It gives me pleasure to updateyou on your company's progress for theyear 2018-19. Wehad a greatyear and 1 am delighted with the overall performance of the company.
The consolidated revenue for the financial year was Rs. 2577 crores compared to Rs.2420 crores in the previous year with a profit of Rs 444 crores compares to 407 croreslast year. The topline revenue and the bottom line remained consistent with the previousyear in spite of us excluding Lycos Inc. numbers in consolidation.
We will put effort to consolidate pending financial areas in the coming year. Threeareas distinctly stand out to us are:
a. Elimination of standalone bank debt in India
b. Work out solutions to out standing acquisition liabilities and litigations.
c. Put a global line of credit in place to improve cash flow and scale the business.
Video and mobile video continue to dominate in contributions to our advertising andmedia division. We did have some surprise jump in the display advertising during theDecember quarter. While most of the industry was concentrating on the video business ourteams saw this gap coming up and planned well in capitalizing it. Another initiative whichgave us great mileage was our focus on traffic quality and the partnerships around that.We are part of the TAG (Trust and Accountability Group) alongside Pixelate and otherreputed traffic quality players in the business. This initiative helped your company inwinning some marquee deals and assisted in further growing the business.
Another important thing is that the team attended a good number of conferences whichwe do every year. That is our bread and butter which is how we develop our clientele andbuild our vendors. For instance we were present in Denver at the Digiday Conference andthe Mobile World Conference Congress in Barcelona as well. In terms of new products andnew technologies built this year. We have brought in header bidding to give us access tomore extensive traffic base which eventually translates to more revenue. We have starteda new group focussed on artificial intelligence and machine learning. The Dyomo subsidiarycame up with this new growth area. We have put together a team of 100 people working onvarious aspects of artificial intelligence and machine learning. We see significanttraction on the Agri Al and the healthcare Al.
From banners to big data/AI digital marketing has continuously adapted to meet theneeds ofcustomers and brands alike. Today with better technologies and robust digitalinfrastructure changes are happening veryquickly. Areas thatwe need to watch closely inthe coming months/years are:
Artificial intelligence has been a hot topic around town for a few years but the hypeisn't dwindling anytime soon. Al offers that which the best of the humans cannot. Take forinstance One of the implemented forms of Al chatbots. With the help of these simulatedhuman interactions consumers can find solutions no matter where they are or what devicethey're on. By the year 2023 the use of automation and Al will rapidly increase. Theapplications of Al in unchartered areas of busi-ness are fascinating; be it surveillanceand security or advertising or medical tech or even Agricul-ture. Al is changing how wethink about productivity or quality.
With an estimated $46 billion going towards programmatic advertising in 2018 Theexpectation is that programs will buy 86% of all digital display ads by 2020. This shifttowards automation pro-vides a more seamless efficient and accurate approach to paidmedia while simultaneously lower-ing customer acquisition costs.
With the introduction of Siri Alexa Cortana and Google assistant the users speakdirectly to their device instead of typing a request. As consumers adopt and begin to usevoice assistants more and more text- based search optimization ofwebsites will have to beredone to recognize voice searches.
Influencer marketing has become the equivalent of word-of-mouth marketing today.Consumers of today are known to trust people more than product brands. This trend has keptthe Influencer marketing buzzing through 2018 and 2019.
In essence we will focus on staying course with digital media and marketing whichcontinues to be the mainstay of the company's business. We will consolidate long-standingdebt and acquisitionrelated issues this year. Artificial Intelligence and new technologyareas can open up lucrative opportunities for the company to scale further.
| ||M Suresh Kumar Reddy |
| ||Chairman and Managing Director |