Skip to main content

Platinum Studios 2007 Financial Report

Journalista! catches the release of Platinum Studios financial report for 2007.  Platinum owns major webcomics community DrunkDuck and publishes webcomic-to-comic Hero By Night by DJ Coffman.  Platinum reported net revenues of $1.96 million, of which arouund 1.3 million seem to be directly attributable to Hollywood options on Platinum IP.  There's more details at Fox Business and a summary of the 10-K report to the SEC at Yahoo Business.

 

Re: Platinum Studios 2007 Financial Report

Comparing Platinum to Amazon is apples to oranges, there's no key similarities between the two.

Yes, showing a loss is very normal for the corporate world, but take that into consideration with everything else in that report, and it's not as rosy as they're making it out to be.

Re: Platinum Studios 2007 Financial Report

Comparing Platinum to Amazon is apples to oranges, there's no key similarities between the two.

Yes, showing a loss is very normal for the corporate world, but take that into consideration with everything else in that report, and it's not as rosy as they're making it out to be.

Re: Platinum Studios 2007 Financial Report

Yeah, just like several large corporations don't clear profits in their opening years as a public company-- Amazon borrowed BILLIONS before they cleared revenue-- I know it's a different market, where Amazon was in books, but it's a good mention to those who might be shocked that corporations often don't make money with their expenditures the first few years public-- I'd argue that Platinum is in a different, but in my opinion better business model, with many irons in many fires as we speak.

Despite its coveted stock and skyrocketing sales, Amazon didn’t turn a profit until the last quarter of 2001. Many investors, spooked by crashing dotcom businesses and the September 11, 2001 terrorist attacks, had dumped Amazon shares: From a high of $106 in 1999, Amazon had plummeted to $6 a share at its nadir in 2001.

Even before the stock hit its low, Bezos knew Amazon’s survival would require drastic restructuring, so he cut 15 percent of the workforce, closed distribution centers, and borrowed nearly $2 billion from banks. In the meantime, Amazon continued to do business, even partnering with rival Borders to operate its online sales. Amazon finally produced a full-year profit in 2003. The stock has since hovered in the thirties and forties, as investors continue to question Bezos’ commitment to his core business (Amazon could even be losing money; it is notoriously secretive). There may be something to their concerns: While the 2006 holiday season was the company’s strongest ever in terms of sales, profits were about half the previous year’s (Amazon blamed taxes and tech expenses).

Re: Platinum Studios 2007 Financial Report

Xaviar Xerexes's picture

I don't see any reason to compare Platinum to Amazon myself.  There's almost no hook I can think of to make a valid analogy between the two.

Otherwise yeah, lots of companies lose money, some of them stop losing money and start making money and others keep losing money.   I didn't dig into Platium's 10k myself so I don't offer an opinion on it, just flagging it as of interest.

I run this place! Tip the piano player on the way out.

Re: Platinum Studios 2007 Financial Report

Couldn't resist correcting the guy. Misinterpretation of financial reports bugs me for some reason ;)

Re: Platinum Studios 2007 Financial Report

Read about their expenditures, and all the cost breakdowns. That's where it gets interesting.

Re: Platinum Studios 2007 Financial Report

Xaviar Xerexes's picture

I wish I had been able to dig into it but I see you already made some interesting points over at TCJ:

I feel the need to point out that Net Revenue does not equal Net Profit. In fact, Platinum lost 5.2 million in 2007, as defined here:  “As a result of the foregoing, the net loss increased by $848,938 for the year ended December 31, 2007, to $5,121,718 or -$0.025 per share, as compared to $4,272,780 for 2006.”  Their payroll alone exceeded their revenues.

I run this place! Tip the piano player on the way out.