Rediff FY09-10 Results: Revenues Decline 7.59 Mil $; Net Loss of 7.97 Mil $

Last financial year seems to have not gone down well with India’s largest online portal. Rediff.com has reported reported a net loss of $7.97 million for the year ended March 31, 2010. Though if you compare it to last year then it paints a picture that’s getting better as last year Rediff had netted a loss of $11.26 million.

rediff

And its not only the net profit. Overall revenues have also declined from previous years $25.43 million to $18.84 million this year. If you make a quarterly comparison then the last quarter of this year was relatively less damaging that last quarter of last year. Rediff netted a loss of $2.28 million this year compared to Q4 last year where it recorded a loss of $8.86 million.

So overall India revenues decreased by 34% compared to last year and even US Publishing business declined by 38%. Though the number of users continued to grow at Rediff as they saw a rise of 15% in userbase on a year on year comparison.

Rediff plans to invest about 1 to 1.5 million $ to increase userbase which it believes will inturn increase revenues for the company. Currently the company has a cash balance of 44.7 million $ which it hopes will be good enough to help them attract more users in the next 2-3 quarters.

5 Responses to “Rediff FY09-10 Results: Revenues Decline 7.59 Mil $; Net Loss of 7.97 Mil $”

  1. Rajeev Arora
    May 20, 2010 at 9:55 am #

    After a closer review of Rediff’s quarterly results for the last several quarters, it appears that the management of the company has no vision or business plan in place to turn the company. It has lost its credibility in the investors. It does not seem to feel any accountability towards the money it has raised from innocent investors/shareholders. The board has failed to fulfil its responsibility to preserve the shareholders wealth which it has failed. There is no corporate governance in place. The company has infact defrauded the investors by not appropriately investing the cash of 45 miilion. Instead, it is sitting on a cash balance and spending the cash to meet their own personal needs.

    I justed wanted to share my views based on the facts and i am pretty confident every other investor has the same views about the company. At the end of the day, it is the honesty and integrity that sustains and wins.

    Rajeev

  2. suresh
    May 20, 2010 at 6:44 pm #

    i agree with Rajiv. the only possibilty to enhance investor value is fire Ajit balakrishan he dose not deserved as Rediif CEO and handover Rediff to Yahoo or google.

  3. Sastry
    May 21, 2010 at 3:03 pm #

    Rediff Irritate Users with Bad Design and Advertisements .

  4. May 24, 2010 at 11:33 am #

    Frankly, whether we like it or not, Rediff is more or less dead. What amazes me is what is so distinguished about Ajit Balakrishnan to be deified as the Chairman of the Board of Governors of IIM Calcutta!

  5. Rajeev Arora
    May 25, 2010 at 1:40 am #

    If the CEO of Rediff has even a bit of respect for corporate governence and shareholdres and is honest to himself, then he should immediately resign from the board. The new CEO should be appointed in the forthcoming shareholders’ meeting.

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