Rediff.Com reports results for the second quarter

November 14th, 2007 - 8:15 am ICT by admin  
Performance Highlights:

Financial results for the quarter ended September 30, 2007

– Revenues for the quarter ended September 30, 2007 totalled 7.86 million dollars, an increase of 18% over revenues from the quarter ended September 30, 2006.

– India Online revenues, which include advertising and fee-based revenues, for the quarter ended September 30, 2007 totalled 5.73 million dollars, an increase of 22% compared to India Online revenues for the quarter ended September 30, 2006.

– US Publishing revenues for the quarter ended September 30, 2007 totalled 2.13 million dollars, an increase of 9% over US Publishing revenues for the quarter ended September 30, 2006.

– Gross margins increased to 82% for the quarter ended September 30, 2007, compared to 80% for the quarter ended September 30, 2006.

– Operating EBITDA decreased marginally to 1.04 million dollars for the quarter ended September 30, 2007, compared to 1.14 million dollars for the quarter ended September 30, 2006.

– Net income for the quarter ended September 30, 2007 was 0.89 million dollars, or 3.04 cents per ADS, compared to a net income of 1.50 million dollars, or 5.14 cents per ADS, for the quarter ended September 30, 2006.

Registered Users

– Registered users grew to 59.8 million as of September 30, 2007, a 25% increase over the number of registered users as of September 30, 2006.

Advertising Revenues

– Highlights and trends for the India Online advertising business include:

1. The number of companies advertising on Rediff’s website for the quarter ended September 30, 2007 totalled approximately 190, as compared to approximately 160 during the same quarter in the prior fiscal year.

2. The following five industry categories accounted for 56% of the Company’s advertising revenues for the quarter ended September 30, 2007: Consumer Finance, Employment, Travel, Matrimonial and Insurance.

3. For the quarter ended September 30, 2007, the top 10 advertisers contributed approximately 45% of advertising revenue for the India Online advertising business, compared to 57% during the same period in the prior fiscal year.

Product Innovation

– The Company’s video platform iShare launched last quarter has gathered momentum. The Company continued to enhance the platform: a new video and audio player with auto play, facility to view videos in full screen mode and a lighter version of the iShare client are some of the new features added.

The Company is beta testing Rediff Language Search in eight Indian languages. It allows users to enter Indian language queries using QWERTY keyboards and obtain results in their desired language.

– The Company enhanced its Consumer Finance Channel, Moneywiz with Market Voices, a live running commentary. This commentary is updated every few minutes during the trading hours of the Indian stock markets.

Financial Results

Revenues

Revenues for the quarter ended September 30, 2007 increased by 18% to 7.86 million dollars, as compared to 6.66 million dollars in the same quarter last fiscal year.

Revenues from India Online, which comprised online advertising and fee-based services, increased by 22% 5.73 million dollars during the quarter ended September 30, 2007 compared to 4.71 million dollars during the same quarter last fiscal year.

Revenues from US Publishing for the quarter ended September 30, 2007 increased by 9% to 2.13 million dollars from 1.95 million dollars during the same quarter last fiscal year.

Gross Margin

Gross margins increased to 82% for the quarter ended September 30, 2007 as compared to 80% for the quarter ended September 30, 2006.

Operating Expenses

Operating expenses increased by 29% to 5.39 million dollars for the quarter ended September 30, 2007, compared to 4.19 million dollars for the same quarter last fiscal year, primarily due to higher product development and general and administrative costs. Operating expenses for the quarter ended September 30, 2007 included a charge of 0.41 million dollars on account of stock-based compensation cost compared to 0.23 million dollars for the same quarter last year.

Operating EBITDA

Operating EBITDA decreased marginally to 1.04 million dollars for the quarter ended September 30, 2007 as compared to an Operating EBITDA of 1.14 million dollars for the corresponding quarter last fiscal year.

Depreciation, Interest Income and Foreign Exchange

Depreciation and amortization expenses increased to 1.46 million dollars for the quarter ended September 30, 2007 compared to 0.60 million dollars for the same quarter last fiscal year.

Interest income increased to 1.44 million dollars for the quarter ended September 30, 2007 compared to 0.91 million dollars for the same quarter last fiscal year.

There was a foreign exchange loss of 0.12 million dollars during the quarter ended September 30, 2007 arising from the conversion of cash deposits and other balances held in US Dollars into the Company’s functional currency (the Indian Rupee) for financial reporting purposes due to the strengthening of the Indian Rupee against the US Dollar.

Net Income

Net income for the quarter ended September 30, 2007 was 0.89 million dollars, or 3.04 cents per ADS, compared to a net income of 1.50 million dollars, or 5.14 cents per ADS, for the same quarter last fiscal year.

Total cash and cash equivalents and short term deposits with banks as of September 30, 2007 was approximately 59.1 million dollars. (ANI)

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