Rediff.com reported a loss of $2.64 million for the quarter ending 30th September 2011 (Q2-FY12), an increase compared to Q2-FY11’s loss of $1.59 million. At the closing of the quarter, the company’s cash balance stood at $29.4 million, and it intends to continue to spend $2-$2.5M per quarter for the next few quarters for investments in product development, sales diversification and the entrance into new markets. The company’s revenue increased about 1% from $5.07 million in Q2-FY11 to $5.10 million in the present quarter.
Compared to the same quarter last year, Rediff’s revenues from India Online increased 1% closing at $4.18 million while its U.S. Publishing business was relatively unchanged at $0.92 million.
Deals Business: According to the financial release, its daily deals service Rediff Deal Ho Jaye!, now has close to 4,000 merchants and the company is now looking to drive user adoption through mass media campaigns. It also aims to provide support to participating merchants to help grow their business.
Vubites: Rediff Local TV ad network is now live in 5 cities – Mumbai, Pune, Ahmedabad, Surat and Baroda.
RediffmailNG: Rediff says that it is in the process of technical and billing integration with its telecom partners, and looking to grow its presence with small and medium sized enterprises. It’s also in discussions with several operators to expand the service’s reach across India.
Microblogging Service: The company has introduced a microblogging service (on the lines of Twitter) that enables users to broadcast messages and participate in conversations with other users, while providing the ability to shorten URLs on the fly. The service is integrated with its social mediaproduct MyPage.
We will have more after the earnings call.
– Rediff’s Micro-Blogging Service Has Nothing New To Offer
– Ajit Balakrishnan On Profitability & Whether Rediff Has Missed The Bus
– Rediff To Expand Deals Biz; $2.3M Loss; Pageviews, Inventory