Rediff.com has posted a loss! Again. That would be the
20th 19th straight quarter of losses, if you haven’t lost count already. The company, which listed at the Nasdaq back in 2000 and was hailed as the next big thing from India at one point of time said on Wednesday that net loss, at $2.32 million for the fourth quarter of 2013, was up 63% from the year ago period.
Rediff’s revenues also went down marginally to $3.54 million in the quarter. On an annual basis, revenues declined 21% year on year to $15.66 million for the year ending 31 March 2013.
Take a look at Rediff’s Revenues & Losses over the last 9 quarters.
This time around, Rediff says that revenue slowed because of the decline in company’s Newspaper Publishing business and India Advertising.
While Rediff, led by Chief Executive Officer Ajit Balakrishnan, has been trying to improve margins by controlling costs, what it really needs is a solid relook at its business. Back in the day, when the company listed at Nasdaq, its shares were priced at $12 apiece. It now sells at about $3.
According to Balakrishnan, the company is working hard to improve “functionality and look and feel of our site.” Rediff’s home page, an important source of income for the company, recently underwent a pinterest like redesign. That didn’t go well with the existing users.
The company is also going to ramp up its ecommerce offering. “We believe this strategy will position us for future growth in the coming years, especially with the expected improvements in broadband infrastructure in India,” Balakrishnan said.
As it bides for the broadband revolution to come its way and make everybody
high happy, Rediffmail is a shadow of its past. Just like its share price, which peaked at about $18 in April 2011.
As we had written some time ago, its just that as a company, there seems to be a lack of direction, or coherent strategy. Any one product (of the many it launched) could have been a winner.
But at Rediff, there seems to be too much happening, in too many different directions.