Mobile Value-Added Services

   Instant messaging is a rapidly expanding mode of real-time communication across the world. The global messaging market, which was $65 billion in 2007, is predicted to touch $117 billion by 2012 according to Portio Research. A more recent report also states that Mobile Instant Messaging, which generated $2.5 billion in 2008, is expected to increase to $12.4 billion by 2013.

Geodesic

  Geodesic is an innovative technology company making software products focused on Information, communication and entertainment for mobile phones and desktop computers. The products include Instant messenger, Mobile VoIP (Voice over Internet Protocol) and Internet radio. The company has plans to launch a VoIP product soon. The company has tied with up with leading online & offline marketing companies to globally launch its new product.

   Geodesic derives most of its revenues from developing instant messaging platforms/services and licensing them to enterprises as well as retail users (directly or indirectly) under the ‘Mundu’ brand. The company’s products (Mundu ICE stack) cater to clients ranging from portals and publishers to telecom operators, mobile handset manufacturers, system integrators and even retail consumers. Geodesic also licenses its instant messaging platform to mobile handset manufacturers and telecom operators, thus providing it with sustainable revenue streams, with scope for expanding margins.


    The client base for Geodesic also includes portals such as Naukri, bigadda.com, Edelweiss Capital Ltd, First Global Stock Broking, Business Standard and Dialog Telekom.



Headquartered in India, Offices in: UK, Sweden, Germany, Hong Kong, Mauritius, USA


Subsidiaries: 

Chandamama India Limited
Engage Solutions Limited
Geodesic Technology Solutions Limited
Geodesic Information Systems Inc
Geodesic Information Systems AB



Recent News Updates:

Geodesic Holdings Limited, wholly owned subsidiary of Geodesic Limited has signed a Share Purchase Agreement to acquire 100% of a privately held software company, headquartered in Uruguay. The company focuses on developing advanced messaging and collaboration solutions for Telecom operators, and has implemented their solution across 12 carriers in Latin America, South Africa and Asia.

Geodesic has announced its decision to buyback 25% of the equity shares at a maximum price of Rs 75 a share.

Recently, Geodesic won a deal from Idea Cellular in India, for Internet radio services on a revenue sharing basis.


Financial:


Geodesic reported revenues of Rs 191.07 crore for the quarter ended Dec 31, 2008, an increase of 115% as compared to the quarter ended Dec 31, 2007. 

Geodesic’s operating income for the third quarter ended Dec 31, 2008 was Rs 183.46 crore, an increase of 114% as compared to the quarter ended Dec 31, 2007. 

Geodesic’s net profit for the third quarter ended Dec 31, 2008 soared by 93.23% at Rs 83.70 crore compared to the quarter ended Dec 31, 2007. 


year High : 84

Year Low : 38

CMP : 66

Face Value : 2


One can invest in this stock at Current Market Price for a good return over a period of 3-5 years.

Mobile value-added services

Onmobile Global Ltd


OnMobile is India's largest VAS and Data solutions provider for Mobile, Landline and Media Service Providers. OnMobile's innovative Multimodal and Multiservices Platform integrates technologies like Speech Recognition, WAP, SMS, MMS, USSD, Voice and Location amongst others. This enables Service Providers, media houses, corporate, & merchants to offer interactive services on any network technology to provide an enriched end-user experience. In addition to providing technology, platform, applications and content, OnMobile also offers its customers a Managed Services operations model. OnMobile is the first Indian telecom VAS service company to go public. It made its debut on the two most prominent Indian Stock Exchanges - BSE & NSE. OnMobile is headquartered in Bangalore, with offices in 9 countries, customers in over 20 countries, and employee strength of 1000+.

All leading mobile operators in the country such as BSNL, Bharti Airtel, RCom, Vodafone Essar and Idea Cellular feature on the client list. The revenue share for any VAS product is between 20-25 per cent of usage. With all these operators witnessing rapid subscribing additions and looking to augment non-voice revenues to stem the falling realisation, OnMobile appears well-placed to benefit from the opportunity.

OnMobile recently acquired Telsima, a natural speech recognition software player that has capabilities in foreign and several Indian languages. This paves the way for additional license fee in addition to revenue share for OnMobile in addition to geographical expansion.

Recent News:

Norwest Venture Partners India has invested about $15 million (Rs.75 crore) for a stake less than 5% in OnMobile Global Ltd, a provider of value-added services for mobile phones.


Financials:

OnMobile Global, has announced a 7.63 per cent growth in net profit to Rs 27.64 crore for the third quarter ended 31 December 2008. Total revenue rose to Rs 115.72 crore in the latest quarter from Rs 80.50 crore in the corresponding year-ago period.


CMP : 314

52wk H/L (Rs) 744.70 - 185.20 


Onmobile Advantage:

The inorganic growth strategy of the company has started to boost the revenues of the company with the share of international revenues having gone up from 19% in the last year to 24% as on December 2008. The international revenues have registered a growth of approximately 90% as compared to a growth of 40% in the domestic revenues. The share of international revenues has gone up due to the contributions from Voxmobili and Telisma.



Long Term Investors can stay invested in this stock and can add this stock on dips for a period of 3-5 years. (Buy 200-250)

Mobile value added service

Mobile value added services market is expected cross 12,000 crore in 2009.Current Mobile VAS industry is estimated at Rs. 5780 crore.To Grow 70% YOY to Rs. 9760 crores by end June 2009 & Rs.16520 crores by end June 2010.MVAS currently contributes around 9 % to the operator’s revenue.It is expected to increase to 10.4 % in the next 1 year and 12% by June 2010. 


Tanla Solutions

Tanla Solutions, predominantly a network aggregator in the mobile value added services (MVAS) space.An integrated play in the mobile billing and value added services catering largely to top mobile operators in the UK and Ireland, synergies from the acquisition of Openbit and an expanding domestic presence are key business drivers for Tanla. Content aggregators typically enable content from music companies, websites and entertainment companies to be made available in a downloadable format on mobile phones.

Tanla has end-to-end offerings in the mobile value added services segment, with network aggregation, product offerings and professional services. The company derives 78 per cent of its revenues from the network aggregation services. Its top clients are leading European mobile operators such as O2, Orange and Vodafone, all pan-European players, thus enabling Tanla to expand its footprint.

Tanla Solutions offers end-to-end mobile commerce, mobile entertainment, mobile internet and mobile advertising solutions and works in partnership with some of the top telecom operators worldwide such as MTN, Vodafone, O2, T-Mobile and Airtel among others. It has subsidiaries and offices in the UK, Singapore, Ireland, US, Dubai, Malaysia, Srilanka, South Africa, Spain and 
Finland.

Tanla Solutions’ acquisition of Openbit gives it a clear edge in terms of enhancing its offering in the on-device mobile payment segment. It could also help Tanla expand operations in new regions and create a sustainable revenue stream.

The acquisition holds several positives for Tanla. Openbit has strong tie-ups with players such Nokia and has its software products installed in 20 million Nokia phones. This deal can help Openbit extend its relationship with Nokia in countries such as China and India, where mobile subscribers are being added at 8 million a month.




Recent News:

Tanla Solutions, a telecom infrastructure provider, has partnered with Mahanagar Telephone Nigam (MTNL) to roll out third generation (3G) value added services in New Delhi. Tanla‘s 3G VAS platform enables a number of Video based interactive applications like Video IVR Portals, Video Chat, Video SMS and Video alerts. This enables mobile operators and service providers to enhance portal offerings with feature-rich, personalized video interactivity.

Tanla Solutions is forming a 50:50 joint venture with Spanish mobile value-added services provider Zed Worldwide to develop and sell mobile content. The proposed JV will also provide mobile advertising and related services to telecom operators in India. It would entail initial investments of Rs 63 crore in the paid up capital. Both the partners will contribute Rs 31.5 crore each for the venture.

Financials:

The firm which had sales of Rs 460 crore in 2007-08, generates 95% of its revenues from the overseas markets. It expects share of domestic market to grow to 15-20% in the next two years.


Three months ended Dec 31

(Versus the same period a year earlier, in million)

Net Profit 439.50 vs 432.70

Total Income 1,681.95 vs 1,240.34

Results are consolidated



Year 2009

High : 93.95

Low : 21.2 

Face Value: 1

EPS :1.70 (Last Qtr)

CMP : 29.50

It will give good returns for long term investors who can hold it for 2-5 years.