Hollywood Hunter

Chapter 607 Financial report and crisis

Remember in one second [End of the God Station] Mobile phone user input address: m.xinwanben.com

For security and privacy reasons, Simon doesn't plan to show the girls' lives for long. A week after the London Villa Girls webcast started, the Igreit Portal released a notice on March 8 that the live broadcast would end on March 31 for a month.

Simon initially only planned to stream for two weeks.

Taking into account the promotion of this phenomenal live video broadcast to AOL, Igret and the entire computer and Internet hardware and software industry, the broadcast time was extended to one month. A month later, the girls' public enthusiasm has cooled, and Igrit has completed detailed testing and data collection of the webcast technology.

During the period from the end of February to the beginning of March, with the turmoil caused by the girls in London, many companies in the Westeros system successively released a series of financial report data, or the financial report for the whole year of 1993 calculated according to the financial report cycle according to the calendar year, or It is the single-quarter financial report of the last natural quarter of 1993.

Daenerys Entertainment Group, which is promoting the IPO plan, and the three giants of Cisco, America Online and Igret Internet industry have become the four most concerned companies in the Westeros system without any suspense. The financial reports of the four companies Periods happen to be calculated in terms of natural years.

Cisco was the first to report earnings.

On February 25, Cisco released its 1993 annual financial report through the Igreit portal.

With the rapid growth of the Internet industry on a global scale, Cisco also completed the extensive distribution of its own products on a global scale in 1993.

Even in order to avoid being affected by factors such as monopoly allegations and overseas country protection policies, Cisco's market share in the global router and switch field in 1993 dropped from more than 95% when it was just listed three years ago to about 75% in 1993.

However, this new technology company, which exploded rapidly with the rise of the World Wide Web, still achieved a revenue growth of 135% in 1993, and its annual revenue increased from $2.63 billion in 1992 to $6.19 billion in 1993.

In the early stage, for the consideration of technology research and development and market development, Cisco's net profit margin in 1991 and 1992 was maintained within 10%. With the completion of the global market layout, the company's net profit margin in 1993 also increased to more than 10%, reaching 12.6%, and the net profit for the year was US$779 million.

Compared with the net profit of 252 million US dollars in 1992, the net profit in 1993 increased by 207% year-on-year.

In fact, the net profit margin of 12.6% is still seriously low compared to the comprehensive cost of Cisco products. Both inside and outside Cisco know that if they pursue profits as much as possible, the company can easily achieve a net profit margin of more than 20%, but no matter Simon himself , Cisco's management, and the majority of external shareholders are not lacking in the long-term vision, so I understand that Cisco needs to focus on expansion at this time, not the eager pursuit of profit.

The capital market was affected by Cisco's 135% annual revenue growth and equally astonishing profit figures. On the day the financial report was released, Cisco's stock price rose by 3.6%, with a closing market value of $57.6 billion, surpassing that of the food and tobacco giant Philip Morris. It is the second most valuable company in North America after the old industrial giant General Electric with a market value of $79.1 billion that day.

After a series of large and small corporate mergers and acquisitions and management equity incentives, Westeros' shareholding in Cisco was reduced to 46.3% in early 1994. According to the market value of $57.6 billion on February 25, Simon's holdings of Cisco shares are worth as much as $26.7 billion, more than any other rich person on the "Forbes" rich list.

On February 28, the last day of February, AOL released its 1993 earnings report following Cisco's.

AOL has also launched a global expansion plan. However, unlike Cisco, an Internet equipment manufacturer with relatively low overseas thresholds, AOL, which focuses on the telecommunications field, has slowed its overseas expansion and basically appeared in the form of a joint venture, so its business focus remains the same. Native to North America.

As of December 31, 1993, the total number of users of AOL in the United States reached 32.61 million, a year-on-year increase of 88%, which was lower than 125% in 1992. This is mainly because the Internet penetration rate in the original operating areas of AOL gradually increased. Because of the rise. Although the potential for subsequent user growth is still great, due to factors such as infrastructure and economic conditions, the speed of residents' access to the Internet has begun to slow down.

Even so, more than 30 million users have accounted for 71% of the total number of users of the World Wide Web in the United States, far exceeding any other Internet service provider in the United States at this stage.

Relying on such a huge user base, AOL achieved a total annual revenue of 9.15 billion US dollars in 1993, a growth rate of 136% compared to the 1992 revenue of 3.87 billion US dollars, which exceeded most Wall Street analysts. expectations.

However, AOL's loss in 1993 was as high as US$769 million, a year-on-year increase of 194% due to the huge investment in infrastructure equipment and adsl network upgrades.

AOL's losses were already expected, and the capital market did not react too strongly to it.

You know, after AOL issued $1.2 billion in corporate bonds last year, the total amount of debt is still only $2.6 billion. Compared with the company's huge market value of more than $50 billion, the corporate debt ratio is less than 5%, far lower than the same other companies in the industry.

with beauty

China Online is about to compete fiercely with local operators in areas such as the Great Lakes and the southern United States beyond the east and west coasts. It is expected that the loss in 1994 will expand, and may even exceed 1 billion US dollars.

Simon had known about this expectation last year, and the capital market knew it well.

Therefore, the huge loss in AOL's financial report data on the day that it was released still did not affect the rise of the stock price. At the close of the afternoon on February 28, the stock price rose by 2.7% throughout the day, with a total market value of 56.2 billion US dollars, which also exceeded Philip Morris. Second only to Cisco, which has a market value of $59.1 billion after the stock price continued to rise that day, ranking third in the list of U.S. companies by market value.

Also because of various equity operations, Westeros' shareholding in AOL dropped slightly to 65.5%, and the value of Simon's AOL shares reached $36.8 billion on February 28.

Just over a weekend, the value of Simon's holdings of Cisco's stock also increased from $26.7 billion on February 25 to $27.3 billion on February 28, and the book income reached $600 million in three days, more than he had in the past year. The $500 million or so in private spending on property, women, etc. is even more.

Simon's personal expenses do not actually need to be obtained by reducing his holdings.

Next, for Igreat, which has not been listed and has no IPO plan in the short term, Simon is not too eager to announce the financial report of this Internet company. Just like last year's growth of nearly 400%, even after the outbreak in 1992 Growth has slowed since then, but only in relative terms.

Igreit's specific financial report data is still very eye-catching.

Moreover, the media that pay close attention to new technology companies also pay the most attention to this last one among the three Internet companies affiliated to the Westeros system, Cisco, America Online and Igret. With fictitious data, Igret Corporation released a relatively simplified financial report on March 7 after consideration.

In 1993, relying on a series of popular Internet businesses such as software sales, yws services, e-commerce, online advertising, and software stores, Igreat achieved a total revenue of 5.41 billion US dollars, with a year-on-year revenue growth rate of 179%. The loss was US$393 million, a year-on-year increase of 182%.

The 179% revenue growth rate for the year was far lower than the 394% growth rate in 1992, but it also surpassed Cisco and AOL.

The loss of 393 million US dollars is completely within the acceptable range compared with the revenue growth of Igret. For people familiar with the more detailed financial report data, Igret's cash flow is healthier than that of AOL and Cisco. At the current rate of capital consumption, it is only last year that Goldman Sachs and Morgan Stanley bought Igre. The $1.5 billion paid for the 10% stake would be enough to keep the company afloat for at least another two years.

Therefore, the current debt ratio of Igreit, an Internet company whose revenue volume can already be squeezed into the list of the top 500 American companies, is still 'zero'!

Anyone with a little business experience knows how rare this 'zero' is.

The current Igreit is almost equivalent to the complex of new technology companies such as Netscape, Yahoo, Amazon, Google and other new technology companies in Simon's memory. The overall revenue scale of 5.41 billion US dollars is already available for the company's establishment years. Horror to describe. However, if the business is broken down, several of them have the potential to grow into a single corporate giant.

The outside world can only speculate on the specific revenue of Igret’s various businesses. Simon has obtained very specific data before the release of the financial report.

Of the total revenue of $5.41 billion, Amazon's online store's annual turnover increased from $620 million in 1992 to $1.36 billion in 1993, an annual growth rate of 119 percent.

The YWS division, headed by Carol Butts, was re-segmented last year.

ygritte dreamweaver, ygritte fireworks and ygritte flash and other basic tools for the world wide web have been reclassified as dedicated software departments. The $280 million in 1992 surged to $810 million in 1993, an annual growth rate of 188 percent.

It still did not directly publicize it as a cloud computing service, but continued to insist that ygritte web service (ygritte web service), that is, the revenue of the separate yws department after the split, also due to the substantial increase in market demand, the annual revenue reached 790 million. Dollar.

The reason why this part of cloud computing business revenue, which is more core than basic software, has not surpassed the software department, is mainly because Igreat does not want to prematurely expose the huge scale and cost advantages of its cloud computing technology. Service providers only offer slightly lower prices when competing, so they have not shown a price advantage that is too attractive for users for the time being. Many Internet start-ups are therefore more inclined to buy servers to build their own websites.

The Internet bubble will eventually burst one day.

Due to the broad market demand, many technology companies, including established computer manufacturers such as ibm, have begun to set foot in the most basic data center services, and have invested heavily in the construction of traditional large-scale server data centers.

It is conceivable that once the Internet bubble bursts, Internet companies will cut costs and even go bankrupt one after another, which will inevitably lead to a serious surplus of data center resources, and the competitive pressure of service providers will increase sharply.

The flexibility and cheap advantages of services will be revealed, and the accumulation of technology will become more profound and mature.

In fact, manufacturers such as ibm have already noticed the cloud computing technology of igreite, and have seen the huge cost advantage.

However, in order to protect their own hardware and service business, in the case that Igrete keeps a low profile and is not pressing step by step, the old manufacturers are not enthusiastic about following up this technology, and even instinctively resist. After all, the rise of cloud computing will inevitably lead to an impact on the hardware sales of traditional server manufacturers, which is precisely the core business of many established technology companies such as ibm.

On the other hand, for the cloud computing business, established companies are reluctant to follow closely, and even if start-ups see the broad prospects of this technology, due to the technical attributes that the larger the scale of the cloud computing business, the more obvious the advantages, small companies will also There is simply not enough strength to compete with Igret.

Therefore, the future Ygritte yws must be the same as the Amazon AWS in Simon's memory.

Just as Kodak refused to move closer to the digital age in order to protect the interests of its own film cameras and eventually went bankrupt, it is still the same principle. If you can't eliminate yourself, you will have to be eliminated by others.

Counting the $120 million in other businesses such as e-mail technology licensing, Carol Bartz is responsible for the Internet-based basic software and service business mainly for corporate users, which has accumulated a revenue of $1.72 billion, a year-on-year increase of 295% in revenue.

It has always been Simon's most important advertising business. Relying on the Igreat advertising affiliate program that started last year and the sharp increase in advertising demand caused by the outbreak of the Internet, Igreat's portal sites, social networks, search engines and advertising alliances are four. The large advertising business segment also achieved total online advertising revenue of $1.15 billion in the past year.

Although there is still a huge gap compared with the US traditional paper media industry's annual advertising industry value of up to 40 billion US dollars, the annual revenue growth rate of 313%, once exposed, will definitely make traditional media industry operators even more vulnerable .

The revenue growth rate of 313% also ranks first in Igreit's huge business matrix.

In addition, the sales revenue of Internet Explorer, which has always been listed separately, relied on the pre-installation of hardware manufacturers, sales through operator channels and ystore stores in the past year, and brought in 310 million US dollars to Ygrit in the world. The year-on-year increase was 33%. This growth rate is not only the slowest among all of Igreit's businesses, but also the share of IE browser software revenue in Igretech's total annual revenue has dropped significantly from 12% last year to 5% .

The slowdown in the sales of IE browser software is mainly due to the openness of the Internet, which has led to the rampant piracy of IE browsers. Some PC manufacturers who refuse to pay for pre-installation and many small Internet service operators inside and outside the United States, in order to save their budgets, simply privately or instigated them. Users actively use pirated IE software.

The attitude of the management of Igreat is to keep an eye on the large PC manufacturers such as HP and Compaq and the ISP giants such as America Online, and at the same time block the found network pirated software resources as much as possible.

Even so, the full-year revenue of $310 million actually benefited to a large extent from Simon's $10 pricing strategy.

The original Netscape browser cost as much as $50, which is actually one of the important reasons why the Netscape browser lost to Microsoft ie. Even without IE, the high price of Netscape browser and the open nature of the Internet will inevitably lead users to pirated or free browser software.

Now, Igret's price of 10 dollars for the IE browser is basically within the easy acceptance range of most users, and even overseas users who need to consider exchange rate factors will not feel too burdened.

Tim Berners-Lee and other management are still very interested in the income brought by IE, but Simon saw that this software is free from the gradual marginalization of the IE browser in the total revenue of Igret. The feasibility of the proposal, and the proposal will be formally handed over to the management of Igret for discussion after the financial report is released.

The ie browser software is free, and the most critical role at this stage is not only the promotion of the World Wide Web, but also to maximize the initiative in antitrust investigations that may be encountered in the future.

At present, many competitors and professional media have realized the unreasonableness of IE browser to fix the homepage of Igreit portal, and proposed that users should have the freedom to set the homepage at will after purchasing this software.

Similar excuses no longer apply as long as Internet Explorer is free.

Like the Android operating system in memory, Igreit invested heavily in the development of the IE browser, and gave users a free trial, which can naturally get some compensation in other aspects.

In fact, although Android is nominally free, the potential revenue that this mobile operating system brings to Google reaches tens of billions of dollars every year, and even allows Google to successfully complete the transition from the PC side to the mobile side, which is even more crucial. . In the era of mobile phone winners, another search engine giant on the other side of the ocean has gradually fallen out of the ranks of the top Internet giants due to frequent failures in the transition from PC to mobile.

In the IE browser software free program given by Simon, it is only free to download from the official website, and pre-installed by hardware manufacturers and telecommunications companies. Even if it is no longer charged according to the price of about 10 US dollars, Igreat can still pass the authorization service fee. A certain fee is charged for other reasons, so the free plan will not make this part of the revenue completely disappear, and it will even increase with the continuous outbreak of the PC and Internet industries.

Finally, the total revenue of businesses such as software game stores and online payment tools such as ystore, steam and ypay is 8

.7 billion, a year-on-year increase of 141%.

In this part of the business, in addition to the online payment tool ypay, which is very important and cannot be lost, the others are only carried out by Simon to enrich the Internet content resources, so they did not spend too much energy on it, and even can be used as a bargaining chip to actively give up when necessary.

In addition, for a series of Internet companies supported by the budding venture capital department of Igretech, because the shareholding ratio is generally less than 50%, the revenue data is not included in Igretech's overall revenue. In fact, these startups do not have much revenue for the time being, and the venture capital department itself is in a pure cash-burning stage.

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