Turned Profitable in Q2 (REDF)

Aug.29.05 | About: India (REDF)

Indian Internet portal (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.

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