For the quarter ended September 2009, NASDAQ listed Rediff.com (REDF) has reported net losses of $ 2.61 million compared to losses of 0.42 million in the quarter ended September 2008. Its user base stood at 83 million at the end of the September 2009, a 15% increase year on year.
The sweeping of advertisements from the company’s portal Rediff.com, as part of its revamp, led to the 15.5% drop in total revenues on a sequential basis, taking it to $ 4.19 million. Revenues from India Online fell 22% sequentially to $3.08 million. In Q2 last year, this was at $5.62 million.
Steps of user experience improvements, social enabling and heightened brand profiling are expected to significantly improve Rediff’s share of unique users in India, which in turn will translate to higher revenue and profitability over the next few quarters.
In line with the company’s guidance, operating expenses rose 2.9% to $5.03 million and will continue to increase: the company repeated its intention to continue to invest over the next few quarters.
Details: Release
Rediff plans to continue its investment in product development and brand building post the adoption of a RESTful architecture and the common data model across all their services.
Revenues from its US business increased by 9% sequentially. Operating EBITDA slipped further into negative to -$2.61 million compared to a positive EBITDA of $0.06 million in Sep 08.
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13 Comments until now.
very shocking results. for some time one thought this may be a passing phase but this is looking like more of a black hole. there is continuous fall in revenues while the likes of google and web18 are registering growth in the same time. also the talk of the homepage unit affecting revenues to this extent may be a little too much for investors to digest. from what i hear, the homepage unit was anyways not fully sold / terribly undersold and one would see the new media clients who are not exactly premium paying advertisers.
rediff has not only lost people, (across functions and levels) advertiser revenues but also, probably, the plot!!! but if you ask them, they will tell you they only lost the homepage unit :-)
agree with you…ajit is driving rediff down the drain..it is time for him to pass over the baton
Investors, including CXOs need to realise, new economy is people driven. And if they loose people….revenues will only look southward.
@ Rediff Watcher: "..web18 registering growth"..? is that why their top & middle rung people are leaving in a hurry and making headlines in media blogs?
Very disappointing. Rediff was the icon of India’s new economy, but 8 straight years of losses is inexplicable. You ask insiders and they claim it is one reason and one alone that resulted in this one way downfall. The stubbornness of Ajit Balakrishnan who continues to live in the past. As key people continue to leave the company it’s this couldn’t care less attitude which reflects poorly for other more aggressive new media companies such as infoedge etc to make it to NASDAQ. Overall shameful performance
@ reader: one company has people moving and revenues rising. the other has people moving and shrinking revenues. Who is making the right 'people decisions' is open for all to see.
Let's face it folks, rediff is performing yeoman service to the digital industry in India, making the other majors look good. In fact, if anyone can be trusted to come out with results that are always underwhelming to a fault, it is rediff in the past few years.
The good thing is, they are mostly dollar funded, so at least it is not an utter write off for us. Secondly, the exposure there has certainly created a bunch of smarter entrepreneurs, so that's a plus.
Otherwise for those thinking web 18 has turned around, just wait and see. Or to get a preview of things to come, take a hard look at their debtor's position. A lot of that money ain't coming in, and profits will take a severe beating when they get around to accepting it. So expect muted performance for at least the next 4-6 quarters. Their only hope I suppose is that rediff hangs around till then as an independent firm, to provide the right perspective:)
What’s the point of creating more users when you can’t monetize the current lot of them. Or trust the likes of rediff to commoditize these users even more. The yeild per user has been southward bound if you go by rediffs on admission of ‘consistently rising’ users q on q.as posted earlier on this thread, looks like rediff is really losing the plot.
Its time for CHANGE
the results are surprising for sure! ab had previously said that the homepage would cause a loss of a high single digit % and this is surely more than that. but i dont think rediff has lost the plot at all. they probably need to lose their commercial team or restructure by getting rid of dead woodand that has begun in the sales function. They will have 2 make up 4 lost time. this is clearly a revenue debacle.
about the comparison with web18 (babe in the woods) and google (king of the jungle), its absurd to club the 2 in the same boat. they are in completely different spaces and the scope of their operations cant have any affect on rediff. it will be interesting to know how yahoo has done to compare apples to apples.
The Big IFF by RedIFF
IFF only we grew in leadership rather than a free fall
IFF only we treated our people better
IFF only for a few moments, can it be not just a one man show. coz theres not much to show no more
IFF only were there a strong succession plan and not a strong discusson plan here
IFF only our products like ishare worked. on another thought, ishare what?
IFF only had we to manage our finance and costs better
IFF only had our HR concentrated on retainment rather than covert sacking
IFF only had our marketing team gone out to more client instead of only other dot com sales orders and collect the money after that
IFF only competition did not exists as it was some few years ago
then we would not be so RED
rediff is a write-off.
With low internet penetration, they can't play the 'india' card. That along with mediocre old-school product development makes it a very difficult sell to investors.
Break it into pieces, sell it off, buy a condo
second that – rediff is actually a write off. has lost visitors, employees, advertisers, homepage, revenues. it needs a reality check.
if they cant do it, read it here http://indianstartupgyaan.wordpress.com/2009/11/0...