Web18 has posted a 7.3% rise in net loss of Rs. 85.89 million despite operating expenses reducing to Rs. 179.98 million compared to Q1 09. Revenues rose 7.9% to Rs. 142.1 million, while the company witnessed an 8 percent increase in operating revenue year on year, for the quarter ending 30th June 2009.
Interestingly, operating expenses have come down as well, by 4.03 percent. The company has reported a decline in operating losses by 32.30 percent. Year-on-year, depreciation for the company has more than doubled – from Rs. 17.57 million in Q1 of the 2008-09 fiscal, to Rs. 40.70 million in Q1 of 2009-10.
Please note that a quarter on quarter comparison for Web18 is not possible since the company did not release detailed financial results for Q4-09. Web18 is the Internet company of the Network18 group, and houses the consumer Internet properties of the Network18 Group, including In.com, Moneycontrol.com, IBNlive.com, CricketNext.com, Tech2.com, among others.
Expenditure And Losses Decline From Q3
Starting Q1-08 when the company had operating expenses of Rs. 116.99 million, Web18 saw a gradual an increase in spending, as the company launched new properties one after another, culminating with the launch of its flagship property In.com. Apart from a blip in Q1 last year, quarterly expenses rose to a maximum of Rs. 349 in Q3-09, while losses reached a peak of Rs. 247.14 in Q2-09.
Web18 has now said that its flagship website In.com has completed its launch and investment phase, and hopefully for the company, this will mean a further reduction in expenditure, and possibly a road back to profitability.
This first quarter of the 2009-10 fiscal has seen a significant decline in expenditure from the peak of Q3-09 (Q4 numbers are not known), as well as the lowest disclosed loss over the last six quarters. Operating Revenues, it must be noted, have also declined over Q3. In.com, the company claims, currently holds the #2 position among Indian portals. Rediff is believed to be
Quoting Comscore data, the company has said their number of unique visitors for Web18 properties grew by 66% year on year, which it suggests pulls it ahead of competitors Rediff and Sify – in terms of growth. Keep in mind that there is little clarity on ComScore’s methodology for India.