Vodafone’s CEO Arun Sarin tells Businessweek that he expects the combination of social networks, mobile advertising, and mobile video (along with other “advanced mobile applications) will generate 10% of the company’s revenue within three or four years. We’re thinking that’s rather optimistic.
We expect these services to generate 10% of our revenue within three or four years,” he says. Vodafone generated $29.4 billion in revenue and $6.6 billion in profit during the first half of the year, beating analyst forecasts.
We looked at their revenue projections – about $59.12 billion for the year ending March 2007 and $62.29 billion for year ending March 2008. At an average annual growth rate of 5%, the company could have sales of around $70 billion by 2010. In other words, 10% of the company’s revenue would work out to about $7 billion. Yikes…. that’s just a little less than what Google is estimated to make in sales this year. That is a lot of money from those advanced mobile applications!
Chew on that, while you chew that turkey! Happy Thanksgiving all!