India based Rediff.com (NASDAQ:REDF) said its advertising revenues took a hit during the quarter, hurt by the economic slowdown, and revenues were further impacted by the falling Rupee versus the US dollar. The company lost about 30 cents per American Depositary Share. Results also included an goodwill impairment charge related to the 2001 acquisition of print newspaper India Abroad.
The company noted a growing consumer resistance to intrusive advertising online, a user preference for simplicity in navigation, and the emergence of mobile phones as an internet access device. The company is responding to these trends through its new international website, us.rediff.com, which will require the company to increase its operating expenses as it develops the product and builds its brand. Shares of Rediff.com were off about 12% early Tuesday.
Chinese online gaming company Giant Interactive (GA) said its net income fell 20% quarter over quarter, to 15 cents per American Depositary Share. Active paying accounts for online gaming fell over 4% quarter over quarter, and fell nearly 15% from the same quarter last year. Average revenue per user dropped just under 8% compared to the same quarter last year. CEO Yuzhu Shi was optimistic, noting that results were in-line with guidance, and that both revenue and gross profit improved on a sequential basis. He said the company plans to launch the largest expansion pack to date for ZT Online in July 2009, and will launch ZT Online II in the second half of 2009. Shares of Giant Interactive were down just under 9% in early trading Tuesday.
Israeli retailer Blue Square (NYSE:BSI) was trading down over 7% Tuesday morning, after the company reported lower net income of 15 cents per American Depositary Share, as same store supermarket sales decreased over 7%. The company converted 39 of its branches to its new lower priced chain called "Mega Bool" while opening five new branches. CEO Zeev Vurembrand said that the quarter's results were better considering the recession and increasing competition.
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