Rediff.com India Limited (Nasdaq: REDF), India’s number one internet portal, reported its Q1 numbers on Thursday July 20th, 2006. Investor’s applauded the numbers and sent the stock up almost 17%.
Let’s look at the highlights of the quarter:
Revenues for the quarter ended June 30, 2006 were US$5.78 million – 37% YoY increase. (Rediff didn’t provide QoQ numbers and I am not sure I can use last quarter’s number due to the foreign exchange fluctuation)
Portal Revenue: $4.06 million – 52% YoY increase – Good growth but Sify’s (Nasdaq: SIFY), closest competitor, portal revenues grew by 96%. However, Rediff is India’s leading internet portal and its portal revenues are almost three times as much as Sify’s.
US Publishing revenues: US$1.72 million – 12% YoY – This includes publishing a newspaper for the Indian community in the United States.
Gross Margins increased to 78% for the quarter, compared to 69% for the quarter ended June 30, 2005.
Net Income was US$1.98 million compared with US$53,000 YoY
Registered users grew by 20%, same as they did last quarter, to 45 million.
Top 10 advertisers= 55% of advertising revenue. This metric increased by 2% YoY.
New Services:
- Launched a beta version of its popular web-based mail service with new features that provides users an experience akin to the Outlook desktop client
- Launched a new home page with Web 2.0 features
- Rediff Classifieds had 149 categories of ads and more than 130,000 listings.
All in all Rediff had a good quarter. The stock is currently back to earth from its earlier highs of mid 30s but still has a market cap of $380 Million and PE of 128.27.
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