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EXHIBIT 99.1
REDIFF.COM REPORTS 31% REVENUE GROWTH AND 24% DECREASE IN LOSS
PER ADS FOR THE THIRD FISCAL QUARTER
MUMBAI, INDIA, JANUARY 17, 2001-- Rediff.com India Limited (Nasdaq: REDF), one
of India's leading Internet portals focusing on India and the global Indian
community, today announced its financial results for the quarter ended December
31, 2000.
HIGHLIGHTS
o Net revenues increased by 31 percent to US$1.75 million compared to quarter
ended September 30, 2000.
o Gross margins maintained at 65 percent.
o Loss per ADS decreased by 24 percent over previous quarter to US$0.062.
o Rediffmail subscribers increased 94 percent to record 4.08 million as of
December 31, 2000.
o Page views for quarter ended December 31, 2000 was 670 million, an increase
of 69 percent over last quarter.
o Rediff.com signed multiple agreements with leading national and
international brands, such as Compaq, Bharat Petroleum, Aptech, and HMV to
sell their products and services at the Rediff.com Marketplace platform.
o Rediff.com launched its news content and community services for Palm users
worldwide.
o Rediff.com launched its U.S. operations, with a dedicated management team,
by entering into an agreement to acquire U.S.-based portal, ThinkIndia.com,
Inc.
"It is a pleasure to report that despite volatile market conditions, the Company
continues to execute its business plan across all the key operating and
financial metrics of the business. The robust growth in our traffic reinforces
our leadership position as the preferred portal among Indians in India and
worldwide," said Ajit Balakrishnan, Chairman and Chief Executive Officer,
Rediff.com India Limited.
"Strong revenue growth, healthy gross margins and a further reduction in loss
per share, validate our commitment to reach profitability in a measured time
frame," concluded Ajit Balakrishnan.
FINANCIAL RESULTS
Rediff.com net revenues for the quarter ended December 2000 increased to US$
1.75 million, representing an increase of 31 percent over the quarter ended
September 30, 2000 and an increase of 372 percent over the corresponding quarter
of 1999. Advertising revenues contributed 90.6 percent of total net revenues
with an average effective CPM of US$16.
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Rediff.com Marketplace revenues accounted for 9.4 percent of net revenues, an
increase from 7 percent of net revenues in the previous quarter. In absolute
terms, Marketplace revenues grew by 73 percent over the previous quarter ended
September 30, 2000.
Page views for the month of December were 258 million, representing a growth of
63 percent over September 2000. Page views increased to a record 670 million for
the quarter ended December 2000, a 69 percent increase over last quarter and a
520 percent increase over the same quarter in 1999. Registered e-mail users grew
to 4.08 million, representing a 94 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 1,000 page views were US$2.62.
Gross margins were maintained at 65 percent. Total operating expenses including
Sales & Marketing, Product Development, General & Administrative were lower than
previous quarter levels, at US$3.52 million, after accounting for U.S.
integration costs.
Net loss per ADS (after interest income but before foreign exchange gains)
decreased 24 percent to US$0.062 from US$0.082 in the previous quarter.
After accounting for foreign exchange gains and providing for taxation, net loss
stood at US$0.82 million for the quarter ended December 31, 2000 compared to
$2.59 million for the same quarter last year.
ADDITIONAL HIGHLIGHTS
Rediff.com USA
Rediff.com launched its US operations with a dedicated management team by
entering into an agreement to acquire ThinkIndia.com, a privately held
U.S.-based portal focusing on Indians in the United States. In keeping with the
Company's vision to provide culturally relevant content and services to its
users worldwide, the US edition of the site was re-launched by customizing the
content and product offerings for the Indian community in the United States.
New Product launches and Re-launches
In December, Rediff.com re-launched it's site, integrating a simpler navigation
process in addition to updating the look of the site, in an effort to increase
the value of its service offerings to its users. Rediff.com remains focused on
evolving its various products and services, per consumer needs.
Rediff.com enhanced the features of two of its most popular services: Rediff
Search and Rediffmail. Rediffmail can now be accessed through WAP enabled
cellular phones and be mailed in eleven different regional languages. Rediff.com
launched its news service and community offerings to Palm users worldwide.
During the year, Rediff.com had increased the distribution network of its news
content, product and service offerings by partnering with multiple ISPs and
leading cellular operators across the country. The Company continues to
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strengthen the relationship with each one of its partners by providing
additional services to their subscriber base.
Rediff.com Marketplace
Rediff.com continued to extend its strategy to help global as well as national
Indian brands sell their products and services online at the Rediff.com
marketplace by signing multiple agreements with leading international computer
company Compaq and a host of national brands, such as Aptech, HamaraCD and
Bharat Petroleum.
Strategic Alliances
Rediff.com entered into a strategic partnership with PlanetSaffron.com, to
provide content and services to its users in the categories of traditional
Indian healing therapies, yoga, art and fashion. This is consistent with the
Company's strategy to partner with specialized companies providing interest
specific content and services.
ABOUT REDIFF.COM
Founded in 1996, Rediff.com India Limited is one of the leading Internet portals
focusing 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 may, from time to time, make additional written and oral forward looking
statements, including statements contained in the company's filings with the
Securities and Exchange Commission and our reports to shareholders. Rediff.com
India Limited does not undertake to update any forward-looking statement that
may be made from time to time by or on behalf of the company.
Company Contact: Investor Relations Contact:
Debasis Ghosh Sandra Moreno
Rediff.com India Limited Thomson Financial/Carson
[email protected] [email protected]
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+91-22-444-9144 +1-212-701-1867
-tables to follow-
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SUMMARY OF OPERATIONS
(US$ MILLION)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
QUARTER ENDED
DEC-00 SEP-00 DEC-99
--------------------------------------------------------------------------------
<S> <C> <C> <C>
NET REVENUE 1.75 1.34 0.37
Gross Margin 1.14 0.87 0.23
GROSS MARGIN % 65% 65% 61%
Selling & Marketing (1.82) (2.32) (2.18)
Product Development (0.78) (0.52) (0.21)
General & administrative (0.91) (0.83) (0.37)
TOTAL OPERATING EXPENSES (3.52) (3.68) (2.76)
EBITDA (2.38) (2.80) (2.53)
Depreciation/Amortization (0.26) (0.25) (0.06)
EBIT (2.64) (3.05) (2.59)
Interest Income 1.06 0.95 0.00
EBT (1.58) (2.09) (2.59)
Foreign Exchange Gain 0.77 1.99 0.00
PBT (0.81) (0.10) (2.59)
Tax (0.01) (0.01) 0.00
--------------------------------------------------------------------------------
PAT (0.82) (0.11) (2.59)
--------------------------------------------------------------------------------
EBIT PER ADS (0.103) (0.119)
EBT PER ADS (0.062) (0.082)
--------------------------------------------------------------------------------
</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.
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