Affle India is buzzing in the market after its second quarter net profit jumped by more than 50 percent year-on-year (YoY) to Rs 15.5 crore. Anuj Khanna Sohum, chairman, managing director and CEO of Affle India, discussed the company's Q2 performance and its outlook going ahead.
Sohum said that the second half of the year should see higher revenue than first half and consequently on bottomline there should be a good trendline.
“While we are a growth oriented company, we are also very-very bottomline, financially sensible company. We are consistently investing in all the key areas where growth for the future is going to come from. Therefore, if you look at our data and inventory cost, we have invested more in this area versus what we did in H1,” he said.
Shares of Affle (India) climb 10% on robust Q2 earnings
“There are very strong growth drivers at an industry level in our business. The first and the biggest growth factor is that people like you and me who are smartphone users are increasingly spending more time on smart devices. Second, we are also transacting more on smart devices with online payments and the average value of this transaction is also going up.
“Therefore, when we look at that trendline, there is no option for the advertisers and marketers across all industry segments where we work. So all these advertisers are increasingly spending a bigger part of their marketing spends on digital, on data-led programmatic consumer platform-based advertising which Affle offers and this is the trend that will continue over the next five years because none of us as consumers are going to use smartphones any lesser as we go along," he added.
On global business front, Sohum said: “We are delivering 35.1 million converted users overall and India is growing a little bit faster; we are growing over 60 percent on India CPCU [Chartered Property Casualty Underwriter] business. In the rest of the world business we are growing about 25 percent.
“In India, we are growing faster than industry growth and in international business we are growing at par with industry growth but even within international business we are growing faster than industry matrix in other emerging markets like South East Asia, Middle East Africa,” he added.