Quote:
Originally Posted by will76
AFF has always been a profitable business and still is. What is killing FFN now is all of the debt they paid to buy AFF and that Penthouse loses so much money. On it's own AFF still profits, and with some inteligent people running it and keeping them out of retarded lawsuits like (facebookofsex) AFF would be even more profitable.
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You are generally correct, but honestly the information filed in the initial attempts to go public in the past were not that encouraging, and the current situation isn't much better. 22% churn rate on subscriptions (aka 4 month retention) is very low when you are paying $100 plus for every signup.
Taking out the large note to pay Andrew and Lars off was just not good for business, and appears to have pretty seriously impaired the ability for this company to make money. Further, much of the current debt comes due in September next year, an amount of money that the company is unlikely to have. A credit crunch seems to be in the works.