Mumbai : Rediff.com has announced financial results of Third Quarter Ended December 31, 2010 .Advertising revenues of the company in India grow 39%; total India revenues, which includes fee-based and online advertising revenues, grew 31% for the quarter, while global revenues grew 25% for the quarter, in each case over the same quarter last year.
The services underlying core India ad business namely News, MyPage, Moneywiz, Mail and video sharing showed good growth as measured by comScore Media Metrix and internal sources. Indian active user base as measured by comScore Media Metrix grew 38% year on year which was higher than the market growth.
The recently announced government recommendations for publicly funded optical fibre networks and the rollout plans for 3G wireless services announced by multiple operators augurs well for the growth of the internet industry in India where the growth of users have been slow so far.
“We believe the revenue growth in the Indian internet industry will come through adoption of internet services by small and medium business broadly located in 200 odd towns across the country and our future success depends on how well we can design and deliver the services to these small businesses. In our portfolio of products in this direction are our mobile mail service Rediffmail NG, Local and affordable TV ads and social networking initiative MyPage. To each of these services we bring long years of experience a deep management team and robust platforms; and in addition we are now deploying a CRM system. However, each presents different challenges in technology and customer acquisition and our efforts are focused in addressing the same.” said Ajit Balakrishnan, Chairman and CEO of Rediff.com.
The Company expects to continue to invest $1.0 – $1.5 million per quarter throughout the fiscal year in product development and brand building to continue the momentum in user growth and to enhance the user experience on Rediff.com.
The Company’s cash balance stood at $39 million, inclusive of interest accrued, as of December 31, 2010, which provides sufficient working capital to meet its liquidity needs and to execute on its strategy, including investments in product development, sales diversification and the entrance into new markets.