& cplSiteName &

Skype Targets $1B Revenues

Ray Le Maistre
3/12/2009
50%
50%

eBay Inc. (Nasdaq: EBAY) laid out its three-year roadmap for investors Wednesday, including projected revenues of $1 billion in 2011 for its VoIP services subsidiary, Skype Ltd.

eBay bought Skype for a whopping $2.6 billion in September 2005, when it was generating less than $25 million per quarter in revenues. (See EBay Buys Skype for $2.6B.)

In its most recent three-month period, the fourth quarter of 2008, Skype's revenues hit $145 million, with eBay stating that the VOIP services business had been profitable for eight straight quarters. Its total revenues for 2008 were $550.8 million, and it ended last year with more than 405 million registered users. (See eBay Reports Q4.)

eBay believes Skype will continue to grow. The online auction specialist noted in its roadmap that Skype is "expected to more than double its revenues to over $1.0 billion in 2011… Skype’s metrics continue to accelerate as the company further establishes leadership in free and paid internet-based voice and video communications, with growth opportunities in core consumer, mobile, businesses and platform. Skype’s leadership position has strengthened over the past year, driven by a new management team and the launch of many innovative products."

One major area of potential growth for Skype is in the mobile voice services market. (See Skype Goes Android, Skype Slims Down for Mobiles, and 3 Launches Skypephone.) But the packet voice services landscape will have changed significantly in three years' time, with other online big hitters looking to muscle in on Skype's territory, and traditional telcos looking to hold on to as many voice minutes as they can. (See Are Carriers Gunning for Skype? and Why Carriers Want to Compete With Skype.)



One rival is Google (Nasdaq: GOOG), which late Wednesday unveiled details about its Google Voice service, which has been developed using capabilities the Web services giant took on board when it acquired GrandCentral Communications in 2007. (See Google Buys Unified Services Startup.)

On its Official Google Blog, the company boasted that Google Voice "improves the way you use your phone. You can get transcripts of your voicemail and archive and search all of the SMS text messages you send and receive. You can also use the service to make low-priced international calls."

It may still be early days for Google's new voice app, but it might just have a say on whether Skype makes that $1 billion milestone as soon as 2011.

— Ray Le Maistre, International News Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
mgardner750
50%
50%
mgardner750,
User Rank: Light Beer
12/5/2012 | 4:09:27 PM
re: Skype Targets $1B Revenues



I don't know if it Widow Dressing, but I do know is getting more commerical.




My company is installing Vosky gateways the PBXs. These gateways route all intercompany calls around the world over SKYPE bypassing any traditional LD provider. My location routes the up to 4 LD calls at-áonce over skype without anyone knowing it. If more that 4 calls are going on, then it uses our normal providers.




All these calls generate-áSkype revenue.-á




-á-á-á


digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 4:09:27 PM
re: Skype Targets $1B Revenues



It's possible, of course, that eBay is pumping up Skype's sales growth potential in the hope that someone might make a decent offer to buy it - talk that eBay is looking to offload Skype has been around for a long time. Even Google was cited as a potential buyer at one stage.




But is eBay stuck with Skype now?




Ray




 


Featured Video
Flash Poll
Upcoming Live Events
September 17-19, 2019, Dallas, Texas
October 1, 2019, New Orleans, Louisiana
October 2-22, 2019, Los Angeles, CA
October 10, 2019, New York, New York
November 5, 2019, London, England
November 7, 2019, London, UK
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
All Upcoming Live Events
Partner Perspectives - content from our sponsors
Transform Beyond Borders to Lead the Innovation
By Ben Zhou, CEO, Whale Cloud
Reject Limits. Build the Future.
By David Wang, Huawei
China Telecom & Huawei Jointly Complete the World's First End-to-End 5G SA Voice & Video Call
By Jay Liu, Senior Marketing Manager, Cloud Core Product Line, Huawei Technologies
All Partner Perspectives