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EXHIBIT 99.1
THURSDAY OCTOBER 12, 7:59 AM EASTERN TIME
PRESS RELEASE
SOURCE: Rediff.com India Limited
REDIFF.COM REPORTS 53% REVENUE GROWTH AND 39% DECREASE IN LOSS PER ADS FOR THE
SECOND FISCAL QUARTER
MUMBAI, India, Oct. 12/PRNewswire/-- Rediff.com India
Limited (Nasdaq: REDF - news), one of India's leading Internet portals focussing
on India and the global Indian community, today announced its financial results
for the quarter ended September 30, 2000.
HIGHLIGHTS
- Net revenues increased by 53 percent compared to quarter ended June 30,
2000.
- Gross margins improved to 65 percent
- Loss per ADS decreased by 39 percent over previous quarter to US$0.082
- Rediffmail subscribers increased over 100 percent to a record 2.1
million as of September 30, 2000
- Page views for the month of September were 158 million, a 46 percent
increase over June 2000.
- Rediff.com signed WAP agreements with leading cellular operators Birla
-AT&T-Tata Cellular and Spice Cell
"I am pleased to report that the Company continues to successfully execute on
its business plan and attain key operating and financial milestones. Our
achievements on all key parameters of the business have been extremely
encouraging," said Ajit Balakrishnan, Chairman and Chief Executive Officer,
Rediff.com India Limited. "Strong revenue growth, robust increase in traffic and
registered users and a definitive reduction in loss demonstrates that the
fundamentals of the Company remain strong," concluded Ajit Balakrishnan.
Financial Results
Rediff.com net revenues for the quarter ended September 2000 increased to US$
1.34 million, representing an increase of 53 percent over the quarter ended June
30, 2000 and 306 percent over the corresponding quarter of 1999.
Rediff.com Marketplace revenues accounted for 7 percent of net revenues, an
increase from 5.8 percent of net revenues in the previous quarter. In absolute
terms, Marketplace revenues grew by 86 percent over the previous quarter ended
June 30, 2000.
Page views for the month of September were 158 million representing a growth of
46 percent over June 2000. Page views increased to a record 396 million for the
quarter ended September
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2000, a 465 percent increase over the same quarter in 1999. Registered e-mail
users grew to 2.1 million representing over a 100 percent increase from the
previous quarter. This growth was achieved primarily on strong brand values and
product features coupled with the ability to scale technology quickly and
efficiently.
Net revenues per 1000 page views at US$3.37, reflect a consistent monetization
of the traffic.
Gross margins improved to over 65 percent from 61 percent for the previous
quarter as the company continued to scale up the business model. Expenses in
Sales & Marketing and Product Development were maintained at previous quarter
levels. General & Administrative expenses were higher than previous quarters, on
account of expenses arising as a result of being listed.
Net loss per ADS (after interest income but before foreign exchange gains)
decreased 39% percent to US$0.082 from US$0.134 in the previous quarter. Net
loss improved to US$0.11 million compared to the net loss of US$ 2.87 million
for the previous quarter.
Additional Highlights
Rediff.com Marketplace
The company continued to extend its strategy to help global brands sell their
products and services online at the Rediff.com Marketplace by signing multiple
agreements with leading international brands - National Panasonic, Electrolux
and General Motors. Nike was among the early brands to be part of Marketplace
and continues to sell its products online.
Distribution
To further increase Rediff.com's distribution network through wireless
application protocol (WAP), the company signed agreements with Birla AT&T - Tata
Cellular and Spice Cell for the high density circles, in the Indian states of
Andhra Pradesh, Goa, Maharashtra, Karnataka and the city of Calcutta. Orange
continues to provide its users access to Rediff.com content through the
RediffMobile edition for the Indian cities of Mumbai and Delhi.
The company also signed an agreement with BSES Telecom to provide Rediff.com
content and services to BSES Telecom subscribers in Mumbai, India. BSES Telecom
is one of the first ISP's to provide broadband Internet services to consumers in
India. Rediff.com also has agreements with several other ISP's to provide
similar services to their respective subscribers.
Strategic Alliances/Sponsorships
In September, Rediff.com entered into a strategic partnership with ICICI
Limited, one of India's leading financial intermediary, to provide exclusive
content and services to its users in the categories of travel and bill payment.
Separately, Rediff.com integrated FootForward.com, a women's portal, into its
fold.
Also in September, Rediff.com launched its Olympics channel to provide users
with detailed coverage on the Olympics. The channel was sponsored by
international brands including Xerox, Panasonic, Ericsson, Electrolux, Alliance
Capital, Castrol and other leading companies.
About Rediff.com
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Founded in 1996, Rediff.com India Limited is one of the leading Internet
portals, focussing on India and the global Indian community. Currently,
Rediff.com's web site consists of interest specific channels, extensive
community features, local language editions, sophisticated search capabilities
and online shopping. Rediff.com also provides users extensive Internet community
offerings, which include e-mail, chat, instant messaging and personal homepages,
all tailored to Indian interests. Rediff.com has developed its offerings based
on the demands and the requirements of its users. The company also has a U.S.
edition of its site, with content relevant to the Indian community in the United
States.
Except for historical information and discussions contained herein, statements
included in this release may constitute "forward-looking statements." These
statements involve a number of risks, uncertainties and other factors that could
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 competition, acquisitions, attracting, recruiting and retaining
highly skilled employees, technology, legal and regulatory policy, managing
risks associated with consumer transactions, widespread adoption of the
internet, as well as other risks detailed in the reports filed by Rediff.com
India Limited with the U.S. Securities and Exchange Commission. Rediff.com India
Limited undertakes no obligation to update forward-looking statements to reflect
events or circumstances after the date thereof.
SUMMARY OF OPERATIONS
(US$ million)
<TABLE>
<CAPTION>
Quarter Ended
Sept 30, '00 June 30, '00 Sept 30, '99
<S> <C> <C> <C>
Net Revenues 1.34 0.87 0.33
Gross Margin 0.87 0.53 0.20
Gross Margin % 65% 61% 61%
Selling & Marketing (2.32) (2.36) (0.28)
Product Development (0.52) (0.47) (0.15)
General & administrative (0.83) (0.60) (0.29)
Total Operating Expenses (3.68) (3.43) (0.72)
EBITDA (2.80) (2.90) (0.52)
Depreciation/Amortization (0.25) (0.19) (0.03)
EBIT (3.05) (3.09) (0.55)
Interest Income 0.95 0.22 0.00
Net Loss before
Foreign Exchange gain (2.09) (2.87) (0.55)
Foreign Exchange Gain 1.99 0.00 0.00
Loss before tax (0.10) (2.87) (0.55)
Tax (0.01) 0.00 0.00
</TABLE>
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<TABLE>
<S> <C> <C> <C>
Loss after tax (0.11) (2.87) (0.55)
EBIT Per ADS (0.119) (0.144)
Net Loss before
Foreign Exchange gain Per ADS (0.082) (0.134)
</TABLE>
Note:
The above net revenues have been restated for the prior periods as applicable.
The new Rediff.com Marketplace is a low touch model where the Company assumes no
inventory risk. Consistent with this model we have disclosed Marketplace
revenues on a net basis, i.e. net of cost of goods sold.
SOURCE: Rediff.com India Limited
