Rediff India (Nasdaq: REDF) posted a profit of $6.99 million or 24.04 cents per share for the fiscal year ending March 31, 2007, up from the $1.21 million profit (4.50 cents per share) posted last year. In Q4, the company earned $2.00 million, or 6.89 cents per share, up from $0.53 million or 1.96 cents per share for the corresponding quarter in 2006.
Rediff recorded $28.68 million in revenue for the fiscal year ending March 31, 2007, up 53 percent year-on-year (YoY), with Q4 being by far the best quarter for the company – accounting for $8.48 million, up 66 percent YoY. US Publishing (India Abroad) revenues were at $7.92 million, up 21 percent from 2005-06. Gross Margins increased to 81 percent for the year, compared to 73 percent for the previous year. Operating EBITDA totaled $5.93 million, increasing by 147 percent YoY. However, the company’s operating expenses increased by 54% to US$17.33 million due to higher advertising and product development costs, as well as an additional cost on account of stock-based compensation, amounting to US$1.23 million.
India Online: A bulk of Rediff’s revenue growth came from from India, and revenues from this segment totaled $20.76 million, up 71 percent YoY. Advertising revenue grew by 92 percent. Q4 accounted for $6.3 million of this, up 76 percent YoY. The number of companies advertising on Rediff increased by 13 percent to around 177. However, Rediff’s dependency on its top 10 advertisers increased – they accounted for around 55 percent of the company’s advertising revenue, as opposed to 49 percent in the previous fiscal. Employment, matrimonial, finance, travel and IT products were the top 5 categories, accounting for 61 percent of the ad revenue. Rediff’s registered user base grew to 53.6 million, up 25 percent over the same quarter last year.
Release | Financials