In the July-September quarter (Q2FY21), the company’s consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) more-than-doubled to Rs 82 crore as compared to Rs 36 crore in Q2FY20. Increase in EBITDA margin to 50 per cent in Q2FY21 from 23 per cent in Q2FY20 was primarily driven by sustained, as well as, temporary benefits arising from various cost optimization initiatives undertaken during the last six months.
With small and large businesses increasingly adopting digital means to support business growth, the management foresees a higher demand for B2B online classifieds. "As micro, small and medium enterprises (MSMEs) face huge challenges in transacting with offline counterparts, owing to a highly fragmented and unorganised B2B market, coupled with an under-developed commerce infrastructure, the market potential of this service is significant," the company said in its FY2019-20 annual report.
While the business has been impacted by external factors in the previous fiscal and will very likely remain subdued in FY 2020-21 following the Covid-19 contagion, the company foresees eventual recovery and significant success as the digitization of trade and transactions is an unstoppable phenomenon.
Meanwhile, shares of Affle (India) were locked in upper circuit for the second straight day, up 5 per cent at Rs 4,068 on the BSE. The stock surpassed its previous high of Rs 3,959 recorded on December 3, 2020.
For Q2FY21, Affle reported a strong performance as consolidated revenue from operations grew 59 per cent year-on-year (YoY) to Rs 135 crore. EBITDA was up 58 per cent YoY at Rs 34.4 crore; however, margin remained flat at 25.5 per cent over the previous year quarter.
The management said Q2FY21 was marked with accelerated business momentum. Changing the macro landscape with greater consumer adoption of mobile and connected devices is increasingly driving the advertiser budget shifts towards ROI and data-focused digital marketing. This is making Affle an indispensable part of the mobile marketing ecosystem.
Affle is a global technology company with a proprietary consumer intelligence platform that delivers consumer engagements, acquisitions and transactions through relevant mobile advertising. The platform aims to enhance returns on marketing investment through contextual mobile ads and also by reducing digital ad fraud.
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