Rediff.com has reported total revenues of $5.39 million for the first quarter ended June 30, 2011, recording a 4 per cent growth in comparison to $5.18 million recorded in the corresponding quarter in 2010. The company’s India online revenues witnessed a 6 per cent jump recording $4.42 million from $4.18 million recorded last year. US publishing revenues were down to $0.97 million from $1.00 million. The company’s net loss also grew to $2.30 million from last year’s $1.18 million.
“Certain sectors of the economy like Financial Services, Insurance and Telecom in which our clients operate, have witnessed challenging conditions over the past several months which is believed to have impacted their advertising spending. As a result, we saw declines in sequential top-line performance this quarter,” the company noted in a statement.
"While we wait for the broadband implementation and growth to take shape, we continue to focus on our strategy of growing our user base. Our recently launched initiatives include Rediff Deal Ho Jaye, with presence in 41 cities offering consumers 30 per cent to 70 per cent discounts across over 72 service categories, and our Rediff Local TV ad network, where we are currently tied up with two channels and a distribution network of nine cable operators covering six cities. Additionally, for our paid mobile mail service, Rediffmail NG, we remain in discussions with leading telecom operators in India to expand the availability of this service. We believe these initiatives will strengthen our position in the Indian Internet market, both now and into the future," Ajit Balakrishnan, Chairman and CEO of Rediff.com has said.
The company will continue to invest approximately $2.0 million to $2.5 million per quarter for the next few quarters. During the fiscal year ended March 31, 2011 the company has acquired Vubites India Private Limited and consolidated its result of operations. “Our cash balance stood at $35.9 million, as of June 30, 2011, which provides sufficient working capital to meet our liquidity needs and to execute on our strategy, including investments in product development, sales diversification and the entrance into new markets,” the company has said.
Related Tags:Insurance and Telecom, Rediff Deal Ho Jaye, Ajit Balakrishnan, Local TV ad network