Rediff.com reported a loss of $ 2.34 million for the quarter ending 3oth September 2012 (Q2-FY13), a decrease compared to Q2-FY12′s loss of $2.64 million. The company’s revenue decreased about 24.7% (in dollar terms) from $5.10 million in Q2-FY12 to $3.84 million in the present quarter.
India Online: Compared to the same quarter last year, Rediff’s revenues from India Online decreased 28.2% (in dollar terms) closing at $3 million while its U.S. Publishing business dropped marginally at $0.84 million.
Ad revenues: According to Rediff, the Company’s core online advertising business in India has shown a positive quarterly sequential growth of 7% in dollar terms, in the second fiscal quarter of 2012, amidst the prevailing economic slowdown in India and global uncertainty.
Rediff CEO, Ajit Balakrishnan said, “There continues to be difficult economic conditions which have curtailed our near-term growth, but we believe the promise of the broadband revolution remains very much a reality. We believe that the modest growth we are seeing in our India online and ecommerce businesses, and the uptick in demand for our News Search and RediffMail offerings, are early indicators that our strategy of positioning Rediff for future growth is beginning to gain momentum,”
He said that Rediff was actively managing its expense structure but continues to invest in areas it believes will successfully position Rediff for the future, such as News Search, ecommerce, and local TV advertising. He also mentioned that Rediff was improving its website functionality to provide a more rounded offering for both Indian consumers and its current and potential advertising partners.
E-Commerce revenues: In the same period, revenue from Rediff.com’s ecommerce business grew 20% on a quarterly sequential basis and 61% on a year on year basis, while maintaining a positive margin of 12%, according to the company.
Rediff’s ecommerce offering now includes 172,000 SKUs, which represents a 24.6% increase over the comparable second quarter last year. Rediff claims that the number of vendors it works with today has also increased by 22% for the same periods.
Apps: Rediff’s News and information service is now deliverable on apps for platforms such as Android and Windows, while the Rediffmail service is available on mobile platforms such as Symbian, Java and Android.
The Operating EBITDA loss for the quarter ended September 30, 2012 was lower, at $1.87 million, as compared to an Operating EBITDA loss of $2.11 million for the corresponding quarter last year. Additionally, operating expenses for the comparable quarter periods declined from $4.60 million to $3.20 million.