Hi Crew. Lots of catching up to do. RM, did I miss something in your translation of the PR?
"Russian domestic long distance revenues reached US $8.2 Billion in 1997, while international long distance calling generated $1.5 Billion."
"Let's say 98 revs instead of 9.7B$ (8.2$ + 1.5$) are only 5B$. Further, let's say that these numbers were all in rubles, and with devaluation the equivalent dollar amount is just 20% of that, so that makes it 1B$. Now, if Digitcom gets 10% of that revenue, that is 100 million dollars in revenue. Too high? OK, say Digitcom gets 5 percent revenue. That is still 50 million dollars in revenue per year!"
Seems like PR numbers reflect combined total domestic/int. LD revenues, not revenues for our partners St. Petersburg NIT/El-Ros alone. How would Digitcom get 5% of total revs (rubles, dollars or otherwise) of all Russian LD minutes? Even if the stated revenues were for our partnering companies, how could we expect 5% of their revenues?
This PR is exciting and shows that we are jumping through the proper technical and political hoops, but it would be that much more rewarding if we knew more in regards to actual financial structure of these agreements (% of revs., currency of transactions, etc.) and the profit margins achievable in Russia, before arriving at a figure for earnings per share from these particular contracts.
Jeff |
