Report says European market shows promise
The European .com industry has thumbed its nose at the doom-mongers, with many firms posting profits, according to a PricewaterhouseCoopers report '“ but they must not get complacent, PwC adds.
In the report, After the gold rush '“ the .com dilemma, PwC surveyed 400 pure-play .coms across Europe and found that some 57 per cent claimed to be making a profit. This despite a climate that saw 20 Internet companies shut up shop in the first half of November.
'Many expect their turnover to boom in the next 12 months with an average growth of a staggering 272 per cent,' says Nick Drewitt, director at PwC. 'More than half predict their businesses will move into profit after the first year of trading, while 57 per cent claimed profitability and 15 per cent were breaking even.'
'And the findings revealed that the nation of .coms never being viable is false, at least in the mind of businesses themselves.'
But despite the surprisingly bright results of the report, many .coms risk being overtaken by 'Old Economy' companies if they continue to dismiss tried and tested business practices, warns PwC.
Experts believe that e-economy players must take a leaf from the books of more stable organisations and implement sound business models and practices.
Source: PC PRO
