Rediff.com India Ltd, one of the leading online providers of news, information, communication, entertainment and shopping services for Indians, has announced its financial results for the fourth fiscal quarter and year ended March 31, 2006.
Rediff’s revenue for the quarter ended March 31, 2006 stood at $5.11 million, an increase of 48 per cent over revenues from the quarter ended March 31, 2005.
Gross margins of the company increased to 76 per cent for the quarter, compared to 62 per cent for the quarter ended March 31, 2005. Net income for the quarter was $0.53 million or 1.96 cents per ADS, compared to a net loss of $0.24 million or 0.92 cents per ADS for the quarter ended March 31, 2005.
Revenues for the fiscal year ended March 31, 2006 grew by 48 per cent to $18.70 million compared to revenues during the prior fiscal year. Net income for the fiscal year ended March 31, 2006 was $1.21 million, or 4.50 cents per ADS, compared to a net loss of $1.43 million, or 5.56 cents per ADS, for the prior fiscal year.
Registered users as of March 31, 2006 numbered 43.05 million, a 20 per cent increase compared to the number of registered users as of March 31, 2005.
The growth driver in the Indian online business, and consequently for the whole company, is online advertising and this portion grew 88 per cent for the quarter ended March 31, 2006 compared to the same quarter in the prior fiscal year.
The number of advertisers on the company’s site as of the quarter ended March 31, 2006 totaled 156 brands, up 41 per cent on a year-on-year basis.
Six industry categories – consumer financial services, employment, education, matrimonial, FMCG and IT – accounted for 79 per cent of advertising on Rediff during the quarter ended March 31, 2006.
“Our successes in the future will depend on our ability to create and market world class products with strong local relevance and high utility value. As our range of products and services grow along with the user base, it has become imperative to promote our key services such as mail, messenger and search. We are aggressively building the Rediff.com brand through advertising and PR,” said Ajit Balakrishnan, Chairman and CEO, Rediff.com India Ltd. “We will continue to invest in brand building over the next few quarters,” he added.
Total operating expenses for the quarter ended March 31, 2006 were $3.17 million, compared to $2.31 million for the same quarter last fiscal year. Expenses were higher primarily due to advertising and higher product development costs. For the full fiscal year 2006, total operating expenses stood at $11.26 million, compared to $8.62 million in fiscal 2005.