Rediff Q1 Results: CPM Rates To Remain Flat; No Traction In Mobile Revenues

As usual, we are bringing you the highlights of the conference call (transcripts here) between Rediff brass (Ajit Balakrishnan, CEO, and Joy Basu, CFO) and the analysts. Some key takeaways here. (Caution: There are no huge surprises. I think Rediff has to do some thing big to bring back the excitement. However, we will do a separate post on their email relaunch, something new thay have launched in the last quarter.)

Rediff classifieds
At the end of June 30, 2006, Rediff Classifieds had 149 categories of ads and more than 130,000 listings. So the management says the classifieds business is growing.

Rediff To Do Advertising Sales Aggressively
In order for us to grow the Indian online advertiser base and increase our depth of business-to-consumer and small-to-medium advertisers, we are focusing on developing three key channels: Direct Sales Agents, who recruit advertisers; Reseller network to service existing advertisers; and the self-enabling Rediff Classifieds platform, with an easy-to-use ad-creating a front-end upload tool.
Our own advertising sales team will continue to focus on more established brands, larger corporate houses, and major online and other ad agencies.

Advertising revenues break-up
Total advertising revenues were $3.03 million. Fee-based revenues were $1.04 million. Balakrishnan said that the CPM rates will remain flat for some time come. “You should expect flat pricing for some time.”

Mobile revenues
There has been no strength. There has been no particular strength since the last call. At this point in time, the revenue share is very unfavorable to external service providers such as ourselves, so there is really no change in that situation.

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