Sify will announce its Q1 earnings tomorrow….an earnings preview note from Kaufman Brothers analyst Sameet Sinha says this about its portal division: “We expect this business to grow 13% Q/Q and 76% Y/Y to $1.2 million with 57.6% gross margin. This segment should benefit from continued growth at the Sifymax portal and revamping efforts at the core Sify.com portal. During the quarter, Sify acquired the rights to stream one-day cricket matches between India and England, which drove traffic to the site as well as iways. We view such content deals as awareness building opportunities and would not expect significant near-term financial benefits; on the other hand, content is expensive leading to some gross margin pressures in the near term (which we have accounted for in our model). As Sifymax works to differentiate itself from other portals, such content deals should be invaluable.”
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