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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

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