Riding on a boom in Indian online busness, Rediff.com India Ltd (Nasdaq, REDF.O) has announced a 54 per cent growth in revenues in the third quarter ended December 31, 2006. The revenues stood at $7.75 million, 54 per cent higher than the corresponding quarter the previous year.
What drove the growth? India online revenues for the quarter grew by 80 per cent to $5.69 million vis-a-vis the same quarter last year. Compared to this, the US publishing revenues increased only by 11 per cent to $2.06 million.
Net income was $1.51 million, or 5.20 cents per ADS, compared to a net income of $0.32 million, or 1.23 cents per ADS, the same quarter ended December 31, 2005. Gross margins increased to 82 per cent, compared to 75 per cent in Q3 last year. Operating EBITDA increased to $1.82 million as compared to $0.96 million last year.
Other highlights
— Registered users grew to 50.66 million, a 23% increase over the number of registered users as of December 31, 2005
–Revenues from the India online advertising business grew by 103 per cent
— The number of companies advertising on Rediff’s website numbered 163, an increase of 7 per cent.
— The following industry categories accounted for 70 per cent of the advertising revenues: Employment, Finance, Online Shopping, Matrimonial, IT products and Travel.
— The top 10 advertisers contributed approximately 62 per cent of advertising revenue for the India Online business, compared to 50% during the same period in the prior fiscal year.
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