Earnings Call Excerpt
Here’s the entire text of the prepared remarks from Rediff's (ticker: REDF) Q3 2005 conference call. The Q&A is in a separate article. We recognize that this transcript may contain inaccuracies - if you find any, please post a comment below and we’ll incorporate your corrections. And please note: this conference call transcript is a Seeking Alpha product, so feel free to link to it but reproduction is not permitted without the explicit permission of Seeking Alpha.
Executives:
Debash Gosh, Investor Relations and Public Affairs
Ajit Balakrishnan, Chairman and CEO
Joy Basu, Chief Financial Officer
[Debash Gosh, Investor Relations and Public Affairs]
Hello. Thank you Lara. Wish you all very good morning and thank you for being with us to discuss rediff.com’s financials for the First Quarter ended June 30, 2005. I would now like to introduce you to the management present on this call, who will take you through our company’s highlights. We have with us Mr. Ajit Balakrishnan, Chairman and CEO and Mr. Joy Basu our Chief Financial Officer. [Standard disclaimers omitted.] I would now like to introduce Mr.Ajit Balakrishnan our Chairman and CEO. Mr.Balakrishnan.
[Ajit Balakrishnan, Chairman and CEO]
Thank you Debash and Good morning to all of you. Our registered user base at 37.5 million users. At end of June 2005 showed an increase of 19% on a year-on-year basis. During the quarter ended June 30 2005, our revenues totaled $4.2 million an increase of 63% compared to the same quarter last fiscal. Revenues from India Online grew 114% to $2.7 million and revenues from US publishing increased 3% to $1.7 million. Gross margin during the quarter ended June 30 increased 68% compared to 54% for the same quarter last fiscal year. Net profit for the quarter was $63000 of $0.02 per ADS compared to a net loss of $506,000 or $0.02 per ads.
We at rediff.com continue to focus on our key strength as the company, which is product innovation, and I will briefly update you on the highlights of our recent efforts. First, we had launched a beta version of our automated news service called newshounds; this service has made headlines from 700 news sources with headlines updated every five minutes. Since the launch we have been continuously monitoring the service and we will keep you informed regarding future developments.
VOIP, Instant messenger which is also yet to work on low bandwidth condition for launch for commercial use earlier this month after several months of beta testing. We are encouraged by the initial user response and are monitoring its progress regularly. Our connection service is based on social networking technologies has been under beta testing for some time now. And currently has over 1 million testers of from all over India proving valuable insights. We expected we will be able to release this service on a wider scale soon and we believe, it will be particularly useful in searching the services that satisfy your unique individual needs, also in locating people with specific business interest.
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