Chapter 607 (1/2)
For the sake of safety and privacy, Simon doesn't intend to show girls' lives for long. A week after the live webcast of the London villa girls started, igritte portal issued a notice on March 8, saying that the live broadcast will end on March 31 and last for one month.
Simon initially planned to live only for two weeks.
Considering the promotion effect of this phenomenal video live broadcast on AOL, igrit and the whole computer and Internet software and hardware industry, the live broadcast time was extended to one month. A month later, the popularity of the girls has cooled down, and igritte has completed detailed testing and data collection of the webcast technology.
During the period from the end of February to the beginning of March, accompanied by the storm caused by the London girls, a number of Companies in the westrow system successively released a series of financial report data, either the annual financial report of 1993 calculated according to the natural year of the financial reporting cycle, or the single quarter financial report of the last natural quarter of 1993.
Danilisi entertainment group, Cisco, AOL and igritte, which are promoting the IPO plan, have become the four most concerned companies in the westero system without any doubt. The financial reporting cycles of the four companies are calculated according to the natural year.
Cisco was the first to report.
On February 25, Cisco released its 1993 financial report through igritte portal.
With the rapid growth of the Internet industry in the world, Cisco completed the global wide distribution of its products in 1993.
Even in order to avoid the influence of monopoly accusations and protection policies of overseas countries, Cisco's market share in the global router and switch field decreased from more than 95% when it was launched three years ago to about 75% in 1993.
However, with the rise of the world wide web, this new technology company still achieved 135% revenue growth in 1993. The annual revenue increased from US $2.63 billion in 1992 to US $6.19 billion in 1993.
In the early stage, for the sake of technology research and development and market development, Cisco's net profit margin was maintained within 10% in 1991 and 1992. With the completion of the global market layout, the company's net profit margin increased to more than 10% in 1993, reaching 12.6%, realizing a net profit of $779 million for the whole year.
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 with the comprehensive cost of Cisco products. Both inside and outside Cisco know that if it pursues profits as much as possible, the company can easily achieve a net profit margin of more than 20%. However, Simon himself, the management of Cisco and the majority of external shareholders do not lack long-term vision. Therefore, we understand that Cisco needs to focus on expansion at this time, Instead of rushing for profits.
The capital market was affected by the 135% revenue growth and the same amazing profit figures of Cisco. On the day of the financial report, the share price of Cisco rose by 3.6%, with a closing market value of US $57.6 billion, surpassing the food and tobacco giant Philip Morris, and becoming the second highest in North America after the old industrial giant Ge group with a market value of US $79.1 billion Companies.
After a series of large and small mergers and acquisitions and management equity incentive operations, westero's shareholding in Cisco decreased to 46.3% in early 1994. According to the market value of $57.6 billion on February 25, Simon's 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 followed Cisco to release its 1993 results.
AOL has also launched a global expansion plan, but unlike Cisco, an Internet equipment manufacturer with a relatively low overseas threshold, AOL, which focuses on the telecommunications field, has a relatively slow overseas expansion and basically appears in the form of a joint venture, so its business focus is still in North America.
As of December 31, 1993, the total number of users of AOL in the United States has reached 32.61 million, with a year-on-year increase of 88%, lower than 125% in 1992. This is mainly due to the gradual increase of Internet penetration in AOL's original business area. Although the growth potential of follow-up users is still great, due to the influence of infrastructure, economic conditions and other factors, the speed of residents' access to the Internet has begun to slow down.
Even so, more than 30 million users account for 71% of the total users of the world wide web in the United States, far larger than any other Internet service provider in the United States at this stage.
Relying on such a large user base, AOL achieved a total annual revenue of 9.15 billion US dollars in 1993, with a growth rate of 136% compared with the revenue of 3.87 billion US dollars in 1992, which exceeded the expectation of most Wall Street analysts.
However, because of the huge investment in infrastructure and ADSL network upgrading, AOL's loss in 1993 was as high as $769 million, an increase of 194% year on year.AOL's loss has long been expected, and the capital market has not reacted too strongly to it.
You know, after AOL issued $1.2 billion of 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 other companies in the same industry.
With AOL about to launch fierce competition with local operators in the Great Lakes, the south of the United States and other regions beyond the East and west coasts, the loss in 1994 is expected to expand, and may even exceed $1 billion.
Simon was aware of this expectation last year, and the capital market knows it well.
As a result, the huge losses in AOL's financial data on the day of its release still did not affect the rise of its share price. At the end of the afternoon of February 28, the share price rose by 2.7%, with a total market value of US $56.2 billion, which also surpassed Philip Morris, ranking third in the list of US companies' market value after Cisco's stock price continued to rise, with a market value of US $59.1 billion.
Also because of various equity operations, westero's stake in AOL dropped slightly to 65.5%. Simon's stake in AOL reached $36.8 billion on February 28.
Just after a weekend, the value of Simon's shares in Cisco increased from $26.7 billion on February 25 to $27.3 billion on February 28, with a Book income of $600 million in three days, more than his private spending of about $500 million on real estate and women in the past year.
Simon's personal expenses, in fact, do not need to get through the reduction of shares in hand.
Next, for igrit, which is not listed for the time being and has no IPO plan in the short term, Simon doesn't really want to publish the financial report of this Internet company, just like the growth of nearly 400% last year. Even after the outbreak in 1992, the growth began to slow down, but it is only relatively speaking.
Igritte's specific financial data is still very eye-catching.
Moreover, the media that pay close attention to new technology enterprises also pay the most attention to this last one among Cisco, AOL and igritte, which are three Internet companies under the westrow system. In order to avoid unlimited media exploration and produce all kinds of exaggerated fictitious data, igritte released a relatively simplified financial report on March 7 after careful consideration.
In 1993, based on a series of popular Internet businesses such as software sales, YWS service, e-commerce, online advertising and software store, igritte gained a total revenue of US $5.41 billion, with a year-on-year revenue growth rate of 179%, and a net loss of US $393 million, a year-on-year increase of 182%.
Although the annual revenue growth rate of 179% is far lower than that of 394% in 1992, it is also higher than that of Cisco and AOL.
The loss of $393 million, compared with the revenue growth volume of igrit, is completely within the acceptable range. For people familiar with the more detailed financial data, igrit's cash flow is healthier than AOL and Cisco's. according to the current capital consumption rate, only the $1.5 billion that Goldman Sachs and Morgan Stanley paid to buy 10% of igrit's shares last year is enough for the company to maintain its operation for at least another two years.
Therefore, the current debt ratio of igrit, an Internet company whose revenue volume has been able to squeeze into the list of top 500 US enterprises, is still ”zero”!