Listed Web companies struggle to make profit

Most new publicly listed online ventures in Australia have failed to produce profits over the past year, according to an industry report.

The first Deloitte Internet Profit Report reveals that although most Internet-based companies have reached their revenue targets over the past 12 months, marketing costs have placed online budgets under significant pressure.

The Deloitte Internet Profit Report looked at the forecasts and projections of 11 Web companies that listed on the ASX over the past 12 months.

The report found that four of six of the companies had achieved their revenue targets. Five were yet to report their first year's results.

Deloitte corporate finance national leader, Vincent Sweeney, said the report highlighted the difficulties involved in developing forecasts for a growing company in a fast-developing industry with little empirical data.

"It is of interest that of those companies that have reported actual results, most have achieved their revenue targets, but appear to have underestimated the costs in achieving their revenue streams," Sweeney said.

The companies involved in the report, including LibertyOne, Travel.com.au, ecorp, Swish, Reckon, Spike, 131Shop.com.au, HWW, EISA, ISIS Communications and Health Communications Network, all predict continued growth for the coming year. HWW estimates a growth rate of four per cent, while LibertyOne predicts growth to reach a massive 350 per cent over the next 12 months. Several of the other companies involved in the report are also confident their growth rates will be in excess of 100 per cent over the next year.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

David Smedley

PC World
Show Comments

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?