One 97 Communications' net loss widens to Rs 840 crore in Q1 FY25

One 97 Communications has reported a consolidated net loss of Rs 840.1 crore in Q1 FY25 as against a net loss of Rs 358.4 crore recorded in Q1 FY24.

Revenue from operations for the period under review fell by 36% year-over-year (YoY) to Rs 1,502 crore.

On the segmental front, Payments & Financial Services revenue declined by 39% YoY to Rs 1,164 crore. Of this, revenue from Payment Services to Consumers was Rs 83 crore (down 85% YoY), revenue from Payment Services to Merchants was Rs 801 crore (down 5% YoY) and revenue from Financial Services and Others was Rs 280 crore (down 46% YoY).

Further, Marketing Services revenue and other operating revenue amounted to Rs 321 crore (down 21% YoY) and Rs 16 crore (down 15% YoY), respectively.

In the first quarter of FY25, contribution profit was Rs 755 crore (contribution margin of 50%). We expect contribution margins to remain in the 50-55% range (including UPI incentives) with some variations from quarter to quarter due to seasonality and UPI incentives timing, the company said in a statement.

EBITDA before ESOP was Rs (545) crore in Q1 FY25 as against Rs 84 crore recorded in Q1 FY24.

The company expects revenue and EBITDA before ESOP to start improving from Q2 FY 2025 on account of growth in operating metrics and cost optimisation. Q1 FY 2025 ESOP cost was lower at Rs 247 crore, on account of ESOP lapses at the time of employee separation during the quarter.

Pre-tax loss for Q1 FY25 was Rs 838.6 crore as against Rs 354 crore recorded in Q1 FY24.

One 97 Communications Limited (OCL) that owns the Paytm brand, Indias leading payments and financial services distribution company and the pioneer of QR and mobile payments.

The scrip rose 2.60% to currently trade at Rs 456.60 on the BSE.

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