In its annual report (6K filing) earlier this month, Rediff.com reported that its advertising revenues from India were Rs. 50.22 crore for the financial year ending March 31st 2010, down 21.4% from Rs. 63.97 crore for the previous fiscal year.
In comparison to its advertising revenues, its Fee based revenues (including e-commerce, email, matchmaker, CRBT etc) were down 19.59% to Rs. 20.69 crore. This figure is inclusive of service tax, but it does give us the contribution of non-advertising related businesses to Rediff’s topline.
While Rediff hasn’t disclosed a split in its fee based revenues for India, some idea of its international fee based revenues can be gleaned from its foreign exchange earnings: Rediff.com India earned Rs. 30,25,973 from e-commerce services as foreign exchange, down from Rs. 36,21,415 a year ago, and Rs. 1,08,87,553 from Media, Mobile and other services, down from Rs. 1,71,88,651.
Rediff.com Inc, wherein website (advertising and fee based) revenues targeting the Indian American community are recognized, reported gross income of $1,029,370, and Gross and Net Profit of $163,253.
In terms of Rediff’s other businesses outside India:
– India Abroad (publication): reported gross income of $2,688,339 and Gross Loss (before depreciation, amortization, impairment write down and taxes) of US $354,519, and net loss of $415,241.
– India in New York Inc (a subsidiary of India Abroad) reported a gross income of $214,099, and Gross and Net Profit (before depreciation, amortization, impairment write down and taxes) of US $131,939.
– India Abroad Publications (Canada), Inc: reported gross income of C$245,341, Gross Loss (before depreciation, amortization, impairment write down and taxes) of C$78,003, and net loss of C$83,620.
For Rediff, total revenues (Including US and India) were Rs. 91 crore, down from Rs. 109.3 crore in the previous financial year, and it reported a net loss of Rs. 27.5 crore, as compared to a net loss of Rs.50.9 crore the previous fiscal.
Rs. 17 Crore In Writeoff’s
What’s quite surprising, is its write-off’s: Rediff wrote off Rs. 17.05 crore as provision for doubtful debts for the financial year FY10, down from the Rs. 18.62 crore it had provisioned during the previous year.
In the annual report, there’s also a confirmation of Rediff’s investment in Fintact (BigSlick Infotech), something which they didn’t confirm to us. This value of investment, of around Rs. 40 lakh, reduced, and Rediff concluded that “such investment was other than temporarily impaired.”
This investment apparently has met the same fate as that of Vakow, the twitter clone that Rediff funded. Strangely enough, Rediff’s investment in Examville is not mentioned in the annual report. We’ve requested Rediff for a clarification on the same, and will update in case Rediff responds.
All in all, Rediff has set aside Rs. 69,307,680 as amount written off, in its investments of Rs. 179,047,680.