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Rediff posts net loss of $7.97 million for 2009-10; Revenues declines to $18.84 million

Rediff has reported a net loss of $7.97 million for the year ended March 31, 2010, as compared to a net loss of $11.26 million in the previous fiscal year. Revenues declined from $25.43 million recorded for the March 2009 ended year to $18.84 million in the 2009-10 fiscal year. During the March 2010-ended year, Rediff earned an interest income of $4.01 million.

Rediff has reported a net loss of $7.97 million for the year ended March 31, 2010, as compared to a net loss of $11.26 million in the previous fiscal year. Revenues declined from $25.43 million recorded for the March 2009 ended year to $18.84 million in the 2009-10 fiscal year. During the March 2010-ended year, Rediff earned an interest income of $4.01 million.

For the fourth quarter ended March 31, 2010, the company has posted a net loss of $2.28 million, as compared to a net loss of $8.86 million recorded for the corresponding quarter a year ago. The fourth quarter revenues increased by 11 per cent from $4.49 million recorded for the 2008-09 fiscal to $4.96 million in the 2009-10 fiscal year. During the March 2010 ended quarter, the company earned an interest income of $0.81 million.

India Online revenues for the 2009-10 year stood at $14.69 million, a decrease of 34 per cent compared to a year ago. Revenues from Rediff’s US Publishing business also went down by 38 per cent to $4.15 million. The number of registered users grew by 15 per cent to 89.5 million at the end of March 2010, as compared to a year ago.

“Advertisers in the Finance, Education, IT products, Electronics among categories who had stayed away or reduced their online budgets during the past three quarters are now back. This is reflected in our India Online advertisement revenues for the quarter increasing 29 per cent on a year-over-year basis and 15 per cent on a sequential basis. This increase in revenues is despite us foregoing all ads on our home page,” Ajit Balakrishnan, chairman and CEO, Rediff.com, has said.

“As in the past few quarters, we propose to continue investing 1 to 1.5 million dollars per quarter in the next 2-3 quarters to maintain the momentum in user growth. In doing this we hope to increase our user base and in turn revenues in the next few quarters. Our cash balance of $44.7 million as of March 31, 2010 ($46 million same date last year) allows us to meet our liquidity needs and to execute on our product development and investment strategy,” Ajit Balakrishnan has added.

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