BIG burrendong minerals limited - withdrawn

News: BIG Big Un says FY revenue from ordinary activities $14 million, page-202

Currently unlisted. Proposed listing date: WITHDRAWN
  1. 1,515 Posts.
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    The way I see it is that because the business is growing so quickly, actual expenses of production grew faster than revenue recorded (because of the much discussed deferral of revenue being recognised). If they keep their exponential growth, margins could continue to fall because they need to keep shooting/editing more videos each month, whilst most of the cash received is deferred. Perversely, if they stopped taking on any new business, their margins would shoot through the roof because there would be no more production costs whilst the deferred revenue would hit the P&L.

    So if I'm not mistaken, lower margins is more a factor of the accounting treatment and their rapid growth. Neither of these are a problem in the long term and as discussed above, actually a positive.
 
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Currently unlisted public company.

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