Web18*, the Internet and Mobile business from the Network18 group has reported revenues of Rs. 18 crore for this quarter ended June 30th 2010, up 26.67% when compared with the same quarter last year. However, quarter on quarter, revenues have declined 21.74% for the company. As a result, after having reported an operating profit in the fourth quarter of the last fiscal, the company is back in the red.
However, if you look at the QoQ chart below, you’ll notice that it isn’t unusual for Web18 to report (or record) low revenues for the first quarter, and build it up for the rest of the year, eventually reporting a profit in Q4. The number to keep an eye on, though, are Web18s expenses, which are up year on year by 16.67%.
Operationally, Web18 launched a Hindi avatar for MoneyControl.com. Note that Rediff.com has launched Hindi and Gujarati versions for its competing service MoneyWiz. According to the release, In.com also launched a new version of its email service, and added a mobile version. BookMyShow, in which the Network18 group owns 60%, reported 200% growth in ticket sales over Q1-10.
Also note that Web18 has since taken its mobile properties in-house. The mobile properties were previously being managed by July Systems, so it will be interesting to see if this results in a further decrease in expenses in the following quarters. Note that during the quarter, former Web18 CEO Surya Mantha left the company to Join VC Firm Omidyar Network
Disclosure: CricketNext, a Web18 property, is a MediaNama advertiser.