Sulake made $74 Million from you last year...

[Myth]

Well I dont really buy credits.

[Blinger1]

What do you mean from 'us'? Don't you think that companies pay Sulake for them to advertise? :rolleyes:

[:-Mystical.Dave-]

Convincing people to pay for nothing, or rather for things with zero marginal cost to produce, is a great business model—in theory. In practice, there are so few examples to point to, and most of them are overseas, such as Helsinki-based teen virtual world Habbo. The virtual world’s parent company, Sulake, today reported some selective financial and user data for Habbo. In 2008, Habbo’s revenues rose 20 percent to $74 million (50 million Euros), and posted positive operating cash flow (EBITDA) of $7 million (4.8 million Euros). It was even slightly profitable on a net income basis as well, however the company chose not to disclose that exact amount.
Perhaps the bulk of revenues are being plowed back into global expansion or to pay the salaries of Habbo’s 300 employees (yes, 300). But its sub-10% margins so far are underwhelming. And Habbo is supposed to be one of the shining examples of a real business based on a virtual economy. It also makes money from advertising, but a substantial portion of its revenues comes from in-world gifting and virtual vanity items.





Source; TechCrunch

http://www.techcrunch.com/2009/03/30...d-advertising/

None of that is impressive. EBITDA is Earnings before Interest, Taxes (these are gonna greatly affect the net income), and Depreciation of Assets (which provides some benefit to the balance sheet and net income). Seeing as they have $74M in Revenues, and posting "a slightly positive net income" is not that good seeing as Costs are in the tens of millions. I would hope they post higher earnings, but the tech business is expensive even with Marginal costs of zero seeing as their product (furni) costs nothing to make. We learned analysis of all this in Intro Accounting @ Uni so once you take that stuff, you'll realize how these figures aren't too impressive.

[Vitara]

well I don't buy credits so its not come from me!

[Coldplay]

Was about the say a simpler version of the above.

Revenue isn't profit.

[tm]

Any other business with only a 'slightly positive net income' would more than likely be considered failing.

[Laggings]

Anyone want to make a new habbo with me? I'll split the 74M a year

I've never bought credits, and it's funny that people spend over 70M a year on them.

[AgnesIO]

Anyone want to make a new habbo with me? I'll split the 74M a year

I've never bought credits, and it's funny that people spend over 70M a year on them.

I'll take 10 mil if you like - that would settle me LOL

--

As others have sadly said, revenue isn't profit

[RareFish]

half of that is me.

I'd say only abput ten million from me.

Im suprised Habbo isnt super with all the money there making.

[Laggings]

I'll take 10 mil if you like - that would settle me LOL

--

As others have sadly said, revenue isn't profit

Yeah, but how much really would it take to run a 17 country hotel online business? It's free to do all the furni, just have to pay for domains and servers, plus the staff. I'd say they're making about 40-50M a year off us.