Rediff Q1 Results: Revenues Grew 37% To $5.78 Million; Net Profit Zooms To $1.98 Million

India’s premier internet portal Rediff.com has announced their first quarter results for the period ending June 30, 2006. The biggest highlight is that the net profits have zoomed from a mere $53,000 to almost $2 million. Kudos to the team for the high growth in profits. Here are the highlights (the release here).

Revenues
Its revenues for the quarter were $5.78 million, an increase of 37 per cent compared to the same quarter last year. They are broken into two broad segments — India Online revenues, which grew 52 per cent to $4.06 million, and revenues from U.S. Publishing, which grew by 12 per cent to $1.72 million.

Margins
Gross Margins during the quarter ended June 30, 2006 stood at 78% compared to 69% during the same quarter in the last fiscal year.

Net income
Net income for the quarter was $1.98 million, or $6.82 cents per ADS, compared to a net income of $53,000, or $0.20 cents per ADS during the same quarter last fiscal year.

Registered users
The user base grew to 45 million as of June 30, 2006, a 20% increase over the number of registered users as of June 30, 2005.

India Online business
Revenues from India online advertising grew 68 per cent for the quarter ended June 30, 2006 compared to the same quarter in the prior fiscal year. Highlights:

1. The number of advertisers for the quarter ended June 30, 2006 stand at 165 brands, an increase of 24 per cent over the same period in the prior fiscal year.
2. Six industry categories accounted for 74% of advertising revenues for the quarter ended June 30, 2006: consumer financial services, employment, education, matrimonial, fast moving consumer goods (FMCG) and IT.
3. For the quarter, the top 10 advertisers contributed approximately 55% of advertising revenue for the India Online business, almost similar to the 53% during the same period in the prior fiscal year.

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