Skype is Profitable
From eBay’s financial release:
“Skype delivered a third consecutive quarter of segment profitability, excluding the goodwill impairment charge of $1.39 billion. Geographically, all three major regions, Europe, North America and Asia exhibited robust revenue growth.
Skype net revenues totaled a record $98 million in Q3-07, representing a year-over-year growth rate of 96%. Skype had 246 million registered user accounts at the end of Q3-07, representing a year-over-year increase of 81%.”
Skype is making money, just not as much as eBay anticipated when they bought Skype.
I was at a large European telco yesterday presenting to members of their exec team. They were acutely aware of the eBay writedown, but not Skype’s bottom line: three quarters of profitability. They should be and are now.
