Updated with graphs and numbers from corporate presentations
Though the December quarter was expected to be a weak one for Info Edge India, the company behind Naukri.com, the company has posted sequential growth in net profits and revenues, which are up 6.7 percent and 6.2 percent respectively. Net profits are 9.1 percent lower that that recorded in December 2008 at Rs. 156.45 million and net sales marginally lower at Rs. 588.75 million.
Other income has significantly reduced from Rs. 83.5 million recorded in the September 2009 quarter to Rs. 0.114 million this quarter. Operating EBITDA increased by 20% year on year to Rs. 179.42 million.
Info Edge also owns websites Jeevansathi, 99 acres, Shiksha, Brijj, AskNaukri, FirstNaukri and Allcheckdeals.
Job Portals Net Sales Marginally Up YoY
The flagship portal and other job portals by Naukri registered total net sales of Rs. 500 million in the quarter ended December 2009, up 0.4% from December 2008. They now contributes84.9% to the company’s revenues.
Naukri’s EBITDA margin has fallen to 44.05% in the December quarter compared to 45.8% in the corresponding quarter last year. In the September quarter, this was at 36.9%. The number of resumes added on a daily basis to the site has fallen from 14 million in December 2008 quarter to 10 million in the December 2009 quarter.
Update: Jobspeak, the index of job listings added on Naukri.com, has suffered an abrupt fall to 713 in December 2009 from 750 in November 2009. The number of job listings was at 729 in September 09. Note that Jobspeakindicates the demand for the site but has no direct revenue implications.
Expenditure Falls YoY
Employee costs are still lower compared to the Rs. 234 million recorded in December 2008. Last quarter, Info Edge had increased its spend on advertising and promotions, but this has been controlled in the December quarter at Rs. 87 million compared to the Rs. 98.45 million registered in the September 2009 quarter.
The company continues to invest in its sales force and portals. It has not made any new investments in the quarter in Applect, which has launched Meritnation. It invested Rs. 15 million in Etechaces (Policybazaar.com) in the quarter.
The company has 52 offices in 34 cities in India, two in Dubai and 1 each in Bahrain & Riyadh. The company admits that its NaukriGulf business will take longer to revive due to the slowdown.
99Acres, Jeevansathi & Others
The company’s other verticals, which is primarily 99acres.com and Jeevansathi.com but also includes Brijj and Shiksha, incurred a EBITDA loss of Rs. 38.12 million in the quarter when compared to Rs. 49.44 million for December 2008 and Rs. 33 million in the September quarter. Revenues for Jeevansathi.com and Shiksha.com grew 13.6% and 92% respectively.
Update: Net sales from Infoedge’s “other verticals” segment fell 2.7 percent year on year to Rs. 89 million. They contribute to 15.1 percent of the company’s revenues, down from 15.5 percent in December 2008. Note: Allcheckdeals.com is not included under this segment anymore as it is now a subsidiary of the company.
Jeevansathi, the company projects, may break even by the end of FY09. The matrimonial site had 3.5 million profiles registered, up from 2.7 million in December 2008. The site revamp has been completed and the company is now tapping the non-resident Indian (NRI) market. There are now 14 offline centres – Jeevansathi Match Points – in six cities.
Shiksha has aggregated 110,000 listings as of February, 2010 and has offices in 11 cities.
Brijj has 2 million registrations.
Real Estate Recovery
Update: The real estate market, according to a recent investor presentation, has witnessed increased traction in the quarter especially in the economy housing segment after the credit squeeze that left it hung. 99acres.com, the company’s real estate portal which has competition from Consim Info’s Indiaproperty.com, Times of India Group’s MagicBricks, and People Interactive Group’s Makaan.com, has experienced an 8.6% sequential growth in revenues. The portal rejigged its display of search results and improved its site’s search engine optimisation.