This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rediff.com's CEO Discusses F1Q13 Results - Earnings Call Transcript

I would now like to introduce Mr. Ajit Balakrishnan, our Chairman and CEO.

Ajit Balakrishnan



Good morning to everyone. It’s a pleasure to have you on the call and we appreciate your continued interest in our company. In the fiscal year first quarter 2012, India online advertising business was adversely affected because of continued weakness in the banking, financial services, insurance and consumer electronic segments, while we saw good traction in our online shopping segment with increased transaction volumes and improved margins. The interplay of these trends, and the effect of spending rupee vis-à-vis the U.S. dollar is reflected in our results, which show a decline compared to previous fiscal periods.

We like most others in the Indian online industry continued to feel the impact of the uncertainty in the global economy and spending in India continues to be tight particularly in the advertising market. 3G adoption has been slower to materialize than we expected, but there continues to be strong initiatives from operators and carriers to promote data driven mobile devices and services and to enhance India's broadband infrastructure investments in India's fibre-optic networks in particular are intensifying, and we're witnessing most evolve towards 4G services and long-term evolution technology. Many industries forecast over the several years remain bullish in India despite some of the near-term challenges we’re facing.

Onto our results and business overview, advertisers in India specifically in the banking, financial services, insurance, media and consumer electronics categories are facing challenging times and they’ve cut down their overall advertising spent. This has negatively impacted India advertising revenues, which declined in the 2012 first fiscal quarter by 28% on a quarter-on-quarter basis in dollar terms.

In addition to the lower spending by online advertisers, reduction in the value of the Rupee against the U.S dollar has resulted in a sudden decline in the Indian advertising revenues by 6%. So Sri will provide more information on this later.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs