Quote:
Originally Posted by SensualPoet
Yes, and fresh capital was injected into Kobo in recent months. But, then again, Kobo launched in the US and the rest of the world less than 10 months ago. One does not expect a start-up to generate profits in the initial couple of years at a minimum. Kobo is run on a shoestring, relative to its rivals, and has become a serious contender in the e-reader space.
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After the Agency model kicked in. Kobo receives a minimum of 30% of every sale.
I would have thought the profit margin would be enough to keep from losing $10 million last quarter. That's $100,000 a day!
Kobo must have a lot of employees on their payroll. Or maintaining servers/IT personnel is more expensive than we realize.