Jeevansathi, the matrimonial service run by Info Edge, posted an EBITDA loss of Rs 58 lakh for the quarter ended September 30 (Q2 FY17). The company had turned EBITDA positive in the preceding quarter with a profit of Rs 65 lakh and revenues of Rs 14.56 crore. Revenues remained flattish from Q1 FY17 this quarter at Rs 14 crore. However, it grew 30% from Rs 11 crore in the same quarter last year.
The Shiksha business reported sales of Rs 8 crore and an EBITDA profit of Rs 30 lakh, Hitesh Oberoi managing director and CEO of Info Edge said in a call with analysts.
Note that Info Edge reports Jeevansathi, Shiksha and other companies it considers strategic investments together under a combined segment. The segment reported Rs 23.72 crore in revenues and Rs 84.8 lakh in loss in the September quarter.
Notes from the call
99acres will not be getting into new services: Oberoi said that 99acres is not getting into transactions for the real estate. “We believe we don’t need to add a lot of new services to our offering. What we need to do is execute better, offer more value to our customers and if we can do that, we can accelerate our growth from there on if the market gets better,” he added. He explained that the company will continue to focus on serving the new homes, resale and rental markets for the next 3-4 quarters.
99acres gets around $20 million of real estate advertising: Oberoi said that 99acres gets around $20 million of real estate advertising in a year. He added that the total real advertising market is about $500-600 million and that 99acres still gets $20 million even if market conditions continue to be slow.
Lower collections in Naukri: Senior management said that they changed incentives for the sales teams which resulted in lower collections for Naukri, its hiring platform. “What used to happen in the past was we used to get a lot of bunching of sales towards quarter end. And because renewals used to come up in quarter end, we used to give higher discounts than we wanted to give to our customers. What we have done now is give more leeway to the sales team to close a sale. So we are not putting pressure on them at quarter end,” Oberoi said. The changes for incentives were put in place in the middle of Q1 FY17.
“As a result of this transition, we are likely to see lower collections in the next couple of quarters – till Q4. And we are hoping Q1 and Q2 of next year will have better growth,” he added.
Naukri reported Rs 155.45 crore in revenues up 8.11% q-o-q and posted a Rs 84.82 crore in profit. In Q2, an average of 15,300 fresh CVs were added every day on Naukri and the database grew to 48.7 million CVs. Average CV modifications were at 248,000 per day in Q2 Vs 185,000 per day in Q2 of last year. Naukri serviced 37,500 unique customers Vs 34,000 unique customers in Q2 of last year.