Rediff.com has reported a net loss of $3.39 million for the quarter ended March 31, 2014 (Q4-FY14), as compared to $3.47 loss in the same quarter last year. On the operating front, this is effectively Rediff’s 25th straight loss making quarter. While the company had reported a profit of $1.06 million in Q2-FY14, this was on account of the sale of an equity investment for $2.74 million.

The total revenues also declined by 4% year-on-year (YoY) to $4.01 million for the quarter, from $4.18 million in the same quarter last year. The company however noted that on rupee terms, the revenues grew by 10% for the quarter. This was driven by an increase in the company’s fee-based revenues and online shopping revenues, offset by declines in online advertising revenues and its traditional U.S. publishing business.

While Rediff hasn’t disclosed any data on the performance of its e-commerce business or online advertising business, it mentioned that the e-commerce revenues surpassed display advertising revenues for the first time in the company’s history. The e-commerce revenues apparently grew by 103% during the quarter, while maintaining a positive product margin of 14%. The company also added more than 400 merchants during the quarter and increased the number of product listings available on its site to over 4,50,000.

Note that the company had reported a net e-commerce revenues (i.e. not value of goods sold) of $0.6 million in the Q4-FY13. Therefore, the net e-commerce revenues for this quarter is around $1.2 million, as per our calculations.

E-Mail Business: Rediff’s fee-based enterprise-class e-mail business added 85 new corporate clients during the quarter, taking the total customer base to over 1,000. The revenues apparently grew by 22% for the quarter.

In a statement, Rediff Chairman and CEO Ajit Balakrishnan mentions that its commerce business and e-mail business will be the near-term growth drivers for the company, with majority of the growth coming from its e-commerce business. Over the long term, he hopes to see meaningful growth from their Vubites platform.

FY14 Results

For the financial year ended March 31, 2014, Rediff posted a net loss of $6.11 million, as compared to $11.46 million loss in FY13. The total revenues also increased by 4% YoY to $16.25 million, from $15.66 million in FY13. This growth was driven by the increase in its India Online operations which grew by 7.7% to $13.5 million for FY14. This was offset by the decline in its US publishing business which dipped by 12.2% YoY to $2.75 million for FY14.

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