Rediff.Com Q2 revenues at $5.1 million

Mumbai: Rediff.com has announced the Q2 financial results . Overall revenues for the quarter ended September 30, 2011 were $5.1 million, an increase of approximately 1% over the corresponding quarter last fiscal year. Within this, revenues from India Online increased 1% while company’s U.S. Publishing business was relatively unchanged, all compared to the corresponding period last fiscal year.

“We continue to focus our resources to position Rediff for the future by investing in our infrastructure and by partnering with technology leaders and operators to gain a competitive edge. The Indian Government, through it’s recently introduced, Draft National Telecom Policy, has announced aggressive plans to increase the broadband user base multifold, while significantly improving download speeds in both the short and long term. Additionally, plans were disclosed to bring fiber optic networks to rural areas and regions that have not experienced this technology before, which we believe bodes well for the telecom industry at large, and will have a positive impact on Rediff’s market position for years to come,” Ajit Balakrishnan, Chairman and CEO of Rediff.com said.

Ajit Balakrishnan said that Rediff.com has continued to build out service offerings, focusing on customer retention and growing our user base. The recently announced daily deals service Rediff Deal Ho Jaye!, now has close to 4,000 merchants and is gaining traction every day. the company is now looking to drive user adoption through mass media campaigns, while at the same time, providing support to participating merchants to help grow their business.

“Our Rediff Local TV ad network is now live in 5 cities – Mumbai, Pune, Ahmedabad, Surat and Baroda – and provides a solution that small merchants need, and a future sales channel for our Company. In regard to Rediffmail NG, our paid mobile mail business, we are in the process of technical and billing integration with our telecom partners, and looking to grow our presence with small and medium sized enterprises. Additionally, we remain in discussions with several operators as we look to expand our reach throughout the mass India market,” Ajit Balakrishnan said.

Ajit Balakrishnan said that the company has recently introduced a micro blogging service that enables users to broadcast messages and participate in conversations with other users, while providing the ability to shorten URLs on the fly. The service is integrated with Rediff’s social media initiative MyPage.

“We are confident that all of these initiatives will position us for meaningful growth in the future; one that we believe is not so far away given increased investments in technology and throughout India’s infrastructure. We are equally encouraged by the renewed and aggressive commitment from the Indian Government to spearhead broadband adoption and improve quality and service. This is why we continue to invest in our business and expand the reach of the Rediff brand,” said Ajit Balakrishnan, Chairman and CEO of Rediff.com.

Cash balance stood at $29.4 million, as of September 30, 2011, and the company continue to invest approximately $2.0 – $2.5 million per quarter in our business.

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