Boston, MA 06/06/2014 (wallstreetpr) – Rediff.com India Limited (ADR) (NASDAQ:REDF) released its 4Q and full-year financial performance that showed somehow wanting results especially in the U.S. However, investors appeared to pay little attention to the U.S. business problems but instead looked forward to better results in the near future, just as the management promised.
The company’s CEO Ajit Balakrishnan observed that with the national elections out of the way in India, there is optimism that intensified government and industry investments will increase business opportunities for the company. On that note, the company expects bigger broadband and Internet penetration over the next couple of years. According to the CEO, the positive prospects will compensate for the patience that the company has exercise during the economic downturn.
In addition to the anticipated robust online activities that will improve its revenue, Rediff.com India Limited (ADR) (NASDAQ:REDF) also looks forward to identifying new cost-saving opportunities to increase its free cash and improve the bottom-line. Furthermore, the CEO said Rediff intends to intensify its reach and subscriber base. All these are part of a broader scheme to put the company on a long-term and sustainability grounds so that generating returns can be an everyday affair in the company.
The CEO promise and the clear roadmap that Rediff revealed served to cool the nerves of the shareholders even though 4Q and full-year results did not impress.
4Q financial data
In terms of rupee, Rediff reported 10 percent increase in overall revenue. However, in U.S. dollar terms, 4 percent decline was noted in 4Q revenue. The company generated $4.01 million in the latest quarter, yet it reported $4.18 million in a year ago quarter.
Although the company experienced strength in its fee-based revenue and online shopping, Rediff had little to show for traditional U.S. publishing business and online ad revenue, which offset the gains from the other segments.
Full-year performance data
Rediff.com India Limited (ADR) (NASDAQ:REDF) generated a total of $16.25 million in revenue. That compared with $15.66 million, suggesting 4 percent increase. The year also saw the company suffer from its U.S. publishing business, yet the online operations showed strength and hope.
In both 4Q and full-year trading periods, the company noted significant addition of new merchants. It intends to improve its online portal to make it easy for new merchants and subscribers to use.