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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by markvrdon Sep 29, 2011 8:48pm
400 Views
Post# 19101709

RE: RE: Let's Rationalize..

RE: RE: Let's Rationalize..The other factor, as well, is that if online grows faster (30%) than print revenue declines (10%) then there we`re at the point where a balance between gains and losses will occur.

i.e. right now, online is about 1/4 of revenue, print is three quarters.

If online grows by 30% and print declines by 10% (as in Q2 and first half), then we're actually already at the point where the two effect start to balance.   E.g. lets say we make $4 in total this year (for simple numbers) -- $1 is online $3 is print.
Below is how these progress from year to year.

Online        Print          Sum
1                3                   4
1.3             2.7                4   
1.69           2.43              4.12
2.197         2.187            4.38

I do think 30% growth every year online is probably optimistic.However, the point is that even with lower growth rates or tapering growth rates, we'renearing a point where online gains will start to balance print declines and stabilize revenue.

Mark
Bullboard Posts