Route Mobile (ROUTE) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue in Q2 FY 2025 and H1 FY24-25 revenue of ₹22,168 million, up 11.9% year-over-year, with strong EBITDA and PAT growth despite seasonality and geopolitical headwinds.

• Processed 77.6 billion billable transactions in H1 FY24-25, with new product revenue up 32% year-over-year and notable wins in metro ticketing and WhatsApp-based services.

• Board recommended and declared an interim dividend of ₹6 per share based on robust H1 FY25 performance.

• Proximus Opal S.A. completed acquisition of a 74.90% stake and met public shareholding criteria.

• Strong business momentum from new large e-commerce deals, ongoing synergies with Proximus Group, and cross-selling initiatives with TeleSign.

Financial highlights

• Q2 FY25 revenue from operations grew 9.7% YoY to ₹11,134 million; H1 FY25 revenue reached ₹22,168 million.

• Q2 FY25 EBITDA grew 5.5% YoY to ₹1,352 million; H1 FY25 EBITDA at ₹2,709 million with a margin of 12.2%.

• Q2 FY25 PAT rose to ₹1,070 million, including an exceptional gain of ₹62.8 million; H1 FY25 PAT at ₹2,709 million.

• Cash and cash equivalents as of September 30, 2024, were ₹11,145 million; net cash at ₹5,836 million.

• Cash flow from operations for H1 FY25 was ₹2,106 million, with CFO/EBITDA conversion at 78%.

Outlook and guidance

• Confident in meeting full-year revenue and margin guidance, expecting strong H2 performance driven by festive season, new deals, and operating leverage.

• EBITDA margin guidance for FY25 is around 13%, with H2 expected to outperform H1 due to seasonality and fixed overheads.

• Revenue growth guidance of 18%-22% for FY25, with H2 requiring 22%-24% growth to meet lower end.

• Cross-sell initiatives with Telesign and Proximus, and partnerships with Infosys and Microsoft, expected to drive future revenue momentum.