Lukus
Junior Member
Posts: 2,703
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Post by Lukus on Oct 12, 2021 16:28:05 GMT
Link me do.
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robthehermit
Junior Member
Subjectively amusing
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Post by robthehermit on Oct 12, 2021 16:31:39 GMT
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Lukus
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Posts: 2,703
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Post by Lukus on Oct 12, 2021 16:37:40 GMT
They made about half a million in profits pre tax for the year up to 31 December 2020. So not exactly millions.
I'm surprised they have quite so many staff though.
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robthehermit
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Subjectively amusing
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Post by robthehermit on Oct 12, 2021 16:44:32 GMT
And £2m in 2019.
None of which is to say that they shouldn't make profits, of course they should. Just that the ad blocking doesn't really seem to be that problematic in the grand scheme of things, or indeed the lack of a subscription charge in previous years.
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Post by skalpadda on Oct 12, 2021 16:48:31 GMT
It's this wholesale freeloading mentality that has killed off the music industry. Sure, we had piracy even back then... But when enough people started to not pay for music, the result killed off a lot of bands. I'm trying to think of anything valuable in the music industry that's been lost because of piracy and I'm coming up blank. The industry itself hasn't become any more or less awful than it was 20 or 30 years ago, the music doesn't seem any better or worse, if anything there's more diversity now than ever. There are still plenty of gigs to go to (though prices have gone up). Streaming has done some damage to how music is made and presented, but streaming was inevitable eventually, with or without piracy. That said I do firmly believe in the general principle of paying for stuff you care about and want to see more of, whatever it is. I was never an avid EG reader but I chucked money at RPS for years, a lot more money than they could ever have gotten from me letting ads through. I don't think making my life worse by subjecting myself to a torrent of adverts is the way to go. I actively avoid ads; I don't read or watch them, I'm sure as hell not going to click any and I've never based my purchasing decisions on them. If everyone like me were to turn off their ad blockers tomorrow the result would just be a drop in the price per impression shortly after. |
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Lukus
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Post by Lukus on Oct 12, 2021 16:50:55 GMT
All businesses want to grow, maximise profits and prepare for the future and whatever changes that come their way. Markets change, trends change. Look at the effect of the internet on print journalism in videogames. It's all obvious with hindsight, but if there are signs that your industry is going to be unsustainable in the future because no one wants to advertise with you because your audience is blocking all your advertisements, then you need to find a workaround.
Good luck to them I say. But I haven't been their market in about ten years.
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robthehermit
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Post by robthehermit on Oct 12, 2021 16:55:27 GMT
None of us have, that's why they fucked us all off.
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Deleted
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Post by Deleted on Oct 12, 2021 17:01:32 GMT
Frankly they are fucked and may as well shut down now. Ads are getting more and more ludicrous, bit I understand why. Problem is EG when they stated they needed auto playing videos to survive and implemented them meant I turned on adblock for the first time. The ads went from annoying and taking up 70% of the screen space to taking up that much AND managing to be much more annoying.
Much like farriers and black cab drivers with the Knowledge their time is over. It is at the point where the cure (make money via ads) is just driving people away, it is past the tipping point. So they lost the 3p they made from me a month.
And their frankly insulting cost now is silly. It all just looks frantic last gasp.
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Post by qwerty9999 on Oct 12, 2021 17:50:57 GMT
They made about half a million in profits pre tax for the year up to 31 December 2020. So not exactly millions. I'm surprised they have quite so many staff though. So that's what? A third of a million after tax? And that's why we're not getting any new blood wanting to be journalists. If Eurogamer are one of the biggest (and best) videogame media companies on the internet, and they're not raking in the profits, imagine how awful it must be for some of the smaller players. And we're not even going to talk about those journalism graduates who are just entering the field, who want to make a name for themselves, and who want to forge a reputable career. |
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Post by qwerty9999 on Oct 12, 2021 17:55:05 GMT
Frankly they are fucked and may as well shut down now. Ads are getting more and more ludicrous, bit I understand why. Problem is EG when they stated they needed auto playing videos to survive and implemented them meant I turned on adblock for the first time. The ads went from annoying and taking up 70% of the screen space to taking up that much AND managing to be much more annoying. Much like farriers and black cab drivers with the Knowledge their time is over. It is at the point where the cure (make money via ads) is just driving people away, it is past the tipping point. So they lost the 3p they made from me a month. And their frankly insulting cost now is silly. It all just looks frantic last gasp. And who is going to take their place? See... Now we are entering the realm of slim pickings. |
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Post by qwerty9999 on Oct 12, 2021 17:59:31 GMT
None of us have, that's why they fucked us all off. I guess the following analogy comes to mind. People want to meet up with their mates at a local pub. However, no-one wants to pay for drinks, despite it raining and being really dark and cold outside. So the owner of the pub has no choice but to throw the people out. After all... Someone has to pay for the lights and heating. And last time I checked, a pub didn't refer to itself as a charity. |
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Post by Aunt Alison on Oct 12, 2021 18:03:37 GMT
And everyone goes round to neilka's gaff to talk about how the landlord was a cunt and the drinks were all watered down
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Post by qwerty9999 on Oct 12, 2021 18:06:09 GMT
And everyone goes round to neilka's gaff to talk about how the landlord was a cunt and the drinks were all watered down Yeah, but this isn't exactly a premium forum like what Resetera etc use. It's like going to a squatters house and shacking up there. With there being holes in the roof etc. |
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cubby
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Post by cubby on Oct 12, 2021 18:10:40 GMT
They have a turnover of £13 million, that's not small fry.
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Graxlar
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Post by Graxlar on Oct 12, 2021 18:10:53 GMT
Quick flick through shows them in a pretty decent position. Revenue is quite low but they have a good grasp of their overheads. Actually a slightly better look and it is a very good position for the company size. The 500k profit for 2020 was after redundancy costs of £240k and sunk costs for the expos if £200k. It means they are working on a roughly £1m profit a year off 10-11m sales so 10% PBT. This is a healthy percentage. I suppose the problems would lie in the ability to grow, ad revenue will not grow 20-30% YOY so you would need to look at other revenue streams for real growth. I suppose that is where the subscription model comes in. I am surprised that they believe the £72 per person sub will cover the revenue of website ads. Cash position is strong with external creditors being roughly 70% of cash in bank and staff costs are pretty under control. All in all, a healthy business that my only concern would be the growth ability. |
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Graxlar
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Post by Graxlar on Oct 12, 2021 18:11:48 GMT
They have a turnover of £13 million, that's not small fry. That is a small business. |
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Post by Reviewer on Oct 12, 2021 18:20:02 GMT
Because websites have decided that obnoxious ads that are plastered everywhere is the best way to get more money in. Every website is like Times Square for ads but without the fun and the added bonus of all the cookies and tracking. I’ve no objection to paying for content but it has to be high quality and interesting enough to pay for. Unfortunately a gaming website isn’t that important to me. If the choice was pay for it, watch loads of ads or not use it then I wouldn’t use it. And a lack of good journalists is not just a lack of money but because websites income is driven by ads, hence the clickbait articles and republishing of press releases. Finally, the music industry hasn’t been killed off. Well... If a gaming website isn't that important to you, then why are you posting in this thread? Someone said that the staff at Eurogamer didn't care about their community. I'd argue that if I have to contend with people who aren't prepared to pay me for my services and infrastructure, then I shouldn't have to care about them. No wonder Eurogamer closed down their forum. Because this thread, and your post isn’t just about content of a gaming website. I never said they should care about the community they had. Given their comments about the volume of traffic to the forum vs the rest of the website then I can see why. |
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Post by qwerty9999 on Oct 12, 2021 18:28:13 GMT
They have a turnover of £13 million, that's not small fry. Turnover means nothing... |
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Post by qwerty9999 on Oct 12, 2021 18:29:50 GMT
They have a turnover of £13 million, that's not small fry. That is a small business. Exactly... And a profit of half a million (pre-tax) is nothing. Mark Wahlberg can earn more than that for just a 12 second walk-on cameo. |
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deez
New Member
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Post by deez on Oct 12, 2021 18:34:43 GMT
But it's still a viable business turning a profit during the toughest times in its existence. I don't think they ever claimed to be some huge media empire, they've come from nothing in 20 years to make a living for a bunch of people. It's a good effort.
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Graxlar
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Post by Graxlar on Oct 12, 2021 18:36:40 GMT
But it's still a viable business turning a profit during the toughest times in its existence. I don't think they ever claimed to be some huge media empire, they've come from nothing in 20 years to make a living for a bunch of people. It's a good effort. Agreed. As I said, underlying profit before exceptional costs/income is about £1m a year and they are sitting on nearly £6m in reserves. So Reedpop are not draining the well dry on a yearly basis either. |
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Post by 😎 on Oct 12, 2021 18:36:43 GMT
While you’re doing all this napkin math and weird speculation, let’s look up the net worth of Reedpop.
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Post by qwerty9999 on Oct 12, 2021 18:36:54 GMT
But it's still a viable business turning a profit during the toughest times in its existence. I don't think they ever claimed to be some huge media empire, they've come from nothing in 20 years to make a living for a bunch of people. It's a good effort. Yeah... But they're one of the bigger fishes. Which should give some indication of how unhealthy the whole industry is. |
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Post by qwerty9999 on Oct 12, 2021 18:38:05 GMT
But it's still a viable business turning a profit during the toughest times in its existence. I don't think they ever claimed to be some huge media empire, they've come from nothing in 20 years to make a living for a bunch of people. It's a good effort. Agreed. As I said, underlying profit before exceptional costs/income is about £1m a year and they are sitting on nearly £6m in reserves. So Reedpop are not draining the well dry on a yearly basis either. If business went cold... How long could they keep the lights on for? |
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Graxlar
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Posts: 186
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Post by Graxlar on Oct 12, 2021 18:40:45 GMT
Agreed. As I said, underlying profit before exceptional costs/income is about £1m a year and they are sitting on nearly £6m in reserves. So Reedpop are not draining the well dry on a yearly basis either. If business went cold... How long could they keep the lights on for? Well 2 years to run out of reserves. If they lost all revenue, then about 4 months based on cash position. But then that’s pretty impressive for a company that size. |
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Post by Danno on Oct 12, 2021 18:43:10 GMT
It's a relatively niche website in a saturated and increasingly narrow market, wrestling with ad revenues drying up, that manages to employ a large number of staff, and still brings in a six figure profit. They won't float anytime soon, but that's a healthy business.
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Post by Danno on Oct 12, 2021 18:44:34 GMT
Agreed. As I said, underlying profit before exceptional costs/income is about £1m a year and they are sitting on nearly £6m in reserves. So Reedpop are not draining the well dry on a yearly basis either. If business went cold... How long could they keep the lights on for? Same as virtually any company, three months at best. Were you alive and cognitive in 2008? |
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Post by qwerty9999 on Oct 12, 2021 18:45:09 GMT
It's a relatively niche website in a saturated and increasingly narrow market, wrestling with ad revenues drying up, that manages to employ a large number of staff, and still brings in a six figure profit. They won't float anytime soon, but that's a healthy business. I'm surprised why Eurogamer don't have that many big names anymore... Shouldn't they be looking to get people like Jason Schrier onboard? |
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Graxlar
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Nervous and skittish
Posts: 186
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Post by Graxlar on Oct 12, 2021 18:46:09 GMT
If business went cold... How long could they keep the lights on for? Same as virtually any company, three months at best. Were you alive and cognitive in 2008? They would actually last a little more. They have good cash reserves vs their creditors and another chunk in receivables. As most of the cost are people related (and google) I imagine it would be possible to weather the storm for a bit longer. |
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Post by Danno on Oct 12, 2021 18:48:28 GMT
Same as virtually any company, three months at best. Were you alive and cognitive in 2008? They would actually last a little more. They have good cash reserves vs their creditors and another chunk in receivables. As most of the cost are people related (and google) I imagine it would be possible to weather the storm for a bit longer. Fair do's, I haven't looked at the accounts because I do that AFD anyway, but my overall point is valid, it's healthy. Not world shattering, but it's not going down the toilet soon. Unrelated point, can we have Muttley back as your avatar please? |
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