Shares of infotainment company Onmobile Global are higher by 4% after the company said it is targetting $2 million in monthly recurring revenue (MRR) from mobile gaming alone in the next 18-24 months, double the current value. The management is also aiming to make mobile gaming 50% of OnMobile's revenue by next fiscal.
Target Gaming Growth
Currently, gaming is the fastest growing revenue segment for the company. Going forward, by Q4FY26, OnMobile is targetting to double its subscription revenue in the mobile gaming vertical. The company has nearly doubled its active gaming subscribers to 8.49 million in five quarters.
"We are on track to make gaming profitable by year-end and are now concentrating on securing large strategic deals that will elevate our business to the next level," Bikram Singh Sherawat, President & COO, OnMobile said.
OnMobile shared key industry trends in the global gaming business, which it says is poised to reach $665 billion in size by 2030 at a CAGR of 13.2%. Within gaming, mobile is the fastest growing segment globally, contributing 50% to the gaming revenue. 63% of the mobile app revenue comes from gaming, OnMobile said.
Gaming Partnership
The company has also signed a pact with DeOSphere for advanced gaming services, using its operating system on OnMobile’s infrastructure, which it says will deliver unprecedented streaming performance. "It also opens up our global private network to key industry players and capitalises on the robust infrastructure we’ve built over years," Bikram Singh Sherawat, President & COO, OnMobile Global said.
The development is a step in monetization of Onmobile's core asset, the company said. The 'DeOSphere Edge' gives games, movies and other GPU-intensive applications to run on near-zero latency, and delivers economic advantages, Orlando Bayter, CEO and Founder of DeOSphere said.
Earnings
For the September quarter, OnMobile clocked a net loss of Rs 12.1 crore versus Rs 8.5 crore profit, with a 3.2% on year fall in gross revenue at Rs 132 crore. Operating profit margin contracted by 4.9% as against 7.1% on year. Its mobile gaming revenue rose by 27.3% QoQ to Rs 32.2 crore during Q2FY25, with 8.49 million active subscriber base.
On a YTD basis, shares of Onmobile Global are down by 25%.
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