Revenues for Web18, the Internet and Mobile arm of Network18, grew 4.85 percent year-on-year and 12.65 percent sequentially for the quarter ended September 30th 2009. The growth in revenues, coupled with a 38.26 percent year on year reduction in operating expenses helped the company report a 72.93 percent reduction in operating loss. Sequentially, however, Web18s operating expenses rose Rs. 31.47 million (by 17.49%) to Rs. 211.45 million, hence a 35.61 percent sequential increase operating loss. During the Quarter, Web18 received an approval to raise $10 million in strategic investment from Nokia Growth Partners.
Overall, the company claims to have cut down operating losses from Rs. 175-190 million per quarter last year, but keep in mind that last year, the company was in investment mode. Perhaps it still is – Operating Expenses were 1.32 times Revenues for July-September 2009, as compared to 1.266 times March-June 2009, but still an improvement over 2.24 times for the corresponding (July-September 2008) period last year.
Sep-09 Details: Financial Release
For the first time in recent memory, Web18 has shared data related to MoneyControl.com:
– MoneyControl claims a registered database of over 2 million members, which it claims is the highest in the country. Of these, around 1.2 million use its Portfolio services. Web18 has not shared its Active registered base, which is far more relevant a metric than ‘registered users’.
– It claims that it gets 2.25 million visits every month (according to Google Analytics data), which is ahead of Rediff Finance and Yahoo Finance
– Users at MoneyControl apparently spend 23 minutes per visit, as opposed to an Indian average of 4-5 minutes per visit. (Editor: This must largely be due to brokers sitting with portfolio pages open during market hours)
– Moneycontrol claims that 85% of those using its Portfolio tracking service have investments of more than Rs. 300,000.
– 85% of Moneycontrols 1.2 million Portfolio users have investments worth more than INR 300000.
During the quarter, Web18 also launched a personal finance tool in association with Intuit Inc.
In.com, probably Web18′s biggest investment over the past couple of years, claims to be the number 2 in India, as per Comscore ratings, behind Rediff.com. MediaNama doesn’t endorse Comscore, since they haven’t disclosed their methodology for India. In association with GECOM International, Web18 launched Myschool.in.com, which aims to connect all key school stakeholders through a real time, virtual community. Web18 claims that MySchool.in.com attracted over 50,000 registrations within 2 months of launch across 68 cities in India, and the first anchor client of Myschool.in.com was the Ryan International Group of Institutions.
During the quarter, Web18 integrated the IBNLive Fan Club on each story page on the site, in an alliance with Facebook, according to the company. During the quarter, the fan club increased from 1600 to 9000 by Sep-09 end. Web18 claims that IBNLive received over 250,000 clicks from Facebook, and an incremental 1 million page views due to this initiative.
Web18 is planning to launch Moneycontrol financial services on the IVR platform. Web18 CEO Surya Mantha had mentioned voice portal related plans to MediaNama recently.
Web18 delivered web services including website development for noteworthy clients & initiatives such as Mastek (for their multiple geographies), Religare Insurance, Fear Factor2: KKK (MTV), Dale Carnegie, Delhi Public School.