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Another Loss Making Year For Rediff Comes To A Close; India Revenues Up 22%

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Rediff.com continued to register losses for another consecutive year, its third loss making year in a row, albeit with a marginal decline. For the financial year ended 31st march 2011, Rediff’s annual net loss was at $6.57 million , a decline of 18% from the previous year’s loss of $8.03 million. Total India Revenues for the financial year FY11 saw an increase of 22.12% at $17.94 million compared to the previous year’s revenues of $14.69 million. Total revenues for the year also grew marginally by 15.6% at $21.79 million, compared to FY10’s $18.84 million. The Company’s cash balance stood at $36.92 million, as of 31st March 2011. Rediff expects to continue to invest $1.0 – $1.5 million per quarter throughout the fiscal year.

It’s been quite a year for the Rediff.com ADR, though – from being down in the dumps at $1.69 on July 21st 2010, the Rediff.com ADR has been above or around the $10 mark since April, and rose to $17.98 late during the fiscal year. What’s driving this increase in share price?

Quarterly Results

Rediff reported growth in online advertising revenues, witnessing an increase of 24% Year-on-Year for the quarter ended 31st March 2011. Its total India revenues, which include fee-based and online advertising revenues, increased 20% YoY at $4.84 million and contributed to a 13.7% increase in total revenues. Rediff reported a net loss of $2.28 million, a small decline compared to Q4FY10, and Operating EBITDA increased 31.02% to a loss of $1.29 million The company informs that its active user base in India grew 43% according to the ComScore Media Metrix. Quarter on Quarter comparisons will not be accurate, since the company used a different exchange rate.

Press ReleaseQ3-FY11

Highlights

As it has been doing over the past year – ever since the 3G auction, Rediff has pitched to investors that real growth will begin to take hold over the next 12-24 months as anticipated broadband Internet and 3G services become more widespread and affordable, as networks deliver a high-speed and higher quality internet experience for the consumer.

During the fourth quarter, it introduced SlideSong, a feature that enables users to add music to photo albums and share with friends on its social media initiative MyPage. It also enabled discovery of its music streaming service SongBuzz through its movies section. The company also launched Rediff Deal Ho Jaye in 40 Indian cities, with a cash-on-delivery payment option.

Related:
Rediff Launches Daily Deals; Offers Cash On Delivery For Deal Coupons
Rediff Q3-FY11 Call: Advertiser Segments, Vubites Expansion, Mobile Deals
Natural For Rediff To Get Into The Group Buying Space Says Ajit Balakrishnan

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