Rediff Q2 Revenue Shows Slump, Traffic Flattening?

Rediff’s quarterly revenues have stared showing signs of downturn.

Here is a quick snapshot:

  • India Online services are down 2% to 5.62mn$ [Gross margin: 83%]
  • US Publishing services are down 20% to 1.7mn$ [Gross margin: 53%]

Though Rediff’s India revenues have gown up by 5.5%, but weakening rupee’s impact did erode the overall growth.

Overall, Rediff posted a net loss of %0.42million in Q2 – and that’s surely not a good news.

Interesting to note that total number of advertisers remains at 261.

Rediff Traffic: What’s Up/Down

Rediff claims a total user base of approximately 72 million (monthly growth ~8.6% over the prev quarter) and is relying heavily on it’s newly launched initiatives:

Traffic Data:

As per comscore’s Sep ’08 data:

  • 9,319 Total Unique Visitors (000)
  • 1,432 Average Daily Visitors (000)
  • 11 Average Minutes per Visit
  • 8 Average Visits per Visitor

Let’s look at the data trend for the complete picture:

  • Average Daily Visitor stat seems to flatten ..or has started declining?
  • Ditto with Total Pages Viewed
  • What about engagement? – let’s look at avg pages per visitor :

The biggest challenge for Rediff is that it’s a disconnected/disjointed portal and doesn’t have a strong social graph (most used features are it’s homepage/content, email service without any common reason for users to connect to other rediff users) – lack of strong community keeps it in a relatively weaker position against Google, Yahoo, Orkut and Facebook of the world.

The next few quarters will be testing times for the portal as Display Ads Pricing has gone down by 27% (in US) and Indian advertisers too have slashed their budgets.

Is Rediff innovating enough to sustain the downturn?

What’s your opinion?

Download Rediff’s Jun-Sep 08 report

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