From the Chairman's Desk
We are excited because we produced better results than last year. In digital alone weachieved almost 10% increase in revenues. We did well in a market that has been extremelychallenging and volatile because of some significant changes. Some big industry playersshifted. Banner advertising moved to video and mobile. Lot of competition fell off thecharts. It has been a very interesting and a very challenging year. One robust move thathelped us post these results for which I have to give full credit to our energetic teamis coming up with the solution of Brightcom - our video advertising solution which waslaunched during the year. This was a positive ambitious and well-strategised move in theway we launched it and timed it and we are very proud about how it was readily acceptedby the market. We were ranked number one last quarter on Video Seller Trust Index byPixalate.
Mobile and Video business have grown significantly. We participated in a Mobile WorldCongress at Barcelona in February which produced numerous leads and subsequent business.
On LYCOS media we have a few updates. LYCOS media is in the beta test of WebPublishing platform based on the WordPress. We ved to a new colocation centre with Verizonfacility - an mo important and long overdue move. We were cautious because there were alot of legacy servers legacy systems that we had to transition to new systems and we didit in stages.
We transitioned majority of domain registration business to Tucows to offer a moreefficient email and domains purchasing platform to users. It will relieve us from a lot ofday-to-day challenges there. We signed TinBu.com for newsfeed which has been a veryinteresting feed across entertainment sports politics and news. We launchedshopping.lycos.com in partnership with nextag.com.
Despite market volatility we posted an annual revenue of Rs. 2451.32 crores andearned a net profit of Rs.428.64 crores for the financial year ended 2017 against theprevious year's revenue of Rs.2255.90 crores and net profit of Rs.398.89 croresrespectively. The digital segment revenues grew by 9.78% and overall revenue growth is8.66% compared to last year.
Operationally speaking LYCOS Head Office at Hyderabad moved into a large open spacethis year. Brightcom the advertising division of LYCOS in Israel moved into a new spaceas well.
Our principal focus going forward continues to be building products & servicesrelated to three things digital marketing digital media and futuristic applications ofInternet.
In terms of geographic expansion now is the time to look at India as a solid marketfor potential growth. With strong in-house competencies we are well poised to embrace thechallenges ahead. Alongside we are also evaluating M & A strategy that can complementour core strategy.
Technologically speaking we will start to work at a deeper level on embedding thepower of Machine Learning Artificial Intelligence and Internet of Things into ourproducts in the coming year.
From the services and enterprise side most of these computing experiences are likelyto be built in the cloud. The cloud is more secure more cost effective and provides theability to take advantage of the latest technological advances.
From the consumer perspective what personal computing meant has transitioned fromdesktop computers in the late 90s to laptops a decade ago and then to mobile computing inlast 3 to 5 years; post that we saw the wearable computing craze picking momentum;However we have early indicators that say the time has come for the device to totally fadeaway from our lives and AI/Intelligent assistant will represent personal computingirrespective of the form factor. Exciting times!
We at LYCOS are gearing up to take on these upcoming changes and challenges surroundingthat. I sincerely thank our banks financial institutions shareholders and businessassociates for their consistent support. Our employees and partners are the real source ofour growth and success. I take pride in acknowledging and placing on record theircontribution and wholehearted commitment to the growth of the company. We are very excitedabout the future.
Chairman & Managing Director