Sunday, January 29, 2006

About the economics of the business

One may wonder how does skype makes money out of its free service!
The fact is that Skype Out is thr main revenue stream from Skype and in fact its revenues already tell something about the business.

Skype is making around $116 million a year (according to the Ebay Financial Statement, $24 million in the 4Q05). This means $320 k per day.

If we consider that the business is growing at some 175,000 users / day, the revenues should be growing at a really fast pace.

In order to get an order of magnitude of this numbers I will be posting peers comparisson late today, I will also try to see if I can find some Skype revenue projections.

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