Earnings: Rediff Q2 Revenue Rises 18 Percent; Profits Drop 40 Percent on Higher Costs
Rediff.com has announced a Q2 revenue increase of 18 percent to $7.8 million from $6.6 million in the year-ago period. Net income went the other way, dropping 40 percent to $890K from $1.5 million, largely the result of higher operating expenses and depreciation/amortization. On a per ADS basis, earnings dropped to $.029 from $.05. The stock is currently off close to 8 percent, as revenues came in on the light side of Reuters consensus estimates. Some highlights:
– India Online revenues grew 22 percent to $5.73 million, as registered users grew 25 percent to 59.8 million. The company now has 190 advertisers, up from 160 in the year-ago period. Additionally, it has diversified its advertiser base, as the top 10 biggest advertisers now account for 45 percent of total ad revenue, down from 57 percent last year.
– US Publishing grew by 9 percent to $2.13 million from $1.95 million a year ago.
– Currency effects associated with the weak US dollar shaved $120,000 off the company’s bottom line.
Without Interest Income….. Again Rediff.com would have made a loss!!
They somehow sold their stock at a high price 7-8 years ago – and that is still saving them…. otherwise the BIGGEST internet portal of India would continue to make quarterly losses / hit panic button etc.
This is in sharp contrast to Naukri.com – which makes good profits….and has been growing.
Yes they key thing you missed out on highlighting is the fact that Rediff has turned in an operating loss. Net income of .89M, interest income of 1.4M, which means an operating loss of ~ 0.5M, which is terrible news. No one wonder their stock is getting hammered.
Still In INDIA online market is not Boom…It is intial stage on shopping side.
yes..Naukri.com – which makes good profits….and has been growing.
Due to what Type of SERVICE they provide to people.
Rediff.com one fo the best email provider in india. REDIFF And well know BRAND name compare to GOOGLE & YAHOO …
Rediff has long way to go. its not even in competition of google and yahoo. nor it has any global orientation. its just popular in India. That’s not at all going to help it anyway. <a href="http://www.blogsdna.com">BlogsDNA</a>
Hey guys i heared some big Giant going to take over rediff is this true ??<a >BlogsDNA</a>