Rediff has reported an overall 18 per cent decline in revenues in dollar terms on a year-on-year basis for the financial year 2012.
While advertising revenues were down for the comparable periods, the portal saw a 68 per cent year-on-year increase in e-commerce revenues, maintaining an 11 per cent gross margin. For the quarter ended March 31, 2012, the India online advertising revenues declined 16 per cent in rupee terms on a year-on-year basis.
Total India revenue, which includes fee-based and online advertising revenues, declined 14 per cent in rupee terms. The India online revenues were impacted by 11 per cent due to foreign currency fluctuations as the rupee weakened vis-à-vis the US dollar in the comparable year-on-year periods. The operating EBITDA loss for the quarter ended March 31, 2012 was lower at $1.20 million, as compared to an operating EBITDA loss of $1.29 million for the corresponding quarter last year. Additionally, operating expenses for the comparable Q4 periods declined from $3.97 to $3.49 million, a decrease of approximately 12 per cent.
The growth in e-commerce revenues is attributed to Rediff’s continued investments to improve search and browse functionalities, an addition of a voice based call-centre support and improvements in the efficiency of third-party logistics system. The portal also continues to invest in its local deals and local TV ads businesses, which hold much long-term promise, but remains in the initial stages of growth.
Rediff was founded in 1996. It is headquartered in Mumbai, with offices in New Delhi and New York.