I thought it would be interesting to take a look at the results of AFN (ADFN) – a site that many many people use daily, but may not have taken a look at financially. IIRC, it is a share owned by Terry Smith, although it obviously doesn’t fit the style for which he is better known. There is a great deal of “network effect” in the company, but alas, never any profit.
Here’s the latest RNS: http://is.gd/hdH0yT
Revenues were £1.6m in 2001, rising to £8.5m in 2012. The company typically makes losses in the region £0.1m to £1.3m.
Some other quick highlights:
* EBITDA from continuing operations was £108k
(2012: loss £362k)
* loss for the period £539k (2012: loss £1.7m)
* registered user bases 2.8m (2102: 2.6m)
It employs 37 people, down from 60 last year. So each employee generates about £230k in revenue.
Some of the narrative in the RNS is quirky in places, and somewhat amusing … like this little gem: “It would be nice to have equity markets back in fashion”. All Hail the Bull Market! I also like this one: “ADVFN is determined to be an overnight success one day.”
One odd thing about AFN is that there is no discussion board on AFN about AFN. Earlier this year I had considered the option of taking out membership to AFN, really more as a “thank you” for all the profit I perceive that I’ve made by following discussions on the boards. Unfortunately, I nixed the idea when I found that they wanted a recurring credit card charge. To cancel it, I would have to write them a letter. Not cool, guys! There’s no way I’m going to let them dip into my credit card from now until the end of time unless I have to jump through hoops to cancel it.