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Rediff Q1FY13: Revenue At $3.67M; Net Loss Increases To $2.62M

Rediff.com reported a loss of $ 2.62 million for the quarter ending 3oth June 2012 (Q1-FY13), an increase compared to Q1-FY12′s loss of $2.30 million. The company’s revenue decreased about 32% (in dollar terms) from $5.39 million in Q1-FY12 to $3.67 million in the present quarter.

India Online: Compared to the same quarter last year, Rediff’s revenues from India Online decreased 37%(in dollar terms) closing at $2.79 million while its U.S. Publishing business dropped marginally at $0.88 million. However, within fee based revenues, revenues from online shopping business increased 109% in Rupee terms while achieving a margin of 12%, an increase of 100 basis points over the comparable year-ago period, as per the company.

The company said that its India Online revenues were impacted because of continued weakness in the banking, financial services, insurance and consumer electronics industries while it saw good traction in its Online Shopping segment with increased transaction volumes and improved margins. The company blamed the interplay of these trends and the effect of a falling Rupee vis-à-vis the US dollar for its results.

Ad revenues: Rediff’s India online advertising revenues declined 45% in dollar terms (34% in Rupee terms) compared to the corresponding quarter last year and 34% in dollar terms (28% in Rupee terms) compared to the immediately preceding quarter.

Rediff CEO, Ajit Balakrishnan said, “Our advertising clients and prospects are now looking for better, innovative and interactive solutions to their marketing problems, rather than simply paying for cheap online inventory. In response to their needs, we have made changes to our online advertising offerings, initially to some of our key clients, and retrained our sales team and will now extend these new solutions to all our clients throughout the 23 cities we service today. Additionally, we continue to focus on growing our ecommerce, Local deals, Local TV and Mobile Mail offering, while continuously improving the user experience on the Rediff.com site.”

E-Commerce revenues: While advertising revenues were down for the comparable period, Rediff says that it registered a 68% year-over-year increase in its ecommerce revenues, maintaining an 11% gross margin.

The Operating EBITDA loss for the quarter ended June 30, 2012 was higher, at $2.27 million, as compared to an Operating EBITDA loss of $2.01 million for the corresponding quarter last year. Additionally, operating expenses for the comparable fourth quarter periods declined from $4.32 million to $3.45 million, a decrease of approximately 20%.

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