Earnings: Rediff Makes $6.99 Million Profit; Revenue At $28.68 Million

5 Comments

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

5 Comments

Arun

The Indian online business has improved from $12 mn to $20 million, around 64% increase. And it is true that of the $7 mn profits, $3.7 is interest income.

Johnny Cash

What the hell are you talking about? Revenue is doubling every year in the Indian online business. You are talking out of your fat ass.

LOL

Santosh Ghosh

Its a great way of looking at it Kumar. Thanks for this critical analysis.

I totally agree with Kumar on this

Cheers

Santosh

Kumar A

50% of the net profit is from interest income….. based on the large cash reserves left over from IPO. (since they were loss making till even 6 quarters ago)

So while they are making more revenues – its not like they are exploding with growth like the China internet portals.

….players like Naukri seem to be doing far better than Rediff.com in terms of internet revenues.

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