espaeth
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1 edit | reply to RR User
Re: not viable? really
said by RR User :
It's unjustified to suddenly ask force someone to start paying 3-4x to continue getting the same service, when even now before CBB TW is seeing increases in profit 11% quarter after quarter, year after year. I guess a reliable 11% is just not enough anymore... let's make it 30%. As a point of clarification, it was an 11% increase in annual revenue; their costs also increased, so their profit was not 11%. |
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Lazlow
join:2006-08-07
Saint Louis, MO | espaeth
If you look at their 10K you will see while HSI revenues increased by 11%, their HSI costs of revenues decreased by 12%. So you are correct their profit was not 11%, it was greater than 11%. |
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espaeth
Digital Plumber
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| said by Lazlow  :If you look at their 10K you will see while HSI revenues increased by 11%, their HSI costs of revenues decreased by 12%. So you are correct their profit was not 11%, it was greater than 11%. Direct costs (maintenance, capex for hardware, vendor costs) went down, but again you're not factoring in the other indirect cost line items from the 10-K.
You can't do a 1:1 correlation of product line revenue to product line direct costs. Product line revenue accounts for all income associated with that product, but the direct costs don't reflect the total cost of actually providing the service.
It's like relating the cost of your auto repair bill to just the parts on the invoice, but not factoring in labor costs. |
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Lazlow
join:2006-08-07
Saint Louis, MO
| espaeth
Total revenues were up 5%. Video revenues were down but HSI revenues were up. Video costs went up 6%, but HSI costs went down 11%. So if video was down, HSI was up, and there was no major upgrades done to the HSI system, where was the majority of increase in the non listed items? Probably in the switch from analog to digital on the video side and the rapid expansion of their VOIP product. |
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espaeth
Digital Plumber
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Minneapolis, MN
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| said by Lazlow :So if video was down, HSI was up, and there was no major upgrades done to the HSI system, where was the majority of increase in the non listed items? Annual salary increases for employees? Higher cost of healthcare benefits? Higher energy costs? Higher fuel costs for the vehicle fleet? |
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Lazlow
join:2006-08-07
Saint Louis, MO | All of which are there no matter how much an individual downloads. |
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espaeth
Digital Plumber
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join:2001-04-21
Minneapolis, MN
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| said by Lazlow :All of which are there no matter how much an individual downloads. True, but that's not what we're talking about? (relating 10-K cost values to revenue) |
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RR User
@rr.com
| reply to espaeth
The numbers in this article are from 1 quarter, as I read it. If I'm wrong, then I apologize as it would be my mistake. I don't see how those numbers would be annual. TW took in over 4 billion in revenue for RR alone last year. 1.1 Billion would be an epic loss if it was a yearly figure.
Taking in 1.1+billion this quarter would be a about an 11% increase, considering they took in a total of about 4.1 Billion last annual year. This puts them on track to raking in at least 4.4-4.5 billion this year, if they keep their pace moving along, but with all the negative press and pissed off users and epic scare from metered billing... They may not.
I for 1 will drop them in a heartbeat if they bring metered billing here. And would go the extra mile to spread the word around to all my friends and neighbors just to help TW feel the pinch.
It's pretty obvious why new customer additions have trailed off the last few weeks... That's the same time frame TW announced they would start metered billing trials in several different states/markets. I wouldn't be surprised that people in the proposed markets started calling in mass to cancel their services out of fear. That alone is probably what dug into their new sub adds toward the end of the first quarter. I dare TW to bring metered billing to even more markets, and watch their subs start dropping like flies. If they are clueless to what is so apparent here, they are completely inept. |
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