Mumbai: Rediff.com has announced Q1 financial results. While the advertising revenues of the company in India grow 6%; total India revenues, which include fee-based and online advertising revenues, also grew 6% for the quarter.
Rediff’s global revenues grew 4% for the quarter, in each case over the same quarter last year. Certain sectors of the economy like Financial Services, Insurance and Telecom in which Rediff’s clients operate, have witnessed challenging conditions over the past several months which is believed to have impacted their advertising spending. As a result, Rediff saw declines in sequential top-line performance this quarter.
“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% to 70% 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” said Ajit Balakrishnan, Chairman and CEO of Rediff.com.
Rediff continues to invest approximately $2.0 – $2.5 million per quarter for the next few quarters.
“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,” Ajit Balakrishnan said.