Internet solutions company Lycos (formerly Ybrant Digital) reported digital marketing revenue worth Rs 1818.98 crore for the financial year ended March 31, 2016 (FY16), up 21.8% year-on-year (YoY) from Rs 1493.92 crore in FY15. However, sequentially digital marketing revenue witnessed a considerable dip of 40.50% in revenue to Rs 362.54 crore in Q4 FY16 from Rs 609.34 crore in Q3 FY16.
Profit before tax for the segment stood at Rs 120.74 crore, a decrease of 32.66% from Rs 179.31 crore in the previous quarter, and similarly a decrease of 18.3% from Rs 147.87 crore in the same quarter last year.
The company reported consolidated revenue of Rs 473.90 crore for Q4 FY16, a decrease of 34% quarter-on-quarter (QoQ) from Rs 718.26 crore, and an increase of 6.5% YoY from Rs 460.19 crore.
Digital marketing contributed 76.5% to Lycos’ consolidated operational revenue of Rs 473.90 crore in Q4 FY16, while for entire year its contribution was 80.6% of total operation revenue of Rs 2255.89 crore.
Software development revenue: Revenue from the software development business increased marginally, with the segment reporting revenue of Rs 111.36 crore in Q4 FY16, up 2.24% from Rs 108.92 crore in the previous quarter, but decreased by 14.1% from Rs 129.69 crore in the corresponding quarter last year.
Other developments
– In February of this year, Lycos had acquired Austria-based TriTelA which owns mysms messenger and the tech platforms SPG Wien and Kika Social. The acquisition was an all-stock deal for which Lycos will issue 2.848 crore additional shares in return for 100% ownership. Following this acquisition, Lycos got access to a cloud-based framework, letting the company tie SMS, IM services, wearables, cars and appliances to the user’s smartphones, tablets, laptops, OTTs and other devices.
– Earlier this month, the company appointed Y Ramesh Reddy as its group chief financial officer as well as executive director (finance) for the entire group. Reddy has been with the company as a director on the board for the last 8 years.
Download: Financials (pdf)
