In what was seen as a bad quarter for online advertising in India,‘s advertising revenues declined only to $2.19 million, down marginally from $2.33 million the previous quarter, and up 14% year on year. This quarter on quarter decline is probably lower in Rupee terms because the Rupee has depreciated significantly; fee based revenues also increased to $1.18 million (up 27% year on year), largely driven by a 78% year-on-year increase in its online marketplace business. Last quarter, we had estimated Rediff’s ecommerce business at $0.6 million. All in all, India online revenues increased by 20.79% year on year to $3.37 million, from $2.79 million.

Total revenues increased to $4.11 million from $3.67 million (up 12% year on year), while loss declined to $1.87 million from $2.62 million for the same quarter last year. This is Rediff’s 20th straight quarter of losses (in US$ terms). US Publishing revenues for Rediff declined, reporting $0.74 million in revenues as compared with $0.88 million reported for the same quarter last fiscal.

Rediff appears to be conserving cash at the moment. In a statement, its Chairman and CEO Ajit Balakrishnan said that “concentrated efforts on conserving cash will take us a step closer towards profitability, especially as our margins increase and our top-line grows.”

He added that Rediff’s gross margins this quarter were 44%, compared to 32% for the same quarter last fiscal year. The Company reported an Operating EBITDA loss of $1.47 million for the quarter down from $2.27 million in the comparable period last year.

Need To Know
– Advertising revenues: $2.19 million
– Fee based revenues of $1.18 million
– Loss of $1.87 million, Operating EBITDA loss of $1.47 million

Note: We missed Rediff’s concall yesterday, and have written to the company for some updates.