MySpace says the Google guaranteed revenue deal is going just fine–for MySpace. Google, of course, says it’s a washout, but MySpace is pleased to report that that’s Google’s problem.
Other MySpace tidbits from the News Corp call:
- Murdoch: “Our internet platform is now delivering real profits from locked in search revenues [e.g., Google] as well as from advertising revenue growth as a result of our hyper-targeting initiatives.”
- Fox Interactive Media (most of which is MySpace): $233 million revenue; Google deal was $62M of that. Fim-sold ad revenue up 43% from last year, 41% from last quarter. (Apologies: Need to double check those numbers)
- FIM: 87% yevenue growth, $58 million profit improvement y/y
- “Adds confidence to our $1 billion revenue, and 20% profit target for the year.”
- What about Google blaming you for lousy monetization? Chernin: Google deal is guaranteed revenue for us, and Google knew deal would be slow at first, better later. “Their performance is no surprise.” But we’ll work with them to improve. Can Google back out of deal? “No.”
- What is mix between search and display revenues for MySpace? Chernin: Search is between about a quarter and a third of FIM revenues, and most FIM revenues are MySpace. Rest is display, performance ads.
- Chernin: MySpace revenue 85% domestic (“at least”, Murdoch chimes in). We see “Facebook growing in certain markets, but nearly as fast in monetization as we do.”
If we assume $200 million of the $233 million of FIM revenue is MySpace, then MySpace is on about a $750 million run-rate (Q4 probably seasonably strong). For comparison, Facebook has said it will do $300 million in 2009 revenue.
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