For the quarter ended March 31, 2011, Rediff.com saw a growth of 24% on a yearly basis and 2% sequentially. Rediff’s total India revenue, including fee-based and online advertising revenues, hiked up by 20% and 1% respectively during the same periods. Rediff’s user base in India increased by 43%, as reported by ComScore Media Metrix, a much higher growth rate than the total Internet market’s in India.
“In the recent quarters and specifically in the last year, growth in revenue and in our user base shows very early signs of the positive impact of our strategic initiatives. We believe future periods will be reflective of greater recall of the Rediff brand, driven by our new service offerings, as well as the continued build-out of the broadband infrastructure in India. We also believe that the real growth for our Company will begin to take hold over the next 12-24 months as anticipated broadband Internet and 3G services become more widespread and affordable, and equally important, as networks deliver a high-speed and higher quality Internet experience for the consumer,” said Ajit Balakrishnan, Chairman and CEO, Rediff.com.
In order to strengthen Rediff’s future, the management worked hard over the past two to three years with the aim of venturing into new growth markets thereby increasing their total revenue earning capacity through subscription businesses while also improving the operational efficiency of the core business. The entire Rediff website was overhauled to make it mobile friendly in order to reach more number of potential customers.
Rediff has also enhanced user experience by adding innovative features to existing services. During the fourth quarter, MyPage, Rediff’s social networking service, saw the addition of SlideSong that allows users to add music to picture albums and share them with friends. Rediff’s movie section, which reviews latest movies, now also features its music streaming service SongBuzz. These initiatives were taken with the aim of furthering growth of the Rediff brand and make it the website of choice.
Rediff Deal Ho Jaye!
Rediff’s new “Rediff Deal Ho Jaye”, a Group Deals service which provides advertising solutions for local merchants, has been launched in 40 Indian cities and offers a cash-on-delivery option. Merchants can build on their existing business by taking advantage of Rediff’s web traffic of 15 million unique visitors per month and increase their customer base by offering special discounts and promotions.
Mr. Balakrishnan continued, “Deal Ho Jaye! will help consumers discover new services and experiences in their city, such as restaurants, spas, hotels, healthcare, tattoos, hobby classes, adventure sports and other local attractions across 70 categories and at 30-60% discounts, thus helping them make the most of their quality time with their family and friends. We are excited about this new offering as it offers growth potential for our Company over the long-term, while providing consumers with value-added, discounted services today.”
As of March 31, 2011, Rediff’s cash balance was $36.92 million, which provides enough working capital to cover its liquidity needs and deploy its strategy, including investments in product development and marketing initiatives. Rediff will continue to invest $1.0 – $1.5 million per quarter throughout the fiscal year.
Investors can visit investor.rediff.com for more information.