OnMobile Global Ltd

- No immediate plans for new fundraising through equity or debt were indicated in the call. - On the Chingari investment, Sanjay Baweja mentioned they are looking to raise more funds but do not expect this in the next 1-2 quarters, given the subdued market conditions. - The company currently has sufficient cash resources and facilities to support growth in Challenges Arena and ONMO segments. - Cash position has improved and is expected to remain stable while supporting ongoing marketing and R&D investments. - No explicit mention of new equity or debt fundraising for OnMobile itself in the near term.

- OnMobile Global is currently in an investment phase, particularly investing in marketing to drive growth in new geographies and with new operators. - Marketing investment is significant in the initial period after launching with new operators to ramp up user acquisition. - The company continues to invest in R&D from a product development angle. - Investments are expected to stabilize as customer bases mature, leading to better profitability and cash generation. - No specific large capital expenditure (capex) announcements were made, but ongoing investments in marketing and R&D are highlighted as strategic priorities. - Cash balance has improved and is expected to remain stable, supporting continued investment in growth without pressing cash constraints. - Chingari investment: No immediate monetization plans; awaiting potential equity rounds by Chingari before any realization. Overall, the focus is on marketing and R&D investments to scale gaming and mobile entertainment businesses rather than heavy capex.

- The company expects rapid growth in mobile gaming revenues in coming quarters, driven by onboarding new customers and scaling existing ones. - They aim to grow from 75 live gaming customers in Q2 FY’24 to 100+ in Q3 and ultimately 200 operators within a year. - Mobile gaming subscriber base is targeted to reach about 5.2 million by Q3 FY’24, up from 4.47 million in Q2. - Gaming revenues are anticipated to contribute around 25% of total revenues by FY’24 and FY’25, up from 12-13%. - Europe and Tier 1 markets, with higher ARPUs, are key growth areas, with 5-7 European customers expected live in Q3 FY’24. - Despite temporary impacts like Vodafone Idea’s business model change, base revenue for growth is established, with future quarters expected to see strong revenue ramp-up. - Marketing investments are heavy short-term but expected to stabilize, leading to higher profitability and EBITDA margins moving forward.

- EBITDA margin is expected to improve from the current 9%, with the old business stabilizing around 18% margin and gaming business targeting 25%+ EBITDA margin once stabilized. - Gaming EBITDA is projected to exceed 30% after stabilization, driving overall profitability growth. - Marketing costs will be high temporarily due to new customer launches but will normalize, supporting margin recovery and improvement. - Revenue growth is expected from rapid ramp-up of new gaming customers; 123 contract confirmations with 83 live as of Q2, targeting 100+ live customers in Q3 (33% growth). - EPS improved in H1 FY'24 to INR 1.7 vs INR 0.4 YoY, indicating growing profitability; further EPS growth is anticipated as revenues and margins improve. - COVID-like volatility may persist short term, but medium-term organic growth and cost optimization will drive earnings expansion. - Cash generation is stable with reinvestment into product marketing and R&D supporting future earnings growth.

- OnMobile has a strong pipeline with 123 contract confirmations as of Q2 FY24. - Out of these, 83 customers are already live. - The company aims to go live with 100-plus customers by Q3 FY24, representing a 33% growth. - The target is to sign and be live with around 200 operators within the next 4 to 6 quarters. - This expansion will significantly reduce customer concentration risk. - The company is making rapid progress in Europe, expecting 5 to 7 European customers to go live in Q3 FY24. - Overall, the momentum continues with a healthy pipeline and new clients expected to go live in upcoming quarters, supporting rapid growth in gaming revenue.