Rediff.com India Ltd. (REDF), an online Internet based service provider, Friday reported a decline in its second-quarter profit, on lower margins and lower publishing revenues.
The company's second quarter net income dropped to $0.42 million or 1.42 cents per American Depository share or ADS, from prior year's net income of $0.89 million or 2.96 cents per ADS.
Total revenues for the quarter dropped 7% to $7.32 million from $7.86 million a year-ago. India Online revenues decreased marginally year-over-year to $5.62 million from $5.73 million while US Publishing revenues declined 20% to $1.70 million from $2.13 million in the same quarter of last year.
Gross margins for the quarter declined 14% to $5.56 million from $6.43 million in the preceding quarter. Gross margin as a percentage of revenue dropped to 76% from 82% last year.
Operating expenses increased 2% to $5.50 million from $5.39 million in the same period of last year.
The company's registered users as of now are 72 million, a monthly average growth of 8.6% over the previous quarter.
Looking ahead, Ajit Balakrishnan, Chairman and Chief Executive Officer Rediff.com India Ltd. said, "We continue to focus on building and launching relevant platforms and products for our users which we believe will help in maintaining our position as a leading online player."
REDF is currently trading at $2.53, down $0.03 or 1.17%, on the Nasdaq.
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