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Rediff Losses Widen Even As It Invests In ‘Improving Customer Experience’

Nasdaq-listed Rediff.com (NSDQ: REDF) India Ltd today said net loss for the quarter ended 30 September widened by 84% to $2.61 million, from $0.41 million during the corresponding quarter last fiscal. 

Total revenues dropped 43% year-on-year to $4.19 million. Revenues from India Online dropped 45% y-o-y to $3.08 million.

2Q 2009 2Q 2008
Earnings Per ADS -$0.089 -$0.014
Net Income -$2.61 million -$0.42 million
Revenue $4.19 million $7.32 million


“As we had said in our last earnings call, we have taken a number of steps to improve the customer experience on our site, including the removal of ads from our home page, reduction of intrusive and non-contextual ads on other pages, as a result of which we expected a reduction in our revenue in the upcoming quarters. Accordingly, we saw a decline in revenues for the quarter ended September 30, 2009 by 16% over the previous quarter and by 43% over the corresponding quarter in the previous year in US Dollar terms. However, we believe that these user–experience-improvement initiatives have started to show results and have helped us restore the growth in our user base, as measured by ComScore (NSDQ: SCOR) Media Metrix,” Rediff chairman and CEO Ajit Balakrishnan said in a statement.

Balakrishnan said the company will continue this strategy and invest in product development and brand building at the rate of $1-1.5 million in the next few quarters.

Nov 6, 2009 10:14 AM ET
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Posted In: Money, Earnings, Companies, Rediff

  • Saurabh

    This is interesting. I guess it’s been quite some time since we have seen some interesting feature/product update from Rediff. Compare it with Google Labs, Facebook Apps or Yahoo where new products keep us busy exploring some thing every passing month.. If you stop giving new things to the customer, they would stop exploring the place…
    Other reason I see is Twitter and Facebook. They are quicker, faster and better source of news to me than any other website today… and rediff is feeling the pinch too but they need to be innovative in product offerings to tackle that.

  • Apurv

    Try this:

    Go to Rediff homepage and search for something using the search box on top. On the Search results page, go to the 'Advertise with us' link and click on it. Where does it take you? Here - http://localads.rediff.com/postad/

    Whereas it should be linking to this - http://clients.rediff.com/rediff_advertisewithus/contact.htm

    How much business did Rediff lose due to this?

  • Shaan Batra

    So how are they going to make money? They are getting rid of ads and continuing to focus on growth. What's their plan for monetizing?

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