VODWiz Hypothetical Earnings HHSE VODWiz
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HHSE VODWiz HYPOTHETICAL $6.87M Profits Per Year
Quote:
Not factored into the 2013 projections are revenues from the Company's exciting new Video-On-Demand website and IPTV (Internet Protocol TV Channel) venture with NanoTech Entertainment, which some analysts feel could generate more than $50-million in gross revenues during its first year of operations.
Wow, more than $50M.
Let us run some HYPOTHETICAL numbers. Using just $50M a year. Many of the Independent Movie Titles will go for $1 per view. But VODWiz will offer much more than just Independents. VODWiz will most likely also offer some big name Titles, as HHSE mentioned, to help build consumer awareness and acceptance to the site. The price on the bigger name Titles will be higher. To be conservative let us use an average Price Per View of $2.
50,000,000 / 365 = 136,986
136,986 / $2 = 68,493 Views Per Day
So 68,493 Views Per Day Average to reach $50M Revenue Per Year. Not an unrealistic number, especially if VODWiz really catches on. The potential reach of VODWiz is worldwide (having internet access).
$50M Revenue. Say the Supplying Studio gets half of Revenue, VODWiz gets the other half (Plus its "overhead" Fee). That is $25M per year. We know that HHSE / NTEK are splitting Revenues. Is that a 50/50 split? Who knows, I doubt it. But to again be conservative, let us use 50%. In that scenario HHSE would get $12.5 M Revenue Per Year.
Last Quarter HHSE had 80% PreTax Profit Margin. This is the beauty of the VODWiz concept. Ultra LOW Costs. NTEK is bearing all the Infrastructure, Hardware and Technical Costs. HHSE Costs will be minimal. Yet again, to be conservative, let us use a more down to earth Margin of 55%. This could actually end up being much higher.
12.5 x .55 = $6.87M
HHSE Pre-Tax Profits = $6.87M Per Year from VODWiz alone
Putting this in perspective. HHSE has Retained Earnings of about $3.3M in 3 years since going public January 2010. An average of $1.1M Earnings Per Year.
HHSE Average Earnings Per Year = $1.1M
HHSE VODWiz Earnings Per Year = $6.87M
VODWiz by itself would contribute 6.25 Times HHSE Average Annual Earnings Per Year !! Whatever the actual numbers turn out to be, undoubtedly VODWiz is going to earn HHSE and it's shareholders a nice chunk of change.
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