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Rediff’s India online ad revenues declined 16% YoY for Q4 FY12

Rediff.com has reported an overall 18 per cent decline in
revenues in dollar terms on a year-on-year basis for the financial year 2012. However,
the portal saw a 68 per cent year-on-year increase in ecommerce revenues,
maintaining an 11 per cent gross margin. For the quarter ended March 31, 2012,
the India online advertising revenues declined 16 per cent in rupee terms on a
year-on-year basis.

Rediff.com has reported an overall 18 per cent decline in
revenues in dollar terms on a year-on-year basis for the financial year 2012. However,
the portal saw a 68 per cent year-on-year increase in ecommerce revenues,
maintaining an 11 per cent gross margin. For the quarter ended March 31, 2012,
the India online advertising revenues declined 16 per cent in rupee terms on a
year-on-year basis.

According to Rediff, India Online revenues were impacted by
11 per cent due to foreign currency fluctuations as the Indian Rupee weakened
vs. the US dollar in the comparable year-over-year periods. The Operating
EBITDA loss for the quarter ended March 31, 2012 was lower, at $1.20 million,
as compared to an Operating EBITDA loss of $1.29 million for the corresponding
quarter last year. Additionally, operating expenses for the comparable fourth
quarter periods declined from $3.97 to $3.49 million, a decrease of
approximately 12 per cent.

“The Banking, Financial Services and Insurance (“BFSI”) sector,
which accounts for a third of online display ad spends in India has reduced its
spending in the quarter ended March 31, 2012, resulting in a decline in our
India online advertising revenues in the same quarter.  Other sectors, most notably the FMCG, Auto
and Consumer Electronics segment re-allocated their advertising spend during
the quarter from TV and print to online, though the increase was not enough to
make up for a decline in spend in the BFSI sector,” Rediff said in a statement.

“The growth in ecommerce revenues is attributed
to our continued investments to improve search and browse functionalities, an
addition of a voice based call-centre support and improvements in the
efficiency of third-party logistics system. 
Lastly, we continue to invest in our Local Deals and Local TV ads
businesses, which hold much long-term promise, but remain in the initial stages
of growth,” the company has added.

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