Rediff.com Turned Profitable in Q2 (REDF)

Indian Internet portal Rediff.com (ticker: REDF) announced results for the quarter ended June 30th 2005 on July 28th. Here are key stats from the quarter; note the proportion of revenue from the US print publication business, which grew by only 3% year-over-year:

Q2 Results
(Note: all percentages are year-over-year unless stated otherwise)

• Revenues up 53% to US$4.2 million.
• Revenue breakdown: revenues from India Online, which comprises online advertising and fee-based services, up 114% to US$2.7 million."primarily due to growth in online advertising services and mobile services". Revenues from US Publishing up 3% to US$1.53 million. Note that US Publishing is comprised mainly of India Abroad, a weekly news print publication, as well as Rediff USA online.
• Gross margin was 68% (total dollars: US$2.9 million), up from 54%.
• Operating expenses up 40% to US$2.7 million "primarily due to higher advertising and product development costs".
• Net income was US$53,000, or 0.2 cents per ADS, versus a net loss of US$506,000, or 2 cents per ADS. Results in the equivalent quarter in 2004 included a loss of US$150,000 from discontinued operations due to the sale of the ValuCom phone card business in early April 2004.
• Balance sheet: Total cash and cash equivalents and short term deposits with banks was approximately US$9.4 million as of June 30, 2005.
• Headcount at end June: 253
• Advertisers during the quarter: 122

Full press release here.

Not subscribed to this blog? You can get updated headlines for free by adding any of the Seeking Alpha Network Blogs to your My Yahoo page. Just log into your My Yahoo page, then go to this blog and click on the "+ My Yahoo" button on the top right of your screen.