Digital marketing solutions company Ybrant Digital which recently rebranded as Lycos Internet, has reported digital marketing revenues of Rs 344.53 crore for the quarter ended September 30, 2014, registering a 22.2% growth from Rs 281.87 crore in the same quarter last year and a minor 1% growth quarter-on-quarter (QoQ).
The profit before tax from the segment also more than doubled to Rs 130.87 crore for the quarter, from Rs 62.92 crore profit in the same quarter last year and up 9.2% QoQ.
Digital marketing revenues still dominates Ybrant’s revenues, with the segment accounting for 74.9% of the company’s consolidated revenues, which was at Rs 460.19 crore for the quarter. This is marginally up from 73.1% in the same quarter last year and nearly same as 74.8% in the previous quarter.
Software development revenues continues to slide
Revenues from the software development business continues to slide, with the segment reporting revenues of Rs 115.66 crore for the quarter, down 4.2% from Rs 120.73 crore in the corresponding quarter last year but nearly flat from Rs 115.14 crore in the previous quarter.
The segment also posted a loss before tax of Rs 0.09 crore for the quarter, as compared to a profit of Rs 16.46 crore in the same quarter last year and Rs 8.64 crore profit in the previous quarter.
As a result, the contribution of software development to Lycos’ revenues dropped to 25.13% for the quarter, from 30% in the same quarter last year and from 25.2% in the previous quarter.
Ybrant Digital rebranding: Last month, Ybrant Digital had informed that it intended to consolidate all its media properties and rename the company as Lycos Internet limited. Note that Ybrant had acquired Lycos from Korea’s Daum Communications for $36 million in an all-cash deal back in August 2010.
This new entity will now have two divisions – Lycos Media that includes the company’s network of community and social sites and Ybrant Digital which will look after the company’s digital marketing business. Last month, Lycos Internet also appointed Ed Noel as the head of Lycos Media division.
The company received approval (pdf) for this rebranding from its shareholders and the Registrar of Companies (RoC) earlier this month and it is now making name and ticker change requests to BSE. Lycos Internet got listed as Ybrant Digital on BSE in July 2012.
Financials: Lycos posted an overall net profit of Rs 82.48 crore for the quarter, up 42.8% from Rs 57.76 crore in the same quarter last year. The total operational revenue was at Rs 460.19 crore, up 14.3% from Rs 402.6 crore in the same quarter last year.
Download – Financials