GiffGaff income?

iiydro

If I am right, GiffGaff just hit 302378 purchases (just topped up and found that's my order number).

302378 x 5 (min package) = £1, 511, 890 (6 digits, 1 million)

I'm sure I am right in saying that more has been paid than £5 for some people, I have.

To GiffGaff, congratulations on my speculated £1 million gross profit and on almost a full year.

To another prosperus year and numerous more delightful numbers 🙂

Well done GG staff!

billycraig

If that's the case, I'd say the average top-up would be £10-£15 and would therefore be £2m+

Fantastic stuff if that's right!

Do giffgaff publish a report on their earnings each year? I don't think they're a PLC and so I don't think they do, but if we're supposedly the guys running the place, we should get an insight?! Maybe someone can fill me in on this!

reddwarf

It's actually more than that as it doesn't take into account top-up vouchers bough from shops. I'd say majority of top-ups are made using vouchers.

andreww

They're a limited company so if you're prepared to pay the fee their accounts will, in time, be available from Companies House.

iiydro

Fully agree there. However I think it's limited, will mean if worst comes to worst and o2 kicks us off then they can back out until a solution is found. Doubt it though.

Yes your right and the new £20 will attract a lot of new customers over next year so around £4m, big bonuses for them. Servicing costs would be max £500k/year to be on the network.

kevvy57

@iiydro wrote:
Fully agree there. However I think it's limited, will mean if worst comes to worst and o2 kicks us off then they can back out until a solution is found. Doubt it though.
Yes your right and the new £20 will attract a lot of new customers over next year so around £4m, big bonuses for them. Servicing costs would be max £500k/year to be on the network.

what do you gauge your servicing costs on

fancy breaking that down a little?

iiydro

I don't gauge it on anything.
Its a figure?
I don't know the actual figure and I never will know.
For all I know, it could cost more or less.

reddwarf

14 member staff. Lets say for arguments sake the average wage for 10 of them is £20k each = £200k a year. The other 4 could be classed as the big fish and the average wage for them is £40k = £160k

14 Staff = £360k a year.

Rest of the cost would be the building (and running) cost + SIM costs + (EDIT - termination charge + payback + promotions)+ fujitsu contract cost. I'd have a guess and say the contract with Fujitsu to provide the MVNE services would mount to between £500k to £1m per year.

kevvy57

i hear a lot of talk about termination charges/fees.

i guess these are payments giffgaff have to make every time a call ends.

so surely this could vary wildly

iiydro

There is charges on everything GiffGaff are doing. Such as the £5 min goodybag, they require that otherwise they won't make enough to cover the costs or take a cut for wage etc. I admit I didn't take into account wage.

andreww

I would think they are probably running at quite a loss at the moment. Very rare for a big business to be profitable in year one. Just think how much they're paying out in payback - tens of thousands of pounds (and that's just mine!!!!) 😀

kevvy57

my point is the termination charge

i not sure how its worked out or what is it

but my understanding is any cross network calls giffgaff has to pay a set fee.

i am on an unlimited goody bag so i could in fact make enough calls to make giffgaff a loss by making hundreds or one minute calls each day

reddwarf

@kevvy57 wrote:
my point is the termination charge

i not sure how its worked out or what is it

but my understanding is any cross network calls giffgaff has to pay a set fee.

i am on an unlimited goody bag so i could in fact make enough calls to make giffgaff a loss by making hundreds or one minute calls each day

On the unlimited goodybag, you would only need to make over 750 minutes of calls to other mobile newtorks for Giffgaff to start losing money. Obviously this is disregarding termination charge that GG will receive on incoming calls.

kevvy57

only 750 minutes. thats not very much really. i wont be far away from that

so on your calculations surely the £20 goodybag, at 600 mins is a looser as well then

reddwarf

@kevvy57 wrote:
only 750 minutes. thats not very much really. i wont be far away from that
so on your calculations surely the £20 goodybag, at 600 mins is a looser as well then

GG actually gamble on people making calls to the same network (O2) and to landlines rather than other networks. That's how they make their money. Also the incoming calls count hugely towards whether a customer is profitable or not.

khairul

I don't think that giffgaff are in loss.

If they were:
- they wouldn't have extended free internet FOUR times
- they wouldn't have upgraded the £10 goodybag from 100 to 150 minutes
- they wouldn't be offering even more minutes for simply forgetting x number of 'likes' on Facebook.
- they wouldn't have run the half-price sale, and extended it for a further month.

jamesdn

Lmao, I think some people are a bit too despserate to see the financial report 😀

reddwarf

@ khairul

I understand where you are coming from, however sometimes companies will go through aggressive drives to expand customer base even when making a loss. We all know that the more customers a network has the more profitable it will be. GG increased the number of minutes on the goodybag to stay competitive.

kevlarie

You have to kind of remember that giffgaff also have O2 on there back to help them out if they need them with cash etc etc as i was reading a thread about O2 and if Giffgaff folds. CLearly states on the link below that O2 is in to help if GG does need help and funding. SO i shouldnt worry about the funding or income. I think of things this way. Whatever GG is earning it is there business and not ours. But hey i have said my peace. and also included information about there funding etc etc. 🙂

“The business plan is for five years, and funding is in place from O2 for the life of that plan... as long as we hit our targets as we go along!”

http://www.allaboutsymbian.com/news/item/10509_Giffgaff_breaks_cover-will_it_.php

Here is the link about the funding and O2 Funding them.

http://community.giffgaff.com/t5/Join-Considering-giffgaff/If-the-bubble-bursts-what-then/m-p/133695#M5749

Hey i might be wrong and dont push in if i am wrong. Just presuming and reading other Threds/Posts

And also i may add most companys extend there tarrifs etc etc so they maybe get more customers or please them.

There is also that GG hasnt been doing a lot of advertising from my view. I only heard about it from hotmail i think. Or a website called tagged.

Also word of mouth is a good part of advertising that GG doesnt have to pay for but helps by extending or putting more offers on

khairul

http://o2careers.co.uk/business_areas/customer_directorate/customer_directorate.php