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Rediff reports 24% drop in overall revenues at $3.84 mn for Q2 FY13

NASDAQ-listed Rediff.com has reported a drop
in overall revenues at 24 per cent to $3.84 million compared to $5.10 million in the
2011 fiscal second quarter. Net loss in the period decreased to $2.34 million
from $2.64 million in the same period last year. According to the company, its
core online advertising business in India has shown a positive quarterly
sequential growth of 7% in dollar terms, in the second fiscal quarter of 2012.

NASDAQ-listed Rediff.com has reported a drop
in overall revenues at 24 per cent to $3.84 million compared to $5.10 million in the
2011 fiscal second quarter. Net loss in the period decreased to $2.34 million
from $2.64 million in the same period last year. According to the company, its
core online advertising business in India has shown a positive quarterly
sequential growth of 7% in dollar terms, in the second fiscal quarter of 2012.

In the same period, revenue from
Rediff.com’s ecommerce business grew 20% on a quarterly sequential basis and
61% on a year on year basis, while maintaining a positive margin of 12%. Rediff’s
ecommerce offering also now includes 172,000 SKUs, which represents a 24.6%
increase over the comparable second quarter last year.  The number of vendors the Company works with
today has also increased by 22% for the same periods.

Additionally, Rediff’s News and information
service is now deliverable on apps for platforms such as Android and Windows,
while the flagship Rediffmail service is available on mobile platforms such as
Symbian, Java and Android. Local TV ad services are now available in 10 Indian
cities and the company has started recognizing its first revenues.

“There continues to be difficult economic
conditions which have curtailed our near-term growth, but we believe the
promise of the broadband revolution remains very much a reality.  We believe that the modest growth we are seeing
in our India online and ecommerce businesses, and the uptick in demand for our
News Search and RediffMail offerings, are early indicators that our strategy of
positioning Rediff for future growth is beginning to gain momentum,” said Ajit
Balakrishnan, Chairman and Chief Executive Officer of Rediff.com.

 “We are
actively managing our expense structure but continue to invest in areas we
believe will successfully position Rediff for the future, such as News Search,
ecommerce, and local TV advertising.  We
are also improving our website functionality to provide a more rounded offering
for both Indian consumers and our current and potential advertising partners,” Balakrishnan
added.

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