Rediff.com recently reported a loss of $ 2.34 million for the quarter ending 3oth September 2012 (Q2-FY13). During the the company’s conference call, Rediff CEO, Ajit Balakrishnan informed that while the overall revenues declined year-over-year, there were a number of business areas, which continued to show growth and that Rediff had started to see increased advertising spend during the second quarter of this year.
On Advertising Revenues: Ajit Balakrishnan stated that India Online advertising revenue increased by 7% Q-o-Q in dollar terms, which were driven by advertisers in the IT, education, real estate, online shopping and insurance sectors. However this growth was offset by the advertising spent of their clients in online jobs, online matrimony, travel, auto, and telecom sectors.
Balakrishnan also talked about the changes made in online advertising solutions offer in previous quarter to Rediff’s key clients in the FMCG, Auto and Consumer Electronics sectors. The different approach reflected in the growth this quarter for online revenue, online ad revenues.
India Revenues: Swasti Bhowmick, Chief Financial Officer, informed that revenues from India Online were US$3 million or Rs. 165 million, a decrease of 28% or 14% in rupee terms over the corresponding quarter last fiscal year. This includes both online advertising revenues and fee-based revenues, these totaled US$1.99 million or Rs. 110 million and US$0.97 million or Rs. 54 million respectively in the quarter ended September 30, 2012.
Fee-based Revenues: The fee-based revenues includes revenues from its local deals offering which increased by 92% in rupee terms. Revenues from Mobile VAS declined by 34%, the company blamed it to be cause of the strict enforcement of the Do Not Disturb policy laid down by TRAI in September 2011.
Ecommerce: Balakrishnan also informed that e-commerce revenue which includes margin and shipping recovery grew 20% on a sequential basis and 61% on a year-on-year basis. Rediff has also increased vendors to about 510 in the previous quarter to 620 in the current quarter, an increase of 22%, while they also increased their product range from 138,000 SKUs to 172,000 SKUs. Balakrishnan also informed that Rediff has been able to maintain a positive margin of 12% in Rediff’s Online Shopping business.
VuBites: Balakrishnan also talked about adding two more channels namely Times Now and ET Now in their local TV offering which now includes 4 channels including Zoom, NDTV Good Times, ET Now, and Times Now. Their local TV offerings now extends to two other cities in India, Indore and Jaipur, in addition to the eight local markets including Delhi, Bombay, Pune, Ahmedabad, Baroda, Surat, Mysore and Bangalore.
On Corporate Business: The number of corporate businesses subscribing to paid mail business has grown 12%, from 267 customers in September 2011 to 299 at the end of the current quarter. Rediff has also extended the access of paid mail platform to enable clients to synchronize their mails with Outlook clients on desktop.