New Delhi, India, January 24, 2014: Rediff.com, one of the online providers of news, information, communication, entertainment and shopping services to Indians worldwide, has announced results for its third quarter ended December 31, 2013.
The Company reported overall revenues for the 2013 third fiscal quarter of $4.17 million, a 5% increase in US dollar terms and 20% increase in Indian Rupee terms compared to the same period last year. Revenues were positively impacted by growth in the Company’s India Online operations, which increased 7% in US dollar terms (22% in Rupee terms) to $3.42 million over the corresponding quarter last fiscal year. Revenues from Rediff’s U.S. Publishing business declined by approximately $0.01 million or 3% for the comparable fiscal third quarter periods.
Gross profit margins for the three months ended December 31, 2013 were 39% as compared to 38% in the comparable period last year. Operating expenses were $3.12 million in the fiscal 2013 third quarter, a decline of $0.4 million as compared to $3.52 million for the three months ended December 31, 2012.
We are fully embracing the move of online users from PC to Mobile and have now strong mobile phone offerings for Online Shopping Marketplace, Enterprise Email and News. We are also leading the world-wide efforts in data journalism and you can see some examples of our work using Bayesian techniques on our homepage under the Rediff Labs link.
Chairman and Chief Executive Officer of Rediff.com Ajit Balakrishnan said, “Despite the challenging economic environment and continued competitive pressures, we have been successful in growing our business. Our gross margins are holding firm and we continue to implement prudent cost control measures, while strategically investing in our business. Our efforts towards introducing content marketing and native ads, with an objective of improving our online advertising offering is showing early signs of success and both our Enterprise Class Email business and Online TV Marketplace initiatives continue to gain traction.”
The Company’s Operating EBITDA loss declined 25% to $1.50 million for the quarter ended December 31, 2013; the net loss was 37% lower at $1.90 million while the net loss per ADS of $0.069 for the same period was lower to the same extent by $0.04, compared to the same quarter last year.
Balakrishnan added, “Our goal remains to accelerate our growth and also to bring Rediff to profitability and we are doing all that we can to achieve this near-term. We see growth opportunities in all the markets we address including Online Advertising, Online TV Marketplace, Enterprise Email and marketplace for Online Shopping. The challenge is to accelerate growth and achieve profitability quickly.”