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Jun 30
2008
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Shrinking Signage Losses.Posted by Nate in Untagged   |
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An article was posted today which outlined shrinking digital signage "losses."
Two UK-listed digital signage companies have reported shrinking losses for 2007.
Vision Media Group plc (VMG), the shopping mall digital signage network operator made losses of £4.6 million [US$9M] for the year ended 31 December 2007 (against a losses of £6.1M [$12M] for 2006). Since the year end, VMG has completed the acquisition of Screen Media Networks and finalized contracts with Clear Channel Outdoor and Merlin Entertainment.
MediaZest plc, meanwhile has posted a reduced loss of £497k [$1M] for the year ended 31 December 2007 (as against £989K [$2M] for 2006) as it has benefited from increased turnover (a 22% rise to £3.86M [$7.5M]) and improving margins (as technology prices have fallen).
I guess if you're looking to accentuate the positive this is great news! On the other hand, if we're realistic it will take at least another year or two for profitability. Is this a good thing? Well, I guess that all depends on end goals. If the ends justify the means then Media Zest and Vision Media may be on the right path.
Much like the recent Twitter fad, no money has been made in the short term. Strategically, it's genius. Network building can be some of the most cost intensive portion of any business. Hopefully as hardware prices continue to drop and efficiency increases, we'll see reports of "increasing profits" rather than "shrinking losses."