Rediff.com India Ltd. (REDF)
F2Q07 Earnings Call
November 1, 2007 8:30 am ET
Deb Saha - Investor Relations Contact
Ajit Balakrishnan- Chairman and Chief Executive Officer
Joy Basu - Chief Financial Officer
Ashish Thadani - Gilford Securities
Amit Debas - Analyst
Gilda Battista - Analyst
Gaurav - Volkswagen
Narendra - Analyst
Previous Statements by REDF
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After the call, we will conduct a question-and-answer session and instructions will follow at that time (Operator Instructions). As a reminder, this conference is being recorded.
I would like to introduce you to your host for the conference, Mr. Deb Saha, Investor Relations Contact, Rediff.com India Limited.
Thank you Michelle. Wish you all a very good morning and thank you for being with us to discuss Rediff.com's financials for the second quarter ended September 30, 2007. I would like to introduce you to the members of management present on this call, who will take you through the highlights of our Company's performance.
We have with us Mr. Ajit Balakrishnan, Chairman and CEO, and Mr. Joy Basu, our CFO. As mentioned earlier, all of you are currently on a listen mode only. This conference call will last for about 20 minutes and then we'll be glad to answer any questions you may have.
For your immediate and ready reference, we have also posted the earnings release for the second quarter ended September 30th, 2007 on our website at investor.rediff.com. You may also call me at our office in India at 91-22-2444-9144, extension 202, and we will be glad to fax or email you a copy during the course of this call.
Before proceeding, I would like to mention that during this conference call, except for the historical information and discussions contained herein, statements may constitute forward-looking statements for the purposes of the Safe Harbor provisions and under the Private Securities Litigation Reform Act of 1995.
These statements involve a number of risks, uncertainties and other factors that can cause actual results to differ materially from those that may be projected by these forward-looking statements.
These risks and uncertainties include, but are not limited to, a slowdown in the economies worldwide and in the sectors in which our clients are based, a slowdown in the Internet and IT sectors worldwide, competition, the success or failure of our past and future acquisitions, attracting, recruiting and retaining highly skilled employees, technology, legal and regulatory policies, managing risks associated with customer products, the widespread acceptance of the Internet, as well as other risks detailed in the latest annual report on Form 20-F, filed by Rediff.com with the SEC.
Rediff.com and its subsidiaries may from time to time make additional written and oral forward-looking statements, including statements contained in the Company's filings with the SEC and our reports to shareholders.
Rediff.com and its subsidiaries do not undertake any obligation to update any forward-looking statements that may be made from time to time, by or on their behalf. These reports are available with the SEC or are available upon request by emailing Rediff.com at email@example.com.
Now, I would now like to introduce Ajit Balakrishnan, our Chairman and CEO.
Thank you, Deb, and good morning to all present. To begin, I'd like to share major highlights of the environment in which we operate. The Indian economy started well in the new financial year 2007/2008.
According to the Indian Central Statistical Organization, the Indian economy grew during the first quarter of financial year 2007/2008, with a real GDP growth of 9.3% compared to the same quarter in the previous fiscal year.
The Indian PC market according to IDC, International Data Corporation, an independent market research company, grew 22% in terms of sales volume during the quarter ended June 2007 as compared to the same quarter last year.
The Indian mobile subscriber base according to the Telecom Regulatory Authority of India grew $209 million, grew to $209 million as of September 30, 2007, representing a 61% increase compared to the same date last year.
Our own registered user base grew to 59.8 million users at end September 2007, which was a 25% increase compared to the same date last year.
Our revenues totaled $7.1 million for the quarter ended September 30, an increase of 18% compared to the same quarter last fiscal year, with India Online revenues increasing by 22% to $5.73 million and U.S. publishing revenues increasing by 9% to $2.13 million.
Within the India Online business segment, advertising revenues totaled $4.26 million for the quarter ended September, an increase of 18% compared to the same quarter last fiscal year. Fee-based revenues totaled $1.47 million, an increase of 35% compared to the same quarter last fiscal year.
The highlights of our India Online advertising business are as follows. The number of companies advertising on our website for the quarter ended September 30 totaled 190, as compared to approximately 160 during the same quarter in the prior financial year.
The following five industry categories accounted for 56% of our revenue. Consumer finance, employment, travel, matrimonial and insurance. For the quarter ended September 30, the top 10 advertisers contributed 45% of advertising revenue for the India Online advertising business, compared to 57% during the same period in the prior fiscal year.