Northgate Reports Q2 Profit Of Rs. 22.4 Crores; Bharatstudent FY08 Loss At Rs. 3.96 Crores

Northgate Technologies, which owns the social networking site Bharatstudent.com, Online Advertising network Axill, and VoIP and IPTV solutions provider Globe7, has reported a consolidated profit 22.40 crores, up marginally from Rs. 22.43 crores last quarter, and Rs. 20.21 crores for the Q2 last year. Northgate Technologies, by itself, contributed only Rs. 3.6 crores, down from Rs. 6 crores last quarter. Consolidated revenues for the group were up at Rs. 189.37 crores. A majority of the groups business revolves around Online Advertising, and there’s been a “Traffic Acquisition Cost” of Rs. 102.14 crores, down from Rs. 107.05 crores last quarter.

The consolidated results include digital subsidiaries of Northgate – Social Media India Ltd, which runs Bharatstudent.com, Northgate Investments Pte Ltd and its subsidiaries Globe7 Pte Ltd, Globe7 Inc, Axill Europe Ltd and Globe7 HK Ltd.

We also went through their annual results, in particular, seeking more information on the performance of their subsidiary Social Media India Ltd, which runs the social networking site Bharatstudent.com. This are rather bleak there –

For the year ending March 31st 2008, Social Media India reported revenues of Rs. 9.85 crores, and a net loss of Rs. 3.96 crores. All in all, Northgates Online Media Properties’ (OMP) contributed 18% to the total revenue, and were at Rs.100.21 crores, with an EBITDA margin of 13.4% in FY’08, down from 27.3% in FY’07. Northgate launched Ziddu and Egglad in FY08, and saw an increase in marketing and promotion activities.

Q209: Financials,
Q109: Financials, Analysis/Report
FY08: Annual Report