in India. It is expected to be worth $50 million soon in India.
“We may also look at acquiring a gaming platform if the need arises,” he said.
Revenue model
In India, OnMobile could explore the telco-billing model (where the billing for game purchases and otherwise will be done by the telco and charged to the user’s bill).
Like all app-based games, options like in-game purchases; part free-part pay per use model and so on are also being explored. “We are exploring various models specifically targeting the Indian market,” Murthy said.
Once the model stabilises, OnMobile is looking at around $20-30 million (₹135-200 crore) annual revenues from the segment.
Other growth drivers
Other than mobile games, OnMobile has targeted video as the other growth driver. It is tying up with content providers and making investments towards ensuring higher returns from this segment. Focus on regional content is one such area which the company intends to tap.
François-Charles Sirois the President and Chief Executive Officer, OnMobile Systems Inc, during a recent investor call, maintained that the company was working towards launching a new regional video service with local language content. The service is expected to be launched in India, Bangladesh and West Asia, in the coming weeks.
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