Rediff.com has made its first profit in 21 quarters – reporting net income of of $1.06 million – for the quarter ended 30th September 2013 (Q2-FY14), on account of a sale of “an equity investment”, which brought the company $2.74 million. Without the sale, the company would have reported a net loss of $1.68 million. At an operating EBITDA level Rediff reported a loss of $1.62 million for the quarter, down from $1.87 million a year ago.
Online advertising revenues for the company declined to $1.88 million, down 11% from the same quarter last year, thus suggesting that for the three month period of July-August-September, online advertising for portals and publications declined. On the whole, Rediff’s India Online revenues increased 6% year on year to $3.18 million, helped by a 33% increase in fee-based revenues to $1.30 million.
Overall revenues for Rediff increased marginally to $3.96 million, up 3% increase in US dollar terms and 17% in Indian Rupee terms. Loss is a standard state for Rediff, having made losses for around 20 consecutive quarters now. The company made an EBITDA loss of $1.62 million, down from $1.87 million a year ago, and
Note that the devaluation of the Indian rupee during this period would have impacted reporting of revenues in US dollar terms, which Rediff has to do because it is listed on NASDAQ, despite most of its business being India focused.
In a statement, Rediff Chairman and CEO Ajit Balakrishnan has said that there has been “continued softness in the India market”. He claims that Rediff saw growth in its online marketplace business, as well as in enterprise email business and local TV advertising (Vubites). The company now says it is focusing on reducing expenses and conserving cash, whereas only a few quarters ago, it was spending around $2 million a quarter on advertising.