Quote:
Originally Posted by fjtorres
Remember, that is off the gross.
From that $5B or so you have to subtract salaries, operating costs, royalties, overhead, and all their other expenses (a lot of which are fixed year to year). And then remember how they got to that point: 10% drop in ebooks (50% net margin) and a sight growth in pbooks (20% net margin).
On a year to year basis, the BPHs get to pocket maybe 9-10% of their gross so that 10% drop in ebooks could conceivably cut their net profits in half. Their bosses across the pond are not going to be writing that off as just a glitch.
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The article says NET revenue. So that is after all bills are paid.
Either way if something drops 5% then it is mathematically impossible for something else that depends on it to drop 50%.
Note I said mathematically.
Doing a little quick math here. With 2014 being 100. That makes 2015 being 95.
So for income we have 100-90% for bills and miscellaneous tax deductions.
The next year we have 95-90%.
2014 saw the guy make $10.
2015 saw the guy make $9.50.
That is nowhere near 50%. That is a loss of 50 cents on the hundred.
Slight difference but it is a 50. That is .50% not 50%
My apologies to Diap for the math.
This post does not take into account, creative accounting.