Dwango is another mobile content company that’s seen tremendous growth from a very small base. “For the full year the company had sales of $1.64 million compared to sales of $22,000 for the previous year…Quarterly gross profit was $346,000 compared to $12,000 for the same quarter last year. Gross margin of 40.0% improved substantially from third quarter 2004 gross margin of 30.1%. Gross margin increased on a quarter over quarter basis because the Rolling Stone mobile channel revenue increased at a rate greater than the minimum charges Dwango Wireless had to apply to cost of sales.”
However, the company is still losing money, and losing it at a faster rate – for fiscal 2004 the company’s net loss was $3.5 million compared with $1.9 million the previous year. But they did manage to secure another $23 million in private funding in 2004 and they’ve made some good partnerships, including ESPN, Beliefnet, Napster, Playboy, Rolling Stone and Minifizz.
Related stories:
–Dwango Finds Financing
–Girl Power Goes Mobile with Dwango
–Summus Announces 2004 Fiscal Year End Results
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