Breaking News

Glaxo to Pay $488.7 Million Fine to End China Corruption Probe
Tweet TWEET

Rediff.Com Reports Results for the Third Fiscal Quarter Ended

Mumbai, Maharashtra, India, Thursday, January 24, 2013 -- (Business Wire India) 
Rediff.com, one of the premier online providers of news, information,
communication, entertainment and shopping services to Indians worldwide, today
announced results for its third fiscal quarter ended December 31, 2012. 
The Company reported overall revenues for the 2012 third fiscal quarter of $3.97
million, 18% less as compared to $4.81 million reported in the 2011 third fiscal
quarter.-. On a sequential basis, overall revenues increased 3% over $3.84
million reported in the 2012 second quarter.  
Several of the new ecommerce and advertising initiatives the company has
embarked on have begun to post positive increases and as a result, the Company's
core online advertising business in India grew approximately 7% (in dollar
terms) on a sequential basis, despite the continued challenging economic
landscape in the country. Revenue from Rediff.com's online shopping marketplace
business grew 11% on a quarterly sequential basis and is now up 85%
year-over-year, while maintaining a positive margin of 12%. Additionally, during
the 2012 third fiscal quarter, the range of products listed on the Rediff.com
marketplace grew 7% from 172,000 SKUs to 184,000 SKUs. 
The Company's internet-based Local TV advertising business added three new TV
channels to its distribution network in the third fiscal quarter of 2012 and now
can reach up to 80 million individuals, while enabling local merchants in 10
Indian cities namely, Delhi, Mumbai, Pune, Ahmedabad, Baroda, Surat, Mysore,
Bangalore, Indore and Jaipur to advertise on seven National TV channels –
Zoom, NDTV Good Times, Times Now, ET Now, UTV Movies, Bindaas and ABP News at a
city level. Local TV advertising was launched over the past year and has helped
offset some of the weakness seen in the overall advertising market due to the
economy, though there are signs that certain verticals are returning to more
historical spending patterns. 
“We are pleased with the progress we are making, and at the same time
cautiously optimistic about the sequential growth in our overall revenues for
the last three quarters. We believe that our recent growth is the result of the
changes we implemented two quarters ago where we revamped our sales strategy for
our Online advertising businesses and focused investments on growth-driven
programs, specifically related to our online shopping marketplace and internet
based Local TV advertising business,” said Ajit Balakrishnan, Chairman and
Chief Executive Officer of Rediff.com. 
“While broadband growth in India continues to progress, albeit at a slow pace,
the mobile user base in India is growing fast and holds vast potential for our
Company. As per Nielsen Informate Mobile Insight, there are already 27 million
smartphone users in urban India and this market has grown rapidly. As a part of
our strategy of positioning Rediff for future growth, we are focusing our
efforts to drive usage of our services among mobile phone users, in addition to
our traditional internet offerings. As a step in this direction, our popular
services including Mail and News are now available in the form of mobile
applications on leading operating systems such as Android, iOS, Blackberry,
Windows, Symbian and Java,” Mr. Balakrishnan continued. 
The Company reported an Operating EBITDA loss of $2.0 million for the 2012
fiscal third quarter as compared to an Operating EBITDA loss of $1.73 million in
the comparable year-ago period.  
The Company also reported a net loss of $3.0 million for the 2012 fiscal third
quarter, including a non-cash goodwill impairment charge of $2.0 million arising
from our acquisition of the print newspaper “India Abroad” in the United
States in 2001, offset by a one time gain of US$ 1.4 million from the sale of an
investment. The charge does not impact our cash or liquidity position. 
(Operating EBITDA is a non-GAAP financial measure. Please see further below in a
tabular form in this release, the reconciliation of Operating EBITDA to net
income.) 
Further details of Rediff.com's results for the third fiscal quarter ended
December 31, 2012 are appended in tabular form to this press release. A script
of the earnings results conference call held on January 24, 2013 will also be
made available on Rediff's Investor Information website at investor.rediff.com. 
About Rediff.com 
Rediff.com (NASDAQ: REDF) is one of the premier worldwide online providers of
news, information, communication, entertainment and shopping services to Indians
worldwide. Founded in 1996, Rediff.com is headquartered in Mumbai, India with
offices in New Delhi, India and New York, USA. 
Safe Harbor 
Except for historical information and discussions contained herein, statements
included in this release may constitute "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and reflect our current
expectations. Forward-looking statements are identified by certain words or
phrases such as "may", "will", "aim", "will likely result", "believe", "expect",
"will continue", "anticipate", "estimate", "intend", "plan", "contemplate",
"seek to", "future", "objective", "goal", "project", "should", "will pursue" and
similar expressions or variations or negatives of such expressions. These
statements involve a number of risks, uncertainties and other factors that could
cause actual results to differ materially from those that may be projected by
these forward-looking statements. These risks and uncertainties include but are
not limited to the slowdown in economies worldwide and in the sectors in which
our clients are based, the slowdown in Internet and IT sectors worldwide,
competition, the success of our past and future acquisitions, attracting,
recruiting and retaining highly skilled employees, technology, acceptance of new
products and services, the development of broadband Internet and 3G networks in
India, legal and regulatory policies, managing risks associated with customer
products and the widespread acceptance of the Internet as well as other risks
detailed in the annual report on Form 20-F and other reports filed by Rediff.com
India Limited with the U.S. Securities and Exchange Commission. Rediff.com India
Limited and its subsidiaries may, from time to time, make additional written and
oral forward-looking statements, including statements contained in the Company's
filings with the U.S. Securities and Exchange Commission and our reports to
shareholders. Rediff.com India Limited does not undertake to update any
forward-looking statement that may be made from time to time by or on behalf of
the Company. 
STATEMENT OF OPERATIONS QUARTER ENDED DECEMBER 31, 2012 
Non-GAAP Measures Note 
Operating EBITDA and non-GAAP operating expenses are the non-GAAP measures in
this press release. These measurements are not recognized under generally
accepted accounting principles (“GAAP”). 
Operating EBITDA represents loss from operations prior to adjustments for
depreciation/ amortization, non-recurring items and other income or expense and
tax. However, other companies may calculate operating EBITDA differently.
Operating EBITDA is not intended to represent cash flows as defined by generally
accepted accounting principles and should not be considered as an indicator of
cash flow from operations. We have included information concerning Operating
EBITDA in this press release because management and our board of directors use
it as a measure of our performance. In addition, future investment and capital
allocation decisions are based on Operating EBITDA. Investors and industry
analysts use Operating EBITDA to measure the Company's performance compared to
historic results and our peer group. The reconciliation between Operating EBITDA
and net loss, the GAAP measure, is as follows: 
RECONCILIATION FROM OPERATING EBITDA TO NET INCOME QUARTER ENDED DECEMBER 31,
2012 
Non-GAAP operating expenses represent our operating expenses comprised of sales
and marketing, product development and general and administrative expenses
excluding depreciation and amortization and foreign exchange gain (loss). We
have used non-GAAP operating expenses measure to compute our Operating EBITDA. A
reconciliation of GAAP operating expenses to non-GAAP operating expenses is as
follows: 
RECONCILIATION FROM GAAP TO NON-GAAP OPERATING EXPENSES QUARTER ENDED DECEMBER
31, 2012 
Media contact details 
Mandar Narvekar, Investor Relations and Corporate Affairs Contact,
Rediff.com (India) Ltd.,
+91 (22) 61820000,
investor@rediff.co.in 
Glenn Wiener,
GW Communications (U.S.A.),
212.786.6011,
gwiener@GWCco.com 
Jay Morakis,
GW Communications (U.S.A.),
212.786.6037,
jmorakis@GWCco.com 
Contributed via: Bloomberg Publisher WEB Service 
Provider ID: 8efc06c9627641ed9443911be8e963d5 
-0- Jan/24/2013 12:35 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.