tag:blogger.com,1999:blog-15976765556007590672024-03-18T00:28:20.905+00:00marketsforISKa blog of my experiences and observations of making ISK in Eve Online, from the beginning - three separate periods starting each time from zero and new alts (May 2013 - February 2017, started again in March 2019 - September 2019, and now started again in September 2020 onwards)Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.comBlogger398125tag:blogger.com,1999:blog-1597676555600759067.post-28874440166872158682024-03-18T00:27:00.000+00:002024-03-18T00:27:35.333+00:00Month end update - February 2024<p><span style="font-family: verdana;">I made 75bn profits in February 2024. There was no</span><span style="font-family: verdana;"> </span><a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" style="font-family: verdana;" target="_blank">Oz Tank Show</a><span style="font-family: verdana;"> and so no distributions were made. Therefore my wealth rose by the 45bn to 1.293 trillion isk.</span></p><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /><b>Distributions<br /></b><span><br /></span></span></div><div><span style="font-family: verdana;"><span>These days, the aim is to distribute my profits to the</span><span> </span><a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a> or other ventures. Watching numbers go up once i got to a trillion wealth is somewhat boring<span>. Hence, my wealth will barely increase and any monthly surplus will all be given away at some point.</span></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So far i have given 260bn isk to the <a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a>.</span></div><div><br /></div><div><span style="font-family: verdana;">The show started in July and i have generated profits of 428bn in the July - February period and distributed 260bn.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><b><span style="font-family: verdana;">Four Omega Accounts to pay for</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Keeping 4 accounts on Omega cost me 7.0bn isk in February - that is as a result of taking advantage of the Omega / Plex deals when they come along every 2 months or so.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>A new Platinum Starter Pack on the New Eden Store</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">This was a great deal.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">For a 10bn outlay per Account i got 500k skill points and 2 MCTs for free or i got 90 days Omega at half price . . . . . . depends how you looked at it.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">As i <a href="https://marketsforisk.blogspot.com/2024/02/the-latest-platinum-starter-pack-deal.html" target="_blank">discussed in another post</a>, the Start Packs in the New Eden Store were reset and i chose to spend</span><span style="font-family: verdana;"> 40bn across my 4 Omega accounts which will generate me around 28bn isk from Skill Farming and means i have bought my normal 3 month Omega for all four Accounts for 12 bn instead of 24 bn isk.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I expect to realise the profits this month and so will be in a good position to determine the profits then.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">The basic numbers</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In February i had sales of 286bn isk vs January of 402bn. So a clear slowdown back to the December levels.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That is about 9bn sales per day which was the 2022 daily average but lower than 2023. For the last 6 months the Sales have been down on the same month 12 months ago.</span></div><div><br /></div><div><span style="font-family: verdana;">Item profits were 84bn isk which is a healthy margin of 29% (84/286). So, again, profitability is good. Much better than the 25% target i set.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The key output point here is that to grow profits i need to grow sales. The profitability i make is good.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The question is whether 2023 was a super normal year and i was merely seeing better sales than what i really should have or if something has changed for the worse since then.</span></div><div><br /></div><div><span style="font-family: verdana;">Taxes and Courier fees came to 32bn isk. That takes the Trading Profits to 52bn isk and so a trading margin of 18.0% (52/286) which is better than the 15% i target.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Then add in the 7bn plex cost to Omega 4 accounts takes me to 45bn profits made in February.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>What is needed to get wealth to rise to 100bn in a month?</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">To get 100bn isk of an increase in wealth before distributions i would need to make daily sales of 18bn isk . . . . . . so double what i am doing now.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I am pretty sure i wont get there on the current strategy so i am putting my mind to how else to earning isk.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">What i am selling</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">No change here. Same as usual - Implants, Blueprints, ship equipment.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I have a rule that the minimum profits have to be 100m isk. It is no use me buying items for 5m to sell them for 15m. The profitability may be great but that won't move the dials. That said, it is surprising how many items i can buy for 120m from Jita Sell Orders and sell for 220m in the other trading hubs. At that isk level, players re-equipping don't care about spending an additional 100m isk to save time.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Blueprints are doing better again. They are by far the slowest item i sell and the most common i need to update to avoid them being taken off the Sell Order after 90 days of being unchanged.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Implants are doing well though there is a general shortage of some like the Harvest Blueprint.</span></div><div><br /></div><div><span style="font-family: verdana;">Ship Equipment is ok.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Where is it all selling?</b></span></div><div><span style="font-family: verdana;"><b><br /></b></span></div><div><span style="font-family: verdana;">For the first time Rens was the best sales location doing 61bn isk of sales.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Dodixie and Amarr both did around 40-50bn with Jita close at 36bn.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Everything was down on January except Hek.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><span style="font-family: verdana;"><b>Manufacturing</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I do this opportunistically and i don't keep track of it. I don't (yet) do it systematically but i need to get a grip. I am sure there are many items i sell in the Trade Hubs that i could manufacture in Jita and so get a better in price vs buying them from Jita Sell Orders.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Planetary Interaction</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Started this up again to remind me how it works. Following the changes to volumes, i can keep my planets going for a long time before i need to pick anything up.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The ultimate aim is to do this in low or null sec.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Research</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I am experimenting with this to see if i can get it off the ground. The idea comes from a video by <a href="https://www.youtube.com/@strange_Net" target="_blank">Strange Net</a> where he discusses how he <a href="https://www.youtube.com/watch?v=e1jO25Su-1I" target="_blank">makes money from BPOs</a>. It requires the use of the Contract Market which i am not a fan of.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I have kicked it off with a few researched BPOs to see if i can make this work.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Station Trading</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">All in Jita. This is going ok. Sales were 37bn which is above average.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I still really need to ramp this up but again i don't yet have a systematic way of going about it. Similar story to Manufacturing.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">My idea of station trading is not buying items when they look cheap. For me, station trading is about sticking to the slow moving items and quite often i am the only person in Jita trying to sell an item. Almost always Selling for over 1bn isk.</span></div><div><br /></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Alpha Accounts</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">They have all now stopped trading. Other than Arnon and Alentene, all the other locations show little promise at this stage. I will keep them on but they will be dormant for now.</span></div><div><br /></div><div><br /></div><div><span style="font-family: verdana;"><b>Current Wealth</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><div style="color: #222222;"><span style="font-family: verdana;">Current wealth is <span style="color: red;"><b>1.29 trillion </b></span>ISK made up from:</span></div><div style="color: #222222;"><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Plex held as an investment 0bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for sale 60bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for use in business 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Omega brought forward 42bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Buy orders on the market 18bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">items for sale 1.39 trillion ISK</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">less a 20% provision 279bn ISK*</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">ISK in wallet 47bn ISK</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">When i add up my wealth, I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc. The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK or are used to generate isk that can be readily resold back onto the market. Any ships or skills or fittings etc i buy are counted as expenses in that month. The only exception to this rule is Blueprint Originals i use for manufacturing. They are held at cost.</span></div><div style="color: #222222;"><span style="font-family: verdana; font-size: xx-small;"><br />* I take a 20% provision against the items I am selling. Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK). For me, I want my wealth to be calculated at cost. I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold. Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold. In an ideal world I would value my sell orders at the value which I bought the items for.</span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-16444843319821940032024-02-22T01:51:00.002+00:002024-02-22T01:51:37.505+00:00The latest Platinum Starter Pack deal on the New Eden Store is a winner<span style="font-family: verdana;">As detailed in the New Eden News there is <a href="https://www.eveonline.com/news/view/15-off-plex-plus-free-skins#:~:text=New%20starter%20packs%20in%20the,through%20New%20Eden%20in%202024" target="_blank">a range of new Starter Packs for a limited time</a>.</span><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>The summary of the below</b>: means that for a 10bn outlay you are either getting 500k skill points and 2 MCTs for free or you are getting 90 days Omega at half price.</span></div><div><br /></div><div><div><span style="font-family: verdana;">Each starter pack can only be purchased once per Account but they are new - hence, if you purchased a Platinum Start Pack a few months ago you can still now purchase this one.<br /></span><div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>What do you get?</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">For the Platinum Pack, it costs 2000 Plex and you get:</span></div><div><div><ul style="text-align: left;"><li><span style="font-family: verdana;">90 days Omega</span></li><li><span style="font-family: verdana;">2 x MCT Certificates</span></li><li><span style="font-family: verdana;">Specialist 'Boost' Cerebral Accelerator</span></li><li><span style="font-family: verdana;">500,000 Skill Points</span></li><li><span style="font-family: verdana;">10 x Skill Extractor</span></li><li><span style="font-family: verdana;">Golem State Police SKIN</span></li><li><span style="font-family: verdana;">Paladin Imperial Jubilee SKIN</span></li><li><span style="font-family: verdana;">Leshak Metamateria Exotica SKIN</span></li><li><span style="font-family: verdana;">Vargur Yoiul Star SKIN</span></li><li><span style="font-family: verdana;">Kronos Caille Neon SKIN</span></li><li><span style="font-family: verdana;">Charon Vitalshift EGO SKIN</span></li><li><span style="font-family: verdana;">Orca Capsuleer Elite XIX SKIN</span></li></ul></div></div></div></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">It is not as good a deal as the </span><a href="https://marketsforisk.blogspot.com/2023/12/platinum-starter-pack-offer-for-48.html" style="font-family: verdana;" target="_blank">Platinum Pack deal in November</a><span style="font-family: verdana;"> where the Pack costs 1500 Plex and you got 650k Skill Points but it still makes sense.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Lets ignore the skins and focus on the rest.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I Omega my accounts so any deal that allows me to buy Omega at or below market prices and get something for free gets my attention.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Alternative 1</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The cost of 2000 Plex at 5m isk per Plex is 10bn.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">90 days Omega currently costs 1200 on the New Eden Store, which would cost 6bn isk today.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">If you chose to sell the 10 Skill Extractors right now to Buy Orders in Jita you would get 10 x 467m x (1-3.6%) = 4.5bn isk after taxes.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Hence, the 90 days Omega + the 10 Skill Extractors comes to 10.5bn isk vs the 10bn isk cost to buy the Pack . . . . . . <b><span style="color: red;">which means the 500k Skill Points and 2 Multiple Character Training Certificates are in for free</span></b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Alternative 2</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><div><span style="font-family: verdana;">The cost of 2000 Plex at 5m isk per Plex is 10bn.</span></div><div><span style="font-family: verdana;"><br /></span></div></div><div><span style="font-family: verdana;">if my characters earn 37.5 skill points per minute then over 30 days my 2 characters that use the MCTs will earn 37.5 x 60 x 24 x 30 x 2 = 3.2m. Add in the 500k skill points also given = 3.7m extra skill points. That requires 7 Skill Extractors to convert those to 7 Large Skill Injectors and then leaves me with 3 remaining Skill Extractors.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">If i sold those Skill Injectors and Extractors to Jita Buy Orders today i would get (7x838x(1-3.6%)) + (3x467x(1-3.6%)) = 7bn isk after taxes.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That therefore means i would be getting 90 day Omege for 3 bn isk vs the normal price of 6bn isk. <b><span style="color: red;">So 90 day omega at half price.</span></b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><div><b><span style="font-family: verdana;">Alternative 3</span></b></div></div><div><b><span style="font-family: verdana;"><br /></span></b></div><div><span style="font-family: verdana;">This one is for old characters that are in alpha status but can still achieve 37.5 skill point per minute when put into Omega Status.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Fire these characters back up again, apply the 3 month Omega and 2 MCTs and you effectively get 5 months of Skill Farming = 5 x 37.5 x 60 x 24 x 30 = 8.1m skill points. Actually you get (4.9m + 1.6m + 1.6m over the 3 characters in the Account). Add in the 500k Skill points to change that to 5.0m + 2.0m + 1.6m.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That takes 17 Skill Extractors to create 17 Large Skill Injectors. Therefore you would need to buy 7 Skill Extractors from Jita Sell Orders</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Selling those to Buy Orders in Jita gets (</span><span style="font-family: verdana;">(17x838x(1-3.6%)) - (7x492) = 10.3bn</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So, at 37.5 skill points per minute there is a very small 300m profit to be made.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">If you were maxed out you could achieve 45 skill points a minute which means you make 20 Skill injectors and need 10 Skill extractors = 11.2bn isk, or a 1.2bn isk profit.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Outcome</span></b></div></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I bought the starter pack for each of my four Omega accounts. I am likely to take the Alternative 2 route. So 40bn outlay will generate me 28bn isk from Skill Farming and means i would have bought my normal 3 month Omega for all four Accounts for 12 bn instead of 24 bn isk.</span></div><div><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-52704921396467647932024-02-16T03:02:00.000+00:002024-02-16T03:02:06.002+00:00Pearl Abyss Q4 2023 earnings call<div><span style="font-family: verdana;">Pearl Abyss, the parent company of CCP, had its Q4 results on Thursday 15 February.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The earnings call transcript is at the bottom of this post.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">To us we are interested in what they are saying about EVE Online.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">To everyone else Pearl Abyss is a South Korean game developer known mostly for Black Desert Online which is the most successful Korean massively multiplayer online role-playing game outside of Korea.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In recent times the company has been pushing back the launch date of its new games (Crimson Desert and DokeV) whilst at the same time its existing games are facing revenue pressures and the costs are seeing inflationary pressures.</span></div><div><span style="font-family: verdana;"><o:p><br /></o:p>On the day of these results, the shares rose 6% which I suspect reflects a launch into China for their main game Black Dessert Online, so that’s near term additional revenues, and their new game Crimson Desert being close to completion.<br /><o:p><br /></o:p><o:p><br /></o:p><b>Overall Results<br /></b><o:p> </o:p></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><o:p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhQxu0v3ODb-4wE_E_oAYlwNnqmMsEna9rnOZ2bVWDoYojz3acw6PntKpvta5ge18dpCTypDFRVDUGboROyncT0A3eVbEB4C5JjuTGTDS6SDGfWY_JV63drBy8hvUPvdU-2G2R7GV9ReZ4YrXg76cs1h1mv3CBC6FlA9QOOuFaAG4Wx9eHpqqRuL8cvBg4" style="margin-left: 1em; margin-right: 1em;"><img data-original-height="374" data-original-width="858" height="255" src="https://blogger.googleusercontent.com/img/a/AVvXsEhQxu0v3ODb-4wE_E_oAYlwNnqmMsEna9rnOZ2bVWDoYojz3acw6PntKpvta5ge18dpCTypDFRVDUGboROyncT0A3eVbEB4C5JjuTGTDS6SDGfWY_JV63drBy8hvUPvdU-2G2R7GV9ReZ4YrXg76cs1h1mv3CBC6FlA9QOOuFaAG4Wx9eHpqqRuL8cvBg4=w585-h255" width="585" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEh9nRYIkGRrxSmMv0_ufG-lsxTE6nBh4h1hHORa3QNi77fNVqZVvFl_8Ae-ZQuDJ0hLDB1YJVDWTrebTxnqQpo2RpQKmYUDWXhkdK6qEPBAzSuuYltc6by4FE_tNVwH7MRRc13jVz-Ko4VhcGxCPkB45jdOXx0SrhGfZ8Sxeb5CMZBRlz7VrSKJnBxn9s8" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="380" data-original-width="845" height="273" src="https://blogger.googleusercontent.com/img/a/AVvXsEh9nRYIkGRrxSmMv0_ufG-lsxTE6nBh4h1hHORa3QNi77fNVqZVvFl_8Ae-ZQuDJ0hLDB1YJVDWTrebTxnqQpo2RpQKmYUDWXhkdK6qEPBAzSuuYltc6by4FE_tNVwH7MRRc13jVz-Ko4VhcGxCPkB45jdOXx0SrhGfZ8Sxeb5CMZBRlz7VrSKJnBxn9s8=w607-h273" width="607" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div></o:p>Its Q4 results saw ongoing declining revenues and an operating profit loss.<br /><o:p><br /></o:p>Revenues fell 18% to 84 billion Won vs Q4 2022 (always best to compare to a year ago rather than the last quarter to iron out seasonal effects) which was a bit less than what was expected due to lower than expected Black Desert Online revenues.<br /><o:p><br /></o:p>Black Desert Online revenues fell 16% vs Q4 2022 to 60 billion Won.<br /><o:p><br /></o:p>Eve Online revenues (includes mobile) rose 15% vs Q4 2023 to 20 billion Won.<br /><o:p><br /></o:p>On costs: labour fell 5% to 41 billion Won with staff numbers down 9% to 1,324 (developers are 58% of all employees); Commissions fell 12% to 17 billion Won; Marketing fell 36% to 8 billion Won.<br /><o:p><br /></o:p>Pearl Abyss Capital (which I have never really understood what it does) had a 6 billion Won impairment charge.<br /><o:p><br /></o:p>The Operating Loss of 5 billion Won was higher than expected.<br /><o:p><br /></o:p>For Black Desert Online, management believe that their efforts in 2023 to make it easier for new players and new content added is having a positive effect citing at 17% rise in actual PC sales in Q4 and 13% rise in annual PC sales.<br /><o:p><br /></o:p>Management not really telling us when Crimson Desert will be launched though did say that the game test would be in the summer. Saying that game development is almost completed and now working on polishing it out.<br /><o:p><br /></o:p>The market is starting to think that the Q1 2025 launch date is under threat.<br /><o:p><br /></o:p>There are also question marks on the Black Desert Online China launch. The closed beta test has been done. Awaiting a Chinese license (to launch games in China you now need a license). However, the mobile version did not do well in China when launched.<br /><o:p><br /></o:p>Putting all this together, the market is reducing its profit expectation for Pearl Abyss for 2024 and increasing expectations for 2025.<br /><o:p><br /></o:p><o:p><br /></o:p><b>Eve Online / CCP in general<br /></b><o:p><br /></o:p>This is what we are interested in.<br /><o:p><br /></o:p>Mentioned once by the analysts that cover Pearl Abyss. </span><span style="font-family: verdana;">However, management talked about Eve Online a lot more in the call than before and expanded more in the Q&A section.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">On revenues, it was better than expected. Question marks remain over profits and i suspect we are not quite there yet - we will learn more when we get the full year Accounts in May.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Much more focus given on the call to the health of Eve Online and to new launches based off he Eve Online IP.</span></div><div><span style="font-family: verdana;"><o:p><br /></o:p>Revenues in Q4 2023 were 19.9 billon Won vs 17.3 billion Won in Q4 2022, a rise of 15%. Best to compare to a year ago rather than the prior quarter to iron out any season effects.<br /><o:p><br /></o:p>. . . . . and that is literally all the numbers data on Eve given in the presentation slides.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">To me, that was a surprising positive. Not sure what i was expecting but probably not a 15% rise. It has to be player volume related, the Eve Game price went up in May 2022 and so is long gone as a driver of revenues in our case here.</span></div><div><span style="font-family: verdana;"><o:p><br /></o:p>In the call, in answer to a question, management did hope that Eve will be making profits in 2024 which suggest 2023 was still in losses or at best low profits.<br /><o:p><br /></o:p>“<i>Until now, our CCP game has been servicing EVE Online and also has been developing games based on the EVE IP. From this year, there will be consecutive launchings of the games that have been developed, that have been in development and we have expectations that this will be a year where we can make profits.</i>”<br /><o:p><br /></o:p>The good news is that all this was better than what the market expected and so the analysts are pushing up their CCP revenue expectations for 2024 from 70 billion Won of revenue to 74 billion, a 6% increase.<br /><o:p><br /></o:p>In the call, management highlighted the 20 year length of the game (vs Black Desert at 9) and the CCP management working to attract new players by making it more convention and adding new missions for new players.<br /><o:p><br /></o:p>The Call mentioned the Havoc launch and Vanguard having its first play test in Q4.<br /><o:p><br /></o:p>Management noted that these efforts led to the highest numbers of EVE daily concurrent users in November during the past five years based on the same dates, and the daily revenues also recorded the highest peak during the past five years.<br /><o:p><br /></o:p>For CCP generally, the management are focusing on costs (closing down the Canadian studio, moving the London office to a lower cost location, reviewing their marketing suppliers).<br /><o:p><br /></o:p>And for CCP focusing on the global launch of EVE Galaxy Conquest this year, which is a casual mobile game. </span><span style="font-family: verdana;">Soft launching the mobile game EVE Galaxy Conquest in some regions.</span><span style="font-family: verdana;"><o:p><br /><br /></o:p>And plan to showcase Project Awakening within the first half of this year, following a recent confidential test.<br /><o:p><br /></o:p>There was a comment that may be nothing or very interesting (I added bold for effect):<br /><o:p><br /></o:p>“In addition, in the case of EVE Vanguard, which was already introduced and tested, we, through continuous development and content updates, plan to not only lengthen more time for user enjoyment, <b>but also are considering a proprietary business model line.”<br /></b><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Earnings Call Transcript<br /></b><o:p><br /></o:p>Company Participants<br />Heo, Jin-young<br />Joh Seokwoo, CFO<br />Kim Geong Man, CBO</span></div><div><span style="font-family: verdana;"><o:p><br /></o:p>Operator<br />(Foreign Language) Good morning, and good evening. First of all, thank you all for joining this Conference Call. And now we will begin the conference out of Fiscal Year 2023 Fourth Quarter Earnings Results by Pearl Abyss. This conference call will start with the presentation, followed by a divisional Q&A session. (Operator Instructions) Now we shall commence the Presentation on the Fiscal Year 2023, Fourth Quarter Earnings Results by Pearl Abyss.<br /><o:p><br /></o:p>Kim Geong<br />(Foreign Language) Greetings. I am Kim Geong from Pearl Abyss IR team. First of all, I express my deepest gratitude to the analysts and investors in and out of Korea for taking part in the 2023 Q4 and full year Pearl Abyss earnings presentation despite your busy schedule.<br /><o:p><br /></o:p>(Foreign Language) Before elaborating on today's business results, I would like to ask for your understanding regarding the following. The financial and business results contained in today's earnings release have been prepared for the convenience of investors and is subject to change depending on the final closing of our books. In addition, the accuracy and completeness of the financial and business results in the earnings results material are not guaranteed and the company is not obliged to give updates of the accounts given after the state, so please take these factors into consideration.<br /><o:p><br /></o:p>(Foreign Language) We have here with us at the earnings presentation today, Pearl Abyss CEO, Heo Jin-Young, CBO, Kim Geong Man, and CFO, Joh Seokwoo. We will first hear the business performance presentation highlights from CFO, Joh Seokwoo and then engage in a Q&A session.<br /><o:p><br /></o:p>Joh Seokwoo<br />(Foreign Language) Greetings. I am Pearl Abyss CFO, Joh Seokwoo. Thank you once again for taking part in our company's earnings conference call despite your busy schedules.<br /><o:p><br /></o:p>(Foreign Language) I would like to first cover the 2023 overview. The game industry in 2023 on the whole went through challenges due to the reopening after the end of the pandemic. In this situation, we made significant changes to our live service, made management more efficient, and implemented new pipeline investment. Black Desert implemented diverse changes with nine years of service. We changed and reinforced many outdated contents, which were more enjoyable in the past, but not anymore. Through diverse patches for user convenience and new user support, we tried hard to lower awareness that this was a game with a high entry barrier. In addition, we introduced new characters with new concepts that we did not attempt before and also introduced diverse character costumes, from oriental costumes to modern costumes.<br /><o:p><br /></o:p>Moreover, through the land of the Morning Light update, which had a Korean ambiance that was not attempted in the past, many users were able to experience a new landscape. Land of the Morning Light also changed the gameplay style and introduced a console type of raid combat, that was quite refreshing. In Q4 as well, we have been continuing these efforts through new class scholar updates and continuous convenience patches for our users. For consoles, we have also been overcoming many limitations, which occurred due to the console or console device limitations through technical enhancements, and have worked hard to provide joy of playing on a similar level to the PC version. Through these efforts, excluding the accounting deferral, we are seeing a solid revenue upward trend, including 17% Y-o-Y increase in Black Desert PC Q4 actual sales, and also 13% Y-o-Y increase in the annual total Black Desert PC actual sales as well.<br /><o:p><br /></o:p>EVE Online also implemented diverse changes with 20 years of service. We continuously work hard to attract new users not only by implementing diverse devices in order to improve the game's convenience to users, but also gave many missions so that new users can easily adjust. The havoc expansion pack which improved new contents and diverse game environments with a new battle system which breaks away from the existing framework and an interesting storyline provided immersive experiences to users that were playing. In addition, EVE Vanguard, which was developed as EVE online based FPS with the 20th anniversary of EVE, had the first play test in Q4. It was able to appeal to the gamers who were waiting for SF and EVE based FPS and attracted many returning users.<br /><o:p><br /></o:p>These efforts led to the highest numbers of EVE daily concurrent users in November during the past five years based on the same dates, and the daily revenues also recorded the highest peak during the past five years, leading to firm financial performance. Under the robust basis of live service, we continued investment in new IP and new titles. Crimson desert, through many demos for partners and media, is predicting the possibility of success. We are receiving many favorable reviews through actual demos and internally, we are confident that we can achieve significant results. In addition, through reflecting the abundant feedback that we have received, we are heightening our possibility of the game's success. After showcasing the mobile casual game, EVE Galaxy Conquest, which was made by utilizing EVE IP by the CCP of Shanghai office at the EVE fan fest in Q4, we have been implementing actual live tests in some regions through soft launching.<br /><o:p><br /></o:p>(Foreign Language) Next, I would like to walk you through our 2023 full year and Q4 operating performance. 2023 operating revenue posted KRW333.5 billion, decreasing 13.5% Y-o-Y. Operating loss posted KRW16.4 billion and turned to loss. Net profit posted KRW15.4 billion and turned to profit Y-o-Y. Q4 operating revenue posted KRW84.4 billion, decreased 0.6% Q-o-Q and operating loss and net loss each posted KRW5.5 billion and KRW4.4 billion and turned to loss, respectively.<br /><o:p><br /></o:p>(Foreign Language) I would like to explain in more detail regarding operating revenue in Q4. First, I will cover operating revenue for major IPs. Operating revenue for black desert IP in this quarter posted KRW60.1 billion, a 12% decrease Q-o-Q. Eve IP operating revenue posted KRW19.9 billion, an increased 24% Q-o-Q. In case of operating revenue by region, it posted 21% domestically 20% in Asia and 59% in North America and Europe. In case of operating revenue by platform, 83% was for PC, 12% for mobile and 5% for consoles.<br /><o:p><br /></o:p>(Foreign Language) I would now like to elaborate on operating expenses for Q4. Q4 operating expenses posted KRW89.9 billion, a 8.6% increase Q-o-Q. In case of labor expenses, it posted KRW40.6 billion and maintained the level of the previous quarter. For your reference, the numbers of employees as of NQ4 are 1324, and there are 765 developers, which is 58% of the total. In case of commissions, it posted KRW17.4 billion, a 21.4% increase Q-o-Q. In case of advertising, through efficient implementation of Cybers user events and banquets, we were able to post KRW8.1 billion, a 19.6% decrease Q-o-Q<br /><o:p><br /></o:p>(Foreign Language) Lastly, I would like to cover 2024 major highlights.<br /><o:p><br /></o:p>(Foreign Language) We plan to continue our performance through Black Desert and EVE's continuous changes and at the same time, improve profitability through efficient company operations. At the same time, we plan to focus intensively for successful launching of our new IP. For Black Desert, we will work to make an environment which is newer and can provide more enjoyable environments. In Q1, we are newly reorganizing PvP content through Guild League that you can enjoy 15 to 15, and through updates of siege wars with new rules. In addition, we are continuing to update user convenience improvements, that we have been doing from last year to promote the influx of new and returning users, and we plan to help them stay and settle.<br /><o:p><br /></o:p>In addition, we plan to accelerate the development of Land of the Morning Light Part Two, which was indeed very beloved. We will support also next generation console devices and we're working hard so that we can go beyond the limitation of existing devices, so more contents can be enjoyed on the console platform. We also have heightened expectations for China game license for Black Desert Chinese service, which recently had confidential tests. We are working with our publishing partner thoroughly, so that fast results can be derived when official service begins. EVE IP also is continuously changing. We are preparing for two new expansion packs for EVE Online. In particular, for these expansion packs, we plan to introduce user generated contents where users can directly generate contents, and we're preparing so that users can enjoy games in more diverse ways.<br /><o:p><br /></o:p>In addition, in the case of EVE Vanguard, which was already introduced and tested, we, through continuous development and content updates, plan to not only lengthen more time for user enjoyment, but also are considering a proprietary business model line. At the same time, we will work hard to improve the company's income through efficient operations. After closing down factorial games last year, we have our Canada studio, which is also closing down, which was preparing for indie game this year, and we're working hard to improve our company's cost structure. In addition, we will find areas and make improvements so that day-to-day costs can be efficiently saved, including changing the CCP London office location, so that more efficient work can be done in a bigger and more reasonably priced space. In case of marketing costs, we will also work with diverse partners so that our financial burden does not increase.<br /><o:p><br /></o:p>We plan to prepare to secure new pipelines. We plan to have the global launching of EVE Galaxy Conquest this year, which is a casual mobile game which meets the recent trends by improving based on the feedback, which came in during the soft launching period. In addition, we plan to showcase project awakening within the first half of this year, that we recently had confidential test for. We expect that these new projects will enhance the profitability of EVE IP based games, which have high loyalty. Most of all for a crimson desert, we will increase the possibility of success by expanding our contact points, including through user demos at diverse events in 2024.<br /><o:p><br /></o:p>In addition, since the development is being completed, we are considering appropriate launching time and we will prepare, so that we can have significant results, considering that you have been waiting for a long time. With stable service of live service, we made many preparations to create new IP. The global game market competition has heightened. Regulations for the labor market and game market has become more strengthened and it has become more challenging to secure developers than before. We are fully aware that many investors are concerned, since the preparation time has become longer than expected. We believe that in 2024, we will showcase and launch new titles that we had been preparing so far, and that this will be a year when we will significantly leap forward.<br /><o:p><br /></o:p>Utilizing ten years of Black Desert service and 20 years of EVE service know how, we will do our best so that our new titles will also be loved for a long time by many people. We will look forward to your continued interest and support. Thank you.<br /><o:p><br /></o:p>Unidentified Speaker<br />(Foreign Language) With this, we will conclude the Pearl Abyss 2023 Q4 and full year earnings release and start the Q&A session.<br /><o:p><br /></o:p>Questions And Answers<br />Operator<br />(Foreign Language) (Operator Instructions)<br /><o:p><br /></o:p>(Foreign Language) The first question will be presented by (inaudible) from Kiwoom Securities. Please go ahead with your question.<br /><o:p><br /></o:p>Q - Unidentified Participant<br />(Foreign Language) Thank you very much for the opportunity. I am (inaudible) from Kiwoom Securities and I have three questions. First, I would like to know in more detail about all the information that you can disclose about Crimson Desert, that you can't disclose to the market. Secondly, I would like to know about your top line gross goals for Black Desert. And third, if you have any new titles that you are planning to launch this year, I would like to know about them. Thank you.<br /><o:p><br /></o:p>A - Heo<br />(Foreign Language) Thank you very much for your question. For Crimson Desert, since we are developing it for single play, we are concentrating on heightening our optimization and completeness and are making our final touches. It has very vast contents and a very free playing area or a free degree of freedom, so it has taken a little more time than expected. However, currently, the development is very smoothly being done and we are making great progress in our finishing touches.<br /><o:p><br /></o:p>(Foreign Language) In addition, based on the feedback that we had actually acquired from many partners for the past year or so, we have been actually completing the game playing experiences continuously and we believe that now, we are at the level of quality that we had targeted. Accordingly, regarding the Crimson Desert demos that we had for our partners until now, we plan to actually expand them to B2C from this summer and start our full fledged marketing.<br /><o:p><br /></o:p>(Foreign Language) Regarding our launching period, we will start our full fledged marketing from the second half of this year, and we will heighten it until the end of this year, as we are currently planning. We know that you have been waiting for a long time and we also have been thoroughly making preparations for a long time. So we will do our best for a successful launch till the end.<br /><o:p><br /></o:p>(Foreign Language) Regarding more details about our launching period. In the process of our marketing within this year, we will do our best, so that we can give you more detailed schedule as time progresses.<br /><o:p><br /></o:p>(Foreign Language) Development time is taking a little more than expected, but all the people in our development team are doing their best in the environment that we're given for this long period of time. We are also truly wanting to launch as quickly as possible and we are focusing on our finishing touches intensively, so that we will do our best, so that we can come up with satisfactory results, and we will ask for the kind understanding from our investors as well.<br /><o:p><br /></o:p>(Foreign Language) I will answer your question about Black Desert. Regarding our 2024 forecast for Black Desert, we have been celebrating the 10th year and we will do our best so that we can reaffirm our basics, and also come up with some changes with the know how that we had accumulated for the past 10 years. We will go through full fledged changes, so that we can provide more enjoyment to our global users. First of all, during the last year, we know that Land of the Morning Light was very popular and we are currently preparing for Land of the Morning Light Part Two Seoul. And apart from this, we plan to add many diverse new contents, so that we can continue with our consistent performance.<br /><o:p><br /></o:p>A - Kim Geong Man<br />(Foreign Language) To answer your questions about new titles for this year. Well, our company has been concentrating our efforts on developing Crimson Desert and also CCP gains has been doing very well. And they have been well maintaining their live service so far. And in order to secure new growth engines, have been developing EVE IP based new titles.<br /><o:p><br /></o:p>(Foreign Language) We are also seeing the new titles, new title development that is being completed. And from Q4 of last year, with the open test of EVE Vanguard, we have had the soft launching of EVE Galaxy Conquest. So we are making preparations for the launching in 2024.<br /><o:p><br /></o:p>(Foreign Language) And you can see that for EVE Vanguard, it is like the sister program of EVE. And for EVE Galaxy Conquest, we plan to have global launching within this year.<br /><o:p><br /></o:p>(Foreign Language) Apart from this, for the new blockchain project, we have actually received a lot of feedback, because we had countless tests in the previous year and we have been actually reflecting these feedbacks to our games, and we are also planning to showcase or disclose this game within this year as well.<br /><o:p><br /></o:p>(Foreign Language) Until now, our CCP game has been servicing EVE Online and also has been developing games based on the EVE IP. From this year, there will be consecutive launchings of the games that have been developed, that have been in development and we have expectations that this will be a year where we can make profits.<br /><o:p><br /></o:p>(Foreign Language) In addition, because we have high expectations that we can receive Black Desert online Chinese game license within this year, if we do, we plan to launch this within this year as well.<br /><o:p><br /></o:p>Operator<br />(Foreign Language) It was our CEO, Heo Jin-Young and CBO, Kim Geong Man, who answered your questions. (Operator Instructions)<br /><o:p><br /></o:p>(Foreign Language) It seems that we have no questions on the line, so we will conclude Pearl Abyss 2023 Q4 and full year earnings release. Thank you for listening.</span></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-88353657662673334562024-02-13T00:51:00.000+00:002024-02-13T00:51:10.442+00:00How could Banking work with minimal adjustments to current game mechanics?<span style="font-family: verdana;">At its core, a traditional Bank is a business that takes in money from Depositors and lends that money out to Borrowers in exchange for some collateral to cover the loan. So thinking mortgages here.</span><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The revenues of the Bank is the interest rate it charges the Borrowers and the costs are the interest rate it pays to Depositors and any loans it has made that go bad (the Borrower is unable to pay and so the loan is written off) less the collateral that becomes the property of the Bank.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Get the collateral right and the cost of loans going bad is very small to none at all.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">How could this work with current game mechanics?</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The current Contracting systems gets us almost there.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">To make a loan i would want to give isk to a Borrower for a set number of days in return for Collateral. If the Loan + Interest was repaid within x days then the Borrower gets the Collateral back.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That is a contract within a contract - see the example below.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">All we need to be able to do is put contracts within contracts, and then we are there. And more.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">An example</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Lets assume i was lending out 1 billion isk for 4 months and charging 100m interest. And i chose to accept a Procurer Blueprint as Collateral (base value 1.4bn isk).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The way this would work is to create the contracts in reverse.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I would first create a contract to give the Borrower a Procurer Blueprint in exchange for 1.1bn isk with a time limit of 4 weeks. So a sort of Courier Contract with no distance travelled. But this contract would not be immediately given to the Borrower, it would be part of the next contract.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I would then create a contract to give the Borrower 1bn Isk and the above contract in exchange for an Procurer Blueprint. So a simple exchange contract.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So, on day 1 the Borrower gets 1bn isk from me </span><span style="font-family: verdana;">and a contract to pay me 1.1bn isk in exchange for the Procurer Blueprint, </span><span style="font-family: verdana;">and i get a Procurer Blueprint .</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The Borrower then has the option of paying me 1.1bn isk within 4 weeks and getting the Procurer Blueprint back or defaulting in which case i get the Procurer Blueprint.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I cant run off with the Blueprint because i have given a courier type contract to return it - so it will effectively be held in escrow.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">This is an example of secured lending, like a mortgage.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">How would the deposits work?</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In the same way, the depositor gives me isk in exchange for some collateral and a contract from me to repay the isk + interest in exchange for the collateral within a certain time.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">What is the underlying truth that makes this work?</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The assumption here is that the Borrower and Bank have plenty of assets sitting around unused which they are willing to use as collateral and that the Bank has surplus isk available to fund any Depositors wanting isk back before new depositors come in.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In this situation, if things go wrong then assets start changing hands and the Depositors and / or Banks are left with lots of Collateral items rather than their isk + interest.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;"><br /></span></b></div><div><b><span style="font-family: verdana;">Where would this lead?</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Get the ability to put contracts within contracts and you get the ability to have Futures and Options, and therefore the ability to go short items</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-68464254118293366622024-02-10T14:14:00.004+00:002024-02-10T14:14:30.180+00:00Month end update - January 2024<div><span style="font-family: verdana;"><span>I made 71bn profits in January 2024. There was no</span><span> </span><a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a> and so no distributions were made. Therefore my wealth rose by the 71bn to 1.248 trillion isk.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /><b>Distributions<br /></b><span><br /></span></span></div><div><span style="font-family: verdana;"><span>These days, the aim is to distribute my profits to the</span><span> </span><a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a> or other ventures. Watching numbers go up once i got to a trillion wealth is somewhat boring<span>. Hence, my wealth will barely increase and any monthly surplus will all be given away at some point.</span></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So far i have given 260bn isk to the <a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a>.</span></div><div><br /></div><div><span style="font-family: verdana;">The show started in July and i have generated profits of 384bn in the July - December period and distributed 260bn.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><b><span style="font-family: verdana;">Four Omega Accounts to pay for</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Keeping 4 accounts on Omega cost me 7.0bn isk in December - that is as a result of taking advantage of the Omega / Plex deals when they come along every 2 months or so.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">The basic numbers</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In January i had sales of 401bn isk vs December of 289bn. So a good increase of 39%. January was a buoyant month from start to finish.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Item profits were 117bn isk which is a healthy margin of 39% (117/401). So, again, profitability is good. Much better than the 25% target i set.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The key output point here is that to go profits i need to grow sales. The profitability i make is good.</span></div><div><br /></div><div><span style="font-family: verdana;">Taxes and Courier fees came to 39bn isk. That takes the Trading Profits to 78bn isk and so a trading margin of 19.4% (78/401) which is better than the 15% i target.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Then add in the 7bn plex cost to Omega 4 accounts takes me to 71bn profits made in January.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>What is needed to get wealth to rise b 100bn in a month?</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Average Sales per Day was 13bn isk and Average increase in daily wealth was 2.5bn isk (2.3bn after omega costs).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">To get 100bn isk of an increase in wealth before distributions i would need to make daily sales of 18bn isk.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">What i am selling</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">No change here. Same as usual - Implants, Blueprints, ship equipment.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I have a rule that the minimum profits have to be 100m isk. It is no use me buying items for 5m to sell them for 15m. The profitability may be great but that won't move the dials. That said, it is surprising how many items i can buy for 120m from Jita Sell Orders and sell for 220m in the other trading hubs. At that isk level, players re-equipping don't care about spending an additional 100m isk to save time.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Blueprints are doing better. They are by far the slowest item i sell and the most common i need to update to avoid them being taken off the Sell Order after 90 days of being unchanged.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Implants are doing well though there is becoming a general shortage of some like the Harvest Blueprint. As a rule, the niche mining equipment items are in general short supply which i believe reflects rising demand from new / returning players whilst supply takes a while to catch up.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Ship Equipment is ok though nothing to write home about.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Where is it all selling?</b></span></div><div><span style="font-family: verdana;"><b><br /></b></span></div><div><span style="font-family: verdana;">For the first time Hek was the best sales location doing 63bn isk of sales. That is a massive rise of 187% on the 22bn sales in January. I doubt i will repeat that in February.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Dodixie and Amarr both did around 60bn with Jita close at 59bn.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Overall, all the Omega Trade hubs showed sales rising nicely except Dodixie which was flat and Alenetene which was down 15%.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The secondary Trade hubs (Alenetene + Arnon and Sobaseki + Tash Murkon) continue to justify being Omega status with estimated profits before Plex of 6bn and 14bn respectively.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><span style="font-family: verdana;"><b>Manufacturing</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I do this opportunistically and i don't keep track of it. I don't (yet) do it systematically but i need to get a grip. I am sure there are many items i sell in the Trade Hubs that i could manufacture in Jita and so get a better in price vs buying them from Jita Sell Orders.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Planetary Interaction</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Started this up again to remind me how it works. Following the changes to volumes, i can keep my planets going for a long time before i need to pick anything up.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The ultimate aim is to do this in low or null sec.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Research</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I am experimenting with this to see if i can get it off the ground. The idea comes from a video by <a href="https://www.youtube.com/@strange_Net" target="_blank">Strange Net</a> where he discusses how he <a href="https://www.youtube.com/watch?v=e1jO25Su-1I" target="_blank">makes money from BPOs</a>. It requires the use of the Contract Market which i am not a fan of.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Most of my Omega Characters can do this - so that's 12 Characters i could throw into this.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Station Trading</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">All in Jita. This is going ok. Picked up in January to 59bn isk of sales which is healthy levels.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I still really need to ramp this up but again i don't yet have a systematic way of going about it. Similar story to Manufacturing.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">My idea of station trading is not buying items when they look cheap. For me, station trading is about sticking to the slow moving items and quite often i am the only person in Jita trying to sell an item. Almost always Selling for over 1bn isk.</span></div><div><br /></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Alpha Accounts</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">They have all now stopped trading. Other than Arnon and Alentene, all the other locations show little promise at this stage. I will keep them on but they will be dormant for now.</span></div><div><br /></div><div><br /></div><div><span style="font-family: verdana;"><b>Current Wealth</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><div style="color: #222222;"><span style="font-family: verdana;">Current wealth is <span style="color: red;"><b>1.25 trillion </b></span>ISK made up from:</span></div><div style="color: #222222;"><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Plex held as an investment 0bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for sale 35bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for use in business 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Omega brought forward 28bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Buy orders on the market 18bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">items for sale 1.35 trillion ISK</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">less a 20% provision 271bn ISK*</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">ISK in wallet 73bn ISK</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">When i add up my wealth, I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc. The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK or are used to generate isk that can be readily resold back onto the market. Any ships or skills or fittings etc i buy are counted as expenses in that month. The only exception to this rule is Blueprint Originals i use for manufacturing. They are held at cost.</span></div><div style="color: #222222;"><span style="font-family: verdana; font-size: xx-small;"><br />* I take a 20% provision against the items I am selling. Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK). For me, I want my wealth to be calculated at cost. I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold. Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold. In an ideal world I would value my sell orders at the value which I bought the items for.</span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-18775199594310862852024-01-05T21:22:00.006+00:002024-01-05T21:22:55.800+00:002023 Wealth, Sales, Profits and distributions. Trillionaire.<div style="text-align: left;"><span style="font-family: verdana;">For 2023 i generated profits after all costs of 702 billion isk and from that i paid out 261 billion isk to the <a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a> (well, 1 billion went to another <a href="https://www.twitch.tv/dangerous_d666" target="_blank">twitch show dangerous_d666</a>).</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Therefore, my wealth rose by 441 billion isk from 736 billion isk to 1.2 trillion isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">So on 2023 i became a trillionaire.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">The Basic Numbers</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I made sales of 4.0 trillion isk which generated profits of 1.2 trillion isk. So a nice profit margin of 29.7% and therefore ahead of the 25% i target.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Sales tax of 140 billion + Broker listing fees 60bn + Broker relisting fees 96 billion + courier fees 85bn + Manufacturing taxes 6 billion meant the costs of doing business were 387 billion isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Therefore, the profits from by business were 808 billion isk which is a nice 20% margin and higher than the 15% i target.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">From which i spent 94 billion on Omega (either directly via plex or through New Eden Store deals) and other costs of 12 billion (moving trading locations when player stations in high sec got nailed and implants for some of the Omega alts).</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">That therefore left me with profits of 702 billion isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">Charts</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The first chart shows how my wealth has increased since i started on that say in August 2020. Rising nicely before flattening around July 2023 which is when i started giving my monthly profits to the Oz Tank Show.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiTMMFiudJ9_io-_SE664B1_CYy3-Lw08aPbTgsYIQnuOq99nM7Uuy1aX-_fsmospahhyiNtdyeju5qQ721xwQu8TzbmnYKQ55tWHpKzw321aNACfzPMcN1thnLCFzkgi0WJsnnlMYtRR6fDjrInH_6sxZmXkVWU7nGPmKEm4mVTxU_yFzyCroaIhliNJx0" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="452" data-original-width="752" height="192" src="https://blogger.googleusercontent.com/img/a/AVvXsEiTMMFiudJ9_io-_SE664B1_CYy3-Lw08aPbTgsYIQnuOq99nM7Uuy1aX-_fsmospahhyiNtdyeju5qQ721xwQu8TzbmnYKQ55tWHpKzw321aNACfzPMcN1thnLCFzkgi0WJsnnlMYtRR6fDjrInH_6sxZmXkVWU7nGPmKEm4mVTxU_yFzyCroaIhliNJx0" width="320" /></span></a></div><span style="font-family: verdana;"><br /><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">That said, there is no hiding the fact that my monthly profits are now actually starting to be below last year. In September and November 2023 my monthly profits before making any distributions were below the same months in 2022. The only reason October and December 2023 were higher than the same months in 2022 was due to skill farming on the back of a couple of MCT deals in the New Eden Store.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhremHc4HBxgOG_6jEUaay_IFZbBZXJhNpETUESQ7KlN87iK3ET5fXiqTWiBl8hbtaUgzQVM8NUeJ7TPROnAHZx_2kggcUD38xWKbRGKXG3iQ0C_yPlzLqpY_dYJjBsQ95zgNVWeUu-RlrhjEjaFOkcKJTeZpYetX4PV74h9K4E5tAt0LiL4gntRHfCtLTN" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="452" data-original-width="751" height="193" src="https://blogger.googleusercontent.com/img/a/AVvXsEhremHc4HBxgOG_6jEUaay_IFZbBZXJhNpETUESQ7KlN87iK3ET5fXiqTWiBl8hbtaUgzQVM8NUeJ7TPROnAHZx_2kggcUD38xWKbRGKXG3iQ0C_yPlzLqpY_dYJjBsQ95zgNVWeUu-RlrhjEjaFOkcKJTeZpYetX4PV74h9K4E5tAt0LiL4gntRHfCtLTN" width="320" /></span></a></div><span style="font-family: verdana;"><br /><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">In part this is due to a decline in average daily sales since around November 2022. Seems the markets i operate in are just getting quieter - or maybe they are super normal busy at the end of 2022.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgLHVZKRfsvWT6UZeMq1Hze-GnEqd3f8rtWF0bWsX8rff380VJTEaicBRqhNMTTP_PGNMICOxC_N0v5hriAiSSrfBocmDKN-hgsi6eKVMOBmwALMqk7ysNH_UWKO6gXfkWGjFAosvXg7wzffEwj5PLFxwHdL-anae2k_vTzGPyF6_FCRpVK8nFIvG2xWgxG" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="451" data-original-width="751" height="192" src="https://blogger.googleusercontent.com/img/a/AVvXsEgLHVZKRfsvWT6UZeMq1Hze-GnEqd3f8rtWF0bWsX8rff380VJTEaicBRqhNMTTP_PGNMICOxC_N0v5hriAiSSrfBocmDKN-hgsi6eKVMOBmwALMqk7ysNH_UWKO6gXfkWGjFAosvXg7wzffEwj5PLFxwHdL-anae2k_vTzGPyF6_FCRpVK8nFIvG2xWgxG" width="320" /></span></a></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;"><br /><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">And this is reflected in my average daily profits (before distributions) which used to be over 2 billion isk per day but had fallen back to almost 1 billion isk by November 2023. The spikes in October 2023 and December 2023 are due to the skill farming mentioned above.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEi7YfiGUoukx1oE8-T4JdyrCb2DPQW-OSTe1FJ5KpYXYa3EcQxTjtWU3L3ooPAtfjziYXWSv_eJ-Yk38PkmZHZsGkwxh5U-qFHsOR3CQCHQtZS9C5hykV2s08pjeJ6R2uwLhMJ_IkgB3777GeNFNrNgyIqcpDCyPVjH-TSZtdA54EXQFVrPfhxtMe2rjJxP" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="452" data-original-width="751" height="193" src="https://blogger.googleusercontent.com/img/a/AVvXsEi7YfiGUoukx1oE8-T4JdyrCb2DPQW-OSTe1FJ5KpYXYa3EcQxTjtWU3L3ooPAtfjziYXWSv_eJ-Yk38PkmZHZsGkwxh5U-qFHsOR3CQCHQtZS9C5hykV2s08pjeJ6R2uwLhMJ_IkgB3777GeNFNrNgyIqcpDCyPVjH-TSZtdA54EXQFVrPfhxtMe2rjJxP" width="320" /></span></a></div><span style="font-family: verdana;"><br /><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I am hoping my average daily profits will stick around 1.5 billion isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>A few more metrics</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Asset turnover, which measures the proportion of assets that were sold in the year, was 5.5x. In other words, over 2023 i sold all the asset i had up for sale on 1 January 2023 over 5 times.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">My profit margin was 20.1% (thats profits before Omega and distribution costs) which means the Return on Capital Employed was 110% which is huge compared to real life companies.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Taking the Omega costs out pulls the Return on Capital Employed to 95% which is still huge.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The large Return on Capital Employed reflects the fact that i need very little additional assets to make my business work. I don't need factories, stations or ships. I use NPC stations and third party couriers transport my items. The only assets i need are the items to sell themselves.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">This is a high margin, asset light business with a good asset turnover. What is not to like?</span></div><div style="text-align: left;"><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com5tag:blogger.com,1999:blog-1597676555600759067.post-35195750594865833192024-01-04T04:31:00.001+00:002024-01-04T04:31:39.716+00:00Month end update - December 2023<div style="text-align: left;"><span style="font-family: verdana;"><span>I made 75bn profits in December 2023. There was no</span><span> </span><a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a> and so no distributions were made. Therefore my wealth rose by the 75bn to 1.177 trillion isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /><b>Distributions<br /></b><span><br /></span></span></div><div style="text-align: left;"><span style="font-family: verdana;"><span>These days, the aim is to distribute my profits to the</span><span> </span><a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a><span>. Hence, my wealth will barely increase and any monthly surplus will all be given away at some point.</span></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So far i have given 260bn isk to the <a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The no-show in December has allowed my profits to catch up with the distributions.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The show started in July and i have generated profits of 313bn in the July - December period and distributed 260bn.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><b><span style="font-family: verdana;">Four Omega Accounts to pay for</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Keeping 4 accounts on Omega cost me 7.0bn isk in December - that is as a result of taking advantage of the Omega / Plex deals when they come along every 2 months or so.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>75bn profit can be divided into two buckets = 30bn + 45bn</b></span></div><div><br /></div><div><span style="font-family: verdana;"><b>Skill Farming</b>: a</span><span style="font-family: verdana;">t the start of December i took advantage of the </span><a href="https://marketsforisk.blogspot.com/2023/12/platinum-starter-pack-offer-for-48.html" style="font-family: verdana;" target="_blank">Platinum Starter Pack offer</a><span style="font-family: verdana;">. For 1501 plex it gave 3 months Omega (normal cost 1200 plex) + 10 skill extractors + 2 Multiple Training Certificates + 650k skill points. A great deal. I now have 30 Large Skill Injectors + 11 Skill Instractors left over = 31 bn isk of value less the 301 additional plex it cost to access this (=301x5 = 1.5bn isk). I have not sold any - so these are sitting in assets. But that is 31bn of wealth that is one-off less 1.5bn cost to access it.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Normal Trading</b>: therefore, the normal trading profit was 45bn isk (75-(31-1.5)). If i strip out the Omega costs of 7bn then my normal trading profit comes to 1.7bn isk per day (45+7)/31. That is getting better though not back at the levels it was</span><span style="font-family: verdana;"> from September 2022 to July 2023.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">The basic numbers</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In December i had sales of 289bn isk vs November of 219bn. So a good increase of 32% which really took off in the final two weeks of the month.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Item profits were 111bn isk which is a healthy margin of 38% (111/289). So, again, profitability is good. Much better than the 25% target i set. It is sales i need to improve.</span></div><div><br /></div><div><span style="font-family: verdana;">Taxes and Courier fees came to 28bn isk. Then add in the 7bn plex cost to Omega 4 accounts takes me to 75bn profits made in December.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">What i am selling</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Same as usual - Implants, Blueprints, ship equipment.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I have a rule that the minimum profits have to be 100m isk. It is no use me buying items for 5m to sell them for 15m. The profitability may be great but that won't move the dials. That said, it is surprising how many items i can buy for 120m from Jita Sell Orders and sell for 220m in the other trading hubs. At that isk level, players re-equipping don't care about spending an additional 100m isk to save time.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">There was a competitor for Blueprints in a few of the trading hubs - but they seem to have gone now. Good news - takes me less time to update orders.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Implants were doing well but now it seems the running has been taking up by ship equipment.</span></div><div><br /></div><div><br /></div><div><span style="font-family: verdana;"><b>Manufacturing</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I have stopped doing his for now - i need to find a better way of doing it systematically such that my trading hubs can benefit from items being manufactured in Jita and therefore allowing me to get cost that is closer to the Jita Buy price rather than Jita Sell price.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Planetary Interaction</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Started this up again to remind me how it works. Following the changes to volumes, i can keep my planets going for a long time before i need to pick anything up.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The ultimate aim is to do this in low or null sec.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Station Trading</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">All in Jita. This is going ok. Picked up in December to 35bn isk of sales which is healthy levels.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I still really need to ramp this up but again i don't yet have a systematic way of going about it.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">My idea of station trading is not buying items when they look cheap. For me, station trading is about sticking to the slow moving items and quite often i am the only person in Jita trying to sell an item. Almost always Selling for over 1bn isk.</span></div><div><br /></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Alpha Accounts</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">They have all now stopped trading. Other than Arnon and Alentene, all the other locations show little promise at this stage. I will keep them on but they will be dormant for now.</span></div><div><br /></div><div><br /></div><div><span style="font-family: verdana;"><b>Current Wealth</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><div style="color: #222222;"><span style="font-family: verdana;">Current wealth is <span style="color: red;"><b>1.18 trillion </b></span>ISK made up from:</span></div><div style="color: #222222;"><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Plex held as an investment 0bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for sale 61bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for use in business 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Omega brought forward 35bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Buy orders on the market 19bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">items for sale 1.3 trillion ISK</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">less a 20% provision 257bn ISK*</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">ISK in wallet 23bn ISK</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">When i add up my wealth, I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc. The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK or are used to generate isk that can be readily resold back onto the market. Any ships or skills or fittings etc i buy are counted as expenses in that month. The only exception to this rule is Blueprint Originals i use for manufacturing. They are held at cost.</span></div><div style="color: #222222;"><span style="font-family: verdana; font-size: xx-small;"><br />* I take a 20% provision against the items I am selling. Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK). For me, I want my wealth to be calculated at cost. I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold. Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold. In an ideal world I would value my sell orders at the value which I bought the items for.</span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-78680420990246988772023-12-22T21:19:00.001+00:002023-12-22T21:19:33.982+00:00Month end update - November 2023<div style="text-align: left;"><span style="font-family: verdana;">I made 32bn profits in November 2023 of which 101bn was distributed on to the</span><span style="font-family: verdana;"> </span><a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" style="font-family: verdana;" target="_blank">Oz Tank Show</a><span style="font-family: verdana;"> (100bn to Oz Tank Show and 1bn to a Twitch show). </span><span style="font-family: verdana;">Therefore, my wealth fell by 69bn isk to 1.101 trillion isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>Distributions</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">These days, the aim is to distribute my profits to the</span><span style="font-family: verdana;"> </span><a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" style="font-family: verdana;" target="_blank">Oz Tank Show</a><span style="font-family: verdana;">. Hence, my wealth will barely increase and any monthly surplus will all be given away at some point.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">So far i have given 260bn isk to the <a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a>.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The show started in July and i have generated profits of 238bn in July - November and distributed 260bn. There will be no show in December which will allow my profits to catch up.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><br /></div><div><b><span style="font-family: verdana;">Four Omega Accounts to pay for</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Keeping 4 accounts on Omega cost me 7.0bn isk in November. The cost has fallen given the deals i have taken part in over recent months.</span></div><div><b><span style="font-family: verdana;"><br /></span></b></div><div><b><span style="font-family: verdana;"><br /></span></b></div><div><span style="font-family: verdana;"><b>Second month making 1bn per day profit</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><span>In October when i stripped out what i made in skill farming from the </span><a href="https://marketsforisk.blogspot.com/2023/06/the-omega-mct-deal-on-new-eden-store.html" target="_blank">Omega-MCT deal which i discussed here</a> i worked out that i made 1bn per day (33bn profits).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">November has been no different.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">This has taken me by surprise, i was constantly doing 2bn profits per day since September 2022.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Not sure what the problem is but sounds like i need to revisit what i am trying to sell. I suspect i am focusing too much on items with no competition rather than items with 1 or 2 competitors.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">The basic numbers</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In November i had sales of 219bn isk vs October of 334bn. That said, the underlying sales in October were 251bn (+83bn skill farming). But, still a decline of 13%. That was a poor show.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Item profits were 69bn isk which is a healthy margin of 32% (69/219). So, again, the problem is not profitability. The problem is sales.</span></div><div><br /></div><div><span style="font-family: verdana;">Taxes and Courier fees came to 31bn isk. Then add in the 7bn plex cost to Omega 4 accounts takes me to 32bn profits made in November.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">And then off that comes the 101bn distributions.</span></div><div><br /></div><div><div><span style="font-family: verdana;"><br /></span></div></div><div><b><span style="font-family: verdana;">What i am selling</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Same as usual - Implants, Blueprints, ship equipment.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I have a rule that the minimum profits have to be 100m isk. It is no use me buying items for 5m to sell them for 15m. The profitability may be great but that wont move the dials. That said, it is surprising how many items i can buy for 120m and sell for 220m. At that isk level, players re-equipping don't care about spending an additional 100m isk to save time.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">There is a competitor for the Blueprints in a few of my trading locations now. Updating their prices daily. Will be a battle of attrition. But i can't give up and therefore it is a costly battle of attrition.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Implants are doing the best now and i often sell a family of implants at a time (i.e. the alpha, beta, delta, epilson, gamma and omega implant).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><span style="font-family: verdana;"><b>Manufacturing</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">All but on hold for now - i don't really have enough time to devote to it. I would love to find a system or process that would allow me to have continuous manufacturing in place to make decent profits.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Planetary Interaction</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Started this up again to remind me how it works. Following the changes to volumes, i can keep my planets going for a long time before i need to pick anything up.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The ultimate aim is to do this in low or null sec.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Station Trading</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">All in Jita. This is going ok though has slowed right down to 13bn sales. Takes up very little time so i will stick with it for now. But i need to ramp this up.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Alpha Accounts</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">They have all now stopped trading. Other than Arnon and Alentene, all the other locations show little promise at this stage. I will keep them on but they will be dormant for now.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Non-Trading activities</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Putting Manufacturing on hold and stopping Planetary Interaction all makes sense but is a little sad for me. I would love to find another isk making activity that would fit into my schedule.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><span style="font-family: verdana;"><b>Current Wealth</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><div style="color: #222222;"><span style="font-family: verdana;">Current wealth is <span style="color: red;"><b>1.10 trillion </b></span>ISK made up from:</span></div><div style="color: #222222;"><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Plex held as an investment 0bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for sale 62bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for use in business 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Omega brought forward 21bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Buy orders on the market 22bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">items for sale 1.2 trillion ISK</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">less a 20% provision 240bn ISK*</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">ISK in wallet 27bn ISK</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">When i add up my wealth, I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc. The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK or are used to generate isk that can be readily resold back onto the market. Any ships or skills or fittings etc i buy are counted as expenses in that month. The only exception to this rule is Blueprint Originals i use for manufacturing. They are held at cost.</span></div><div style="color: #222222;"><span style="font-family: verdana; font-size: xx-small;"><br />* I take a 20% provision against the items I am selling. Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK). For me, I want my wealth to be calculated at cost. I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold. Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold. In an ideal world I would value my sell orders at the value which I bought the items for.</span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-46849077923117311222023-12-03T14:30:00.002+00:002023-12-03T14:44:47.721+00:00Platinum Starter Pack Offer for 48 hours - great deal, 3 months Omega for free.<span style="font-family: verdana;">If like me you Plex your account and tend to take the three month Omega deal for 1200 Plex then this offer is a great deal.</span><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>The deal</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Only one per account.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In the new Eden Store (accessed ingame) there is an offer for the Platinum Starter Pack.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEixQNme-CmU0XdFbiEmz9gKqbCAk0PzH46InpuwQ1hRStJ63WJSM51Lti3SxoFdgqQ21J0dPJ3J68znfxudjK54tRAIG3p56NzYNYLxFF2uTqHxHE9ZANO9klqPC-rIoz5L4pAsPcDHqK4v7hmzXtlImGYTR8lKXwnzJUUH_8it4AVn0dQOudC2SXmJidmi" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="" data-original-height="283" data-original-width="281" height="240" src="https://blogger.googleusercontent.com/img/a/AVvXsEixQNme-CmU0XdFbiEmz9gKqbCAk0PzH46InpuwQ1hRStJ63WJSM51Lti3SxoFdgqQ21J0dPJ3J68znfxudjK54tRAIG3p56NzYNYLxFF2uTqHxHE9ZANO9klqPC-rIoz5L4pAsPcDHqK4v7hmzXtlImGYTR8lKXwnzJUUH_8it4AVn0dQOudC2SXmJidmi" width="238" /></a></div><div class="separator" style="clear: both; text-align: left;">It costs you 1501 Plex.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">It gives you:</div><div class="separator" style="clear: both; text-align: left;">3x 30 day Omega</div><div class="separator" style="clear: both; text-align: left;">10x Skill Extractors</div><div class="separator" style="clear: both; text-align: left;">2x Multiple Pilot Training</div><div class="separator" style="clear: both; text-align: left;">650,000 skill points</div><div class="separator" style="clear: both; text-align: left;">a number of skins and suits</div><div class="separator" style="clear: both; text-align: left;">1x Expert 'boost' Cerebral Accelerator (this activates immediately on the character that bought the deal, +10 to all learning attributes, lasts for 10 days)</div><br /><br /></span></div><div><span style="font-family: verdana;"><b>The numbers</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Plex is currently selling for 5m, so the cost of the deal is 1501x5.032 = 7.553bn</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">costing up what i get:</span></div><div><span style="font-family: verdana;"><br /></span></div><div><ul style="text-align: left;"><li><span style="font-family: verdana;">3 months of Omega i can get for 1200 Plex in the New Eden Store = 1200 x 5.032 = 6.038bn</span></li><li><span style="font-family: verdana;">I am ignoring the 2 months of Multiple Pilot Training because i don't normally Skill Farm</span></li><li><span style="font-family: verdana;">10 Skill Extractors can be sold for around 400m each = 10x400 = 4bn</span></li><li><span style="font-family: verdana;">And for now lets ignore the Skill Points</span></li><li><span style="font-family: verdana;">The Skins and Suits come to a few sundry millions</span></li></ul></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So, the Deal gives me 10.2bn worth of items.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Or, put it another way, if i sold the Extractors <span style="color: red;"><b>i would get 3 months of omega for (6.038-4.0) = 2bn isk</b></span> and then on top of that 2 Multiple Pilot Training Certificates and 650,000 skill points.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">If i then skill farmed and assumed i would make 37.5 skill points per minute per character then i would get 37.5 x 60 x 24 x 30 x 2 = 3,240,000 skill points. That gives me 6 skill extractors to fill (at 500,000 skill points each). Each Skill Extractor makes a profit of around lets say 400m = 2.4bn.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">and that then covers the rest of the cost of the Omega. </span><b style="color: red; font-family: verdana;">In other words, i get 3 months Omega for Free.</b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">And some fancy pants suits and skins. And 650,000 Skill Points to advance my training character. And what ever was left from the Multiple Pilot Training certificates that i could not put into an extractor.</span></div><div><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-11153102572118284092023-11-17T00:08:00.000+00:002023-11-17T00:08:12.762+00:00Month end update - October 2023<div style="text-align: left;"><span style="font-family: verdana;">I made 74bn profits in October 2023 of which 62bn was distributed on to the <a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a> and the Eden Halloween give away. Therefore, my wealth rose by 12bn isk to 1.170 trillion isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">These days, the aim is to distribute my profits to the <a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank Show</a>. Hence, my wealth will barely increase and any monthly surplus will all be given away at some point.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">Four Omega Accounts to pay for</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Keeping 4 accounts on Omega cost me 8.2bn isk in October - i took part in one of the CCP deals which i detailed <a href="https://marketsforisk.blogspot.com/2023/10/plex-omega-deal-3-months-is-great-value.html" target="_blank">in this post</a> - it was a great deal. The 74bn isk profits comes after this 8.2bn isk cost.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I greatly suspect CCP will keep doing these Omega deals - and for me the 3 month deal is always the best.</span></div><div style="text-align: left;"><b><span style="font-family: verdana;"><br /></span></b></div><div style="text-align: left;"><b><span style="font-family: verdana;"><br /></span></b></div><div style="text-align: left;"><b><span style="font-family: verdana;">74bn isk profits sounds great but there is a lot going on in there</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Firstly, around three months ago i took part in a <a href="https://marketsforisk.blogspot.com/2023/06/the-omega-mct-deal-on-new-eden-store.html" target="_blank">Omega-MCT deal which i discussed here</a>. Essentially, i paid 3bn isk for 3 months of multiple character skill training for all my Omega Accounts. It was the deal of a life time. i reckoned that would generate me 50bn profits at the time. Infact, it generated me 41bn - looks like i did not trade in all my additional skill points.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Therefore, my normal profits were 33bn ( = 74-41) which is around 1bn per day.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Not too shabby but not the 2bn per day i was getting used to.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I find myself a little concerned, i should be doing much better in October and November feels slow also.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">Also, good job in paying out 62bn isk to the Oz Tank and Eden Halloween Event</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Again, there is a bit more to this.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I actually paid 67bn to the Oz Tank Show + 10bn to Golden CEO Zero Tax Market project + 5bn to Eden Trade Halloween Event. That is 82bn paid.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">However, in August and September i had accrued 10bn in each month to pay Golden CEO but he decided that he did not need his monthly 10bn until October. Therefore, i wrote back the 20bn accrued which effectively meant my distributions in October were 82 - 20 = 62bn.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">That makes the total distributions i have made to mostly the Oz Tank Show of 160bn isk in the last 4 months.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">So, from July onwards i have made profits of 206bn isk and distributed 160bn of it. I aim to distribute all the monthly profits i make,</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">As i write this, i have promised another 101bn isk in November in the November Oz Tank Show.</span></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">The basic numbers</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">In October i had sales of 334bn isk which breaks down as 83bn isk of skill farming sales + 251bn isk of normal sales. I would have to go back to March 2022 to see 250bn of normal sales - that indicates why i am concerned. October should not be this slow.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Item profits were 116bn isk which again breaks down as 45bn skill farming profits + 71bn isk normal profits. That means that my normal item profits were 28% (71/250) which are at the upper end of the normal range. So no problems on profitability.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Taxes and Courier fees came to 34bn isk. Then add in the 8bn plex cost to Omega 4 accounts takes me to 74bn profits made in October.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Then 62bn distributions takes me to my wealth rising 12bn isk in the month.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div><b><span style="font-family: verdana;">Skill Farming</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Over 3 months i trained all the characters in my Omega accounts with the aim of harvesting the skills generated form the 2 non-jita characters in each account.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">in total i harvested 41m skill points. I paid an average of 462m isk per skill extractor and sold each large skill injector for 902m isk.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Because i was always going to omega my accounts then i don't count the cost of this omega when thinking about skill farming.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div></div><div><b><span style="font-family: verdana;">What i am selling</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Same as usual - Implants, Blueprints, ship equipment.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I have a rule that the minimum profits have to be 100m isk. It is no use me buying items for 5m to sell them for 15m. The profitability may be great but that wont move the dials. That said, it is surprising how many items i can buy for 120m and sell for 220m. At that isk level, players re-equipping don't care about spending an additional 100m isk to save time.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">There is a competitor for the Blueprints in a few of my trading locations now. Updating their prices daily. Will be a battle of attrition. But i can't give up and therefore it is a costly battle of attrition.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Implants are doing the best now and i often sell a family of implants at a time (i.e. the alpha, beta, delta, epilson, gamma and omega implant).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Lower than hoped sales over October</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">For the matter of the lower than hoped sales over October I suspect part of my problem is that i have done two things over recent months that have gone down the liquidity curve:</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">1) I have more focused on selling items where there is zero competition. That tends to be the items that sell the least frequently, even by my standards.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">2) I have not reviewed the market to look for new items to sell. Therefore i have not refreshed by target sell list for too long.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Manufacturing</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">All but on hold for now - i don't really have enough time to devote to it. I would love to find a system or process that would allow me to have continuous manufacturing in place to make decent profits.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Planetary Interaction</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Not gone any further and stopped the trial over the summer.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That may still work. Profits in High-Sec are too low for me given the time required to make it all work.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Maybe low or null sec will work but that is a project for a another day.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Station Trading</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">All in Jita. This is going ok though slowed down in October to 14bn. Takes up very little time so i will stick with it for now.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Alpha Accounts</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">They have all now stopped trading. Other than Arnon and Alentene, all the other locations show little promise at this stage. I will keep them on but they will be dormant for now.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Non-Trading activities</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Putting Manufacturing on hold and stopping Planetary Interaction all makes sense but is a little sad for me. I would love to find another isk making activity that would fit into my schedule.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><span style="font-family: verdana;"><b>Current Wealth</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><div style="color: #222222;"><span style="font-family: verdana;">Current wealth is <span style="color: red;"><b>1.17 trillion </b></span>ISK made up from:</span></div><div style="color: #222222;"><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Plex held as an investment 0bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for sale 41bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for use in business 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Omega brought forward 28bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Buy orders on the market 40bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">items for sale 1.2 trillion ISK</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">less a 20% provision 244bn ISK*</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">ISK in wallet 77bn ISK</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">When i add up my wealth, I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc. The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK or are used to generate isk that can be readily resold back onto the market. Any ships or skills or fittings etc i buy are counted as expenses in that month. The only exception to this rule is Blueprint Originals i use for manufacturing. They are held at cost.</span></div><div style="color: #222222;"><span style="font-family: verdana; font-size: xx-small;"><br />* I take a 20% provision against the items I am selling. Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK). For me, I want my wealth to be calculated at cost. I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold. Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold. In an ideal world I would value my sell orders at the value which I bought the items for.</span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-2788076143039669862023-11-09T21:09:00.002+00:002023-11-09T21:09:32.816+00:00Pearl Abyss Q3 2023 results<div style="text-align: left;"><span style="font-family: verdana;">Pearl Abyss has released its Q3 results (July - September 2023). The webcast and link to their <a href="https://irsvc.teletogether.com/pearlabyss/pearlabyss.php?c=pearlabyss&y=1617" target="_blank">presentation is on their website</a>.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">Overall</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhda__tuQLvW30yoURkHvqN1fq2sLrUul0wWEpU8TNMo_Fnyc6Bir2bEgJpZGkAE-U3g1DW5HJwSrX7zTDQsAEZOupKWmbExgxfyrUI7dmoyC-BgVAURHJENcfYCpKd2CIPjrKkJ3lDB9sGM6YrQGUyCCIsqHpPG6VpMy5a_IcqhZWeFxNI0QLV1U_TwZ3Q" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="491" data-original-width="897" height="289" src="https://blogger.googleusercontent.com/img/a/AVvXsEhda__tuQLvW30yoURkHvqN1fq2sLrUul0wWEpU8TNMo_Fnyc6Bir2bEgJpZGkAE-U3g1DW5HJwSrX7zTDQsAEZOupKWmbExgxfyrUI7dmoyC-BgVAURHJENcfYCpKd2CIPjrKkJ3lDB9sGM6YrQGUyCCIsqHpPG6VpMy5a_IcqhZWeFxNI0QLV1U_TwZ3Q=w528-h289" width="528" /></span></a></div><span style="font-family: verdana;"><br /><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Revenues were down 12.7% Q3 2023 vs Q3 2022 and up 8.3% vs Q2 2022.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">A small operating profit was made though this is still down 82.5% vs Q3 2022, and at the bottom line the net profit was still down 29.6% vs Q3 2022.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Focus on the Revenues and Operating Profits - they tell the story. The Net Profits has all sorts of things going on that don't really relate to gaming.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The big news was the delay to the launch of Crimson Harvest. It had been expected to launch in mid 2024, that has been pushed back to 2025. This has surprised many people - Pearl Abyss was talking about the 2024 launch as recently as August at Gamescom. Also, this follows on from prior delays to the game launch - so worries setting in that there is a problem.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">This has pushed back other games as their developers focus on Crimson Harvest. So DokeV now pushed back to 2026.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">In all 2024 revenue hopes will likely need to be almost halved from where anyone thought they would be been before this update.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The net effect of this is that Pearl Abyss profits remain reliant on Black Desert and Eve Online and so profits will be very small, at best. Black Desert continues to be in decline, so Pearl Abyss could see losses.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The share price fell 8% which makes it flat over a week - so the shares gave back what they had made on some more optimistic hopes from one broker. That said, sentiment has turned negative on the shares.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">What did Management say about Eve?</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">As usual, not much.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">No hard numbers other than revenues (see below).</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">In the narrative they said:</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><i><div>"For EVE Online, we saw a slowdown in revenue in Q3 due to the base effect of the Viridian update we launched in Q2. However, we continue to see the strength of the EVE IP with new updates, and most importantly, the largest EVE Fanfest ever held to celebrate the 20th anniversary of service.</div><div><br /></div><div>Notably, the event not only announced news about updates in the second half but also new titles in development, including EVE Vanguard and the EVE Galaxy Conquest. It was an opportunity to showcase EVE's new roadmap for the next decade, carrying on a successful legacy of 20 years in service."</div></i></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br />"<i>EVE will also be providing various contents to service. Most notably the new expansion pack EVE Havoc is planned to be released soon, which will support more diversified game play compared to the as-is with new story elements to add more fun to the game.</i>"</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><i><span style="font-family: verdana;">"</span><span style="font-family: verdana;">We are also preparing for the soft launch of EVE Galaxy Quest, which we announced at Fanfest. EVE Galaxy Conquest is a casual mobile version of the EVE IP that combines exploration, diplomacy, and PvP combat. We're checking those metrics after the soft launch, with a global launch plan for sometime in 2024. Also EVE Vanguard, an FPS expansion pack designed to bring EVE from ship scale to human scale, is undergoing preparations to be made available to select users from December.</span></i></div><div><span style="font-family: verdana;"><i><br /></i></span></div><div style="text-align: left;"><span style="font-family: verdana;"><i>EVE Vanguard has been designed to create an organic relationship with EVE Online that goes beyond just playing an FPS game. It took the best parts of Dust 412, a different version of FPS of the EVE IP, and fixed the weak spots. And it has been designed to be both an expansion pack of EVE Online and have its own VM. We expect to see energy with EVE Online sales as well as increased sales of the EVE IP in the future."</i></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">Focusing on Eve online - the numbers</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Literally, this is it:</span></div><div style="text-align: left;"><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjhDchToNHmxhZ6yaAHniHbvTS4sLuYFbm6G5O3aHGi_ybXqm1UFGRovWUmbWhTd2BmfbQKW5g9DseOAemlSdTLrhMX3DQzqh2u7JhtZT3hKyfzkFDl7rLsrj8OV8Mvu5OXebLLh-gYuCrq7IHvQbsC7PZnmvtDlSt6g7suEDjsxjomLaLSvTyqjXmEZ_au" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="395" data-original-width="303" height="297" src="https://blogger.googleusercontent.com/img/a/AVvXsEjhDchToNHmxhZ6yaAHniHbvTS4sLuYFbm6G5O3aHGi_ybXqm1UFGRovWUmbWhTd2BmfbQKW5g9DseOAemlSdTLrhMX3DQzqh2u7JhtZT3hKyfzkFDl7rLsrj8OV8Mvu5OXebLLh-gYuCrq7IHvQbsC7PZnmvtDlSt6g7suEDjsxjomLaLSvTyqjXmEZ_au=w228-h297" width="228" /></span></a></div><span style="font-family: verdana;"><br /><br /></span></div><div style="text-align: left;"><div><span style="font-family: verdana;">In Q3 2023 Eve generated 16.0bn Won in revenues vs 20.2bn Won in Q2 2023 and 19.4bn Won in Q3 2022.</span></div></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div><b><span style="font-family: verdana;">Focusing on Eve online - some analysis looking at the movement in Omega Accounts</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Firstly, right off the bat, what we don't know is how the revenue is split between paid monthly subscriptions and other revenues such as paying for Plex, Injectors, etc.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">But lets assume, for a moment, it is mostly subscription and the movement in revenues can be explained by pricing and volumes.</span></div><div><span style="font-family: verdana;"><br /></span></div></div><div style="text-align: left;"><span style="font-family: verdana;">When thinking about is 16.0bn Won good or bad, we have to compare the prior year to get a fair comparison (i.e Q3 2022) because that irons out seasonal issues.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">In Q3 2022 Eve generated 19.4bn Won.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">We have to remember that in Q2 2022 CCP increased the subscription price by 30%. Lets assume therefore that the Q3 2022 revenues had the full price rise in as does the Q3 2023. Therefore, the difference between Q3 2023 and Q3 2022 will be currency and Omega Account numbers.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Quick check on currencies:</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEi-is7ZBWYDVbIm71980eY7Ju4QXPtEQfYth2J1f7802E3MgzBisHEbF9AhPII-r9Eaz9ucGWvo-B3hYiTzd_MCDhVMlW0qzH9v5bLIcXRG5u4jjhVI3KwPiE7p5zR5unqrK1thYqwMh2CgaXtTT04sHEqBxrbkEuB2ut9x3SVS4FnS1XQJLUMIeo35axk-" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="81" data-original-width="257" height="101" src="https://blogger.googleusercontent.com/img/a/AVvXsEi-is7ZBWYDVbIm71980eY7Ju4QXPtEQfYth2J1f7802E3MgzBisHEbF9AhPII-r9Eaz9ucGWvo-B3hYiTzd_MCDhVMlW0qzH9v5bLIcXRG5u4jjhVI3KwPiE7p5zR5unqrK1thYqwMh2CgaXtTT04sHEqBxrbkEuB2ut9x3SVS4FnS1XQJLUMIeo35axk-" width="320" /></span></a></div><span style="font-family: verdana;"><br /><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The average rates of Won vs USD, Euros and GBP moved +6%, -2% and -5% respectively between Q3 2022 to Q3 2023. Lets therefore assume the overall currency effect was 0% - makes the maths easier.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Therefore, that implied that Omega Account numbers fell 17-18% between Q3 2022 and Q3 2023. That is sort of what we estimated when we looked at the Q2 2023 numbers three months ago.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">That is Omega Account numbers, not player numbers. A player can drop Accounts or downgrade Accounts from Omega to Alpha but still remain a player in the game.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">Comparing to pre-pandemic</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">We also know that gaming companies benefited from the covid lockdowns. So it will be fair to compare Q3 2023 (where everyone is out of lockdown) to Q3 2019 which is the last Q3 before the pandemic.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">In Q3 2019 Eve generated 14.6bn Won.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div><span style="font-family: verdana;">Since then the subscription price has risen 30%.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Quick check on currencies:</span></div><div><span style="font-family: verdana;"><br /></span></div><div><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjVk8-Ksg4imxxdRpQtEbadZkGB_BQmq-3ur7EX6GOXcVBkPcztutC2IoGl1JxDlE72lkd0B1HDEnUR1WWeTnddfzVUN-cR9BgeVAVVc9vxDUi5iqUkej9SlX5raJG4PDwPEuyKv2eXVMDxHkNZHrYZceYHRsVOGpuRou9zAqbycUu19ZV54tzkYu5uAnBP" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="81" data-original-width="257" height="101" src="https://blogger.googleusercontent.com/img/a/AVvXsEjVk8-Ksg4imxxdRpQtEbadZkGB_BQmq-3ur7EX6GOXcVBkPcztutC2IoGl1JxDlE72lkd0B1HDEnUR1WWeTnddfzVUN-cR9BgeVAVVc9vxDUi5iqUkej9SlX5raJG4PDwPEuyKv2eXVMDxHkNZHrYZceYHRsVOGpuRou9zAqbycUu19ZV54tzkYu5uAnBP" width="320" /></span></a></div><span style="font-family: verdana;"><br /><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The average rates of USD, Euros and GBP moved -11%, -8% and -10% respectively between Q3 2019 to Q3 2023. Lets call it -10%.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Therefore, in constant currency the revenues from Q3 2019 to Q3 2023 fell 2% (= (16.0/14.6) x (1-10%) -1)</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">However, between Q3 2019 and Q3 2023 there was a 30% increase in subscription prices and therefore that indicates that Omega Account numbers fell by 24% (= (16.0/14.6) x (1-10%) x (1/(1+30%)) -1)</span></div><div><span style="font-family: verdana;"><br /></span></div></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">The complete (translated) Transcript of the webcast is below:</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span><div section="Company-Participants"><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><b>Company Participants</b></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Jin-young Heo, Chief Executive Officer</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Seok Woo Cho, Chief Financial Officer</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Unidentified Speaker</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><b>Other Participants</b></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Jingu Kim</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><b>Presentation</b></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><b>Operator</b></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Good morning and good evening. First of all, thank you, all, for joining this conference call. And, now, we will begin the conference call of the fiscal year 2023 third quarter earnings results by Pearl Abyss. This conference call will start with a presentation followed by a divisional Q&A session. (Operator Instructions)</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Now, we shall commence the presentation on the fiscal year 2023 third quarter earnings results by Pearl Abyss.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Unidentified Speaker</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Hello. This is Peter Yu[ph] from the Pearl Abyss IR team. First of all, I would like to thank the analysts and investors from Korea and abroad for taking time to take part in the earnings call for fiscal year 2023 Q3 by Pearl Abyss despite your busy schedules.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Allow me to provide a few important notices. Today's earnings results have been prepared for the convenience of the investors and may be subject to change depending on the final closing results. Please note that the accuracy or completeness of the financial and operating results set forth in the earnings release is not guaranteed, and we do not undertake any obligation to update the materials, which speak to the date which they were made.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) With us today, we have CEO, Jin-young Heo; CBO, Gyeong Man Kim; and CFO, Seok Woo Cho. Mr.Seok Woo Cho, our CFO, will first provide a detailed explanation of our results and then proceed with Q&A.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Seok Woo Cho</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Hello. I'm Seok Woo Cho, CFO of Pearl Abyss. Thank you once again for taking time out of your busy schedules to participate in our company's earnings call.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) In Q3, we continued to deliver live services for our Black Desert and EVE IPs. The EVE expansion pack and new clips of the Crimson Desert were released, showing ongoing preparations for the future.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">First, I'd like to highlight some of our main business activities and highlights for Q3. Black Desert continued to deliver strong financial results, with user metrics improving significantly across all regions globally, mainly driven by the continued popularity and hype created by the Black Desert Festa in July and the update of the Land of the Morning Light. In fact, average monthly active users grew 36% Q-o-Q in Q3, the highest in the last two years.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">In Q3, we continued to make efforts to build on the popularity of Black Desert with the Ulu kita Hunting Grounds update, seasonal servers, and a variety of user-friendly patches. The Black Desert console has been performing well, with the highest user metrics in the recent two years following the release of the of the Land of the Morning Light, and the inclusion in the monthly games by PS Plus has resulted in huge popularity, boosting our user metrics.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Black Desert Mobile is carrying out continuous updates to be enjoyed, including updates of the Land of the Morning Light and new classes. In addition, Black Desert also participated in TwitchCon in Paris, where they organized an event for players to experience and enjoy the Land of the Morning content firsthand, and Black Desert Mobile hosted the Global Hideout Ball to announce updates for the second half and strengthened the user community.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">For EVE Online, we saw a slowdown in revenue in Q3 due to the base effect of the Viridian update we launched in Q2. However, we continue to see the strength of the EVE IP with new updates, and most importantly, the largest EVE Fanfest ever held to celebrate the 20th anniversary of service.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Notably, the event not only announced news about updates in the second half but also new titles in development, including EVE Vanguard and the EVE Galaxy Conquest. It was an opportunity to showcase EVE's new roadmap for the next decade, carrying on a successful legacy of 20 years in service.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) For Crimson Desert, we showcased a wide variety of content improvements within the game at Gamescom last August. In addition to the previously released trailer, we also released a clip on some parts that the users can experience with gameplay. After the release of the video, the official trailer reached more than 2 million views in one day, in particular, with many Korean game companies currently strongly focusing on establishing presence in the console market, the market is maturing and we are seeing a lot of interest coming from the partner companies.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Next, I will move on to explain our Q3 earnings results. Operating revenue for the quarter was KRW84.9 billion, up 8.3% Q-o-Q. Operating profit and net profit recorded KRW2.1 billion and KRW15 billion each, respectively, to turn positive.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Now, allow me to provide some more color on the operating revenue. First, the operating revenue by core IP. For the quarter for our Black Desert IP, we generated KRW68.4 billion in operating revenue of 21.1% Q-o-Q. Operating revenue for the EVE IP stood at KRW16 billion, down 20.8% Q-o-Q. By region, operating revenue breakdown was 27% in Korea, 20% in Asia, and 53% in North America and Europe. And by platform, 81% of our revenue came revenue came from PCs, 13% from mobile, and 6% from consoles.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Next, I will talk about the operating expenses. In Q3, operating expenses decreased by 10.5% Q-o-Q to KRW82.8 billion. Labor costs decreased 18% Q-o-Q to KRW40.7 billion. This decrease was due to the exclusion of the one-off incentive of approximately KRW8 billion from the previous quarter. As of the end of Q3, our headcount stands at 1,293, out of which 744 are in development positions, accounting for 58% of the total.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Commissions decreased 21% Q-o-Q to KRW14.4 billion. Advertising expenses increased 26% Q-o-Q to KRW10.1 billion due to various offline events, such as Black Desert Festa, Gamescom, and the EVE Fanfest.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Lastly, I will cover the key highlights for Q4. Black Desert will continue to deliver a wide variety of new contents in Q4. We recently launched the War of the Roses Pre-Seasons, a new type of large-scale PvP content, and plan to add new contents in December. The War of the Roses is a new type of PvP with new combat rules, aiming to give players a new sense of fun rather than a set of patterns of repetitions.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">In addition, we plan to improve the accessibility and usability of the game by reflecting recent user feedback to provide better services. The Black Desert console has recently updated three of its most popular Mythical Dream Horses in the online space. We're also planning to release the new class of Awakening Megu as part of our efforts to keep the user retention, which we have seen improvements in Q3.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">We will also follow up on various updates on the PC platform to ensure that we continue to build on the good progress we've achieved. On the mobile side, we want to keep things interesting by releasing a wide variety of new contents.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">In addition to content updates, we plan to increase our reach to global users through events such as Cafeon and the Adventurer's Oasis. EVE will also be providing various contents to service. Most notably the new expansion pack EVE Havoc is planned to be released soon, which will support more diversified game play compared to the as-is with new story elements to add more fun to the game.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">We are also preparing for the soft launch of EVE Galaxy Quest, which we announced at Fanfest. EVE Galaxy Conquest is a casual mobile version of the EVE IP that combines exploration, diplomacy, and PvP combat. We're checking those metrics after the soft launch, with a global launch plan for sometime in 2024. Also EVE Vanguard, an FPS expansion pack designed to bring EVE from ship scale to human scale, is undergoing preparations to be made available to select users from December.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">EVE Vanguard has been designed to create an organic relationship with EVE Online that goes beyond just playing an FPS game. It took the best parts of Dust 412, a different version of FPS of the EVE IP, and fixed the weak spots. And it has been designed to be both an expansion pack of EVE Online and have its own VM. We expect to see energy with EVE Online sales as well as increased sales of the EVE IP in the future.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">The highly anticipated Crimson Desert is gradually expanding its reach. Following Gamescom, we will be at G-STAR next week to discuss with various partners at our B2B booth to make preparations for a successful service. Being very mindful of the concerns expressed by many, we are prioritizing quality in our development, but we are also making the necessary preparations to not have the timeline extended too much.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) This year marks the 9th and 20th anniversaries for Black Desert and EVE, respectively, and we are preparing them for the next 20 or 30 years of long-term service. We will continue to strengthen the live service of both games and make thorough preparations for new titles based on the IPs to achieve good results.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">In addition, we will also make the utmost effort to develop new IPs, such as Crimson Desert, to build IPs that can last for more than 20 years. We ask for your continuous interest and support moving forward. Thank you.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Unidentified Speaker</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) This concludes our Q3 2023 earnings presentation. We will now proceed with the Q&A.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Questions And Answers</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Operator</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Question And Answer)</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Now, Q&A session will begin. (Operator Instructions)</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) The first question will be provided by Jingu Kim from Kiwoom Securities. Please go ahead with your question.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Q - Jingu Kim</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Thank you for the opportunity to ask questions. I have two questions in total, and the previous conference call I think there was a commitment that the development for the Crimson Desert will be completed in the second half of this year. I'm curious whether this commitment can be upheld. So if you can provide a more detailed timeline on the release, that would be much appreciated.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">And the second question is regarding the marketing strategy for Crimson Desert. In addition to the plans that you have already explained, for example, moving forward, do you have further plans to release additional trailers or video clips for long-term in-game or even different types of -- because cinematic video clips, because it is targeting and appealing, tried to be a AAA game. So if you have any further release plans for such trailers, it would be much appreciated if you could share.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">A - Jin-young Heo</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) So I will take that question. So in terms of Crimson Desert development, we're making much efforts to complete the final touches to the game, as we see the top quality and completeness of the game quality is much important. As we are targeting it to be AAA game on console or platform, we are working on to provide a story line to have much relevance and because, as we said, final touches and the level of quality and completeness is very important. So we are making the utmost effort to relive the quality we targeted.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">However, in order to provide the quality we have committed to, we do expect that it might take a little longer than we have expected. However, we are trying to not have a significant delay on the timeline. So, as much as we can, we will speed up the development so that we can release it to the users as soon as possible.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">So, currently, we are also ongoing in terms of the final discussions and agreements with partner companies in terms of finalizing the contract. So, please understand that we will not be able to share a detailed timeline on the game release as of now. But, as I mentioned before, we will try to stay quite up to speed so that we are not too late to the market, and we will try to speed up the development process to meet the users as soon as possible.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) In terms of marketing, for the past year, we have been taking various paths in terms of marketing. So we've been meeting with a lot of our partners to show demos and also gather feedback based on such comments, and we have continuously updating our game quality as a result.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Since Gamescom in August, I think there was also the rise of a lot of needs that they wanted more detailed gameplay trailers or clips to be available. So we also have high expectations ourselves to achieve good results. So additional trailers or clips for the playthrough, if we are meeting the expectation that we think that will satisfy the players, we will try to release them as soon as possible.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) During the upcoming G-STAR next week, we will be setting up a B2B booth so that we can demo our game to the partner companies to gather feedback, and we will use that as our cycle to improve the quality of the game even further. As we are in the final stages of the development, we will also be mindful of how we can strengthen our marketing activities as well.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">A - Unidentified Speaker</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) That was the answer by our CEO, Jin-Young Heo. (Foreign Language) We'll now take the next question.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">Operator</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Currently, there are no participants with questions. (Operator Instructions)</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">A - Unidentified Speaker</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">(Foreign Language) Currently, I don't think there are any more participants with questions.</span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;"><br /></span></div><div class="transcript-section-label" style="box-sizing: border-box; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><span style="font-family: Avenir-Bold, sans-serif;">So with that, then we will conclude our Q3 2023 earnings call. Thank you very much for joining us today.</span></div><div class="transcript-section-label" style="box-sizing: border-box; font-family: Avenir-Bold, sans-serif; font-weight: 600; margin-bottom: 0.83em; margin-top: 1.2em; position: relative;"><br /></div></div></div></span></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com2tag:blogger.com,1999:blog-1597676555600759067.post-59677517057036332062023-10-29T20:52:00.000+00:002023-10-29T20:52:03.916+00:00Becoming a trillionaire - Fanfest 2023 Talk by Eden Trade<span style="font-family: verdana;">At this year's Fanfest, <a href="https://evewho.com/character/2114885467" target="_blank">Eden Trade</a> gave a talk on how <a href="https://www.youtube.com/watch?v=FDBeRL8j9rg" target="_blank">he became a trillionaire in Eve, titled "becoming a tycoon"</a>.</span><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Well worth listening to, good slides, very open and takes 45 minutes.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The Journey started in 2019 and today Eden Trade is making 60bn isk profits per month and is aiming for 100bn per month. He has 60 trade characters, so thats 20 accounts that be spends 40-50bn isk per month for Omega.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">There are always three parts to this type of talk i enjoy</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">1) the strategy and the evolution of the business model from the start to today</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">2) the excitement of the journey as milestones are reached, the ups & downs and then the 1 trillion is hit.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">3) future plans</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">The Strategy and Business Model</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The strategy of Eden Trade is to create new market hubs in High Sec outside of the main trading hubs and to sell items that have decent daily volume.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">He buys from Sell Orders in Jita, has the items couriered to his Trade locations and puts them up for sale for around a 25% market up.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">He faces next to no competition and so has great sales and profit margins.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">He is very open, he shows us where is trade locations are and what he typically sells (ammo is the second biggest item!, Rigs the highest, weapons in number three followed by mining equipment).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">He goes through how his strategy and business model has evolved over time and a more recent inclusion of a data person will likely result in a further evolution of the business model to move away from items that don't sell.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">And good slides on the lessons he has learned, how he chose the locations.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In summary, he is filling a gap in the market where demand clearly exists. Like me, he exists because people will value their time highly and so will not make the journey to Jita to buy items if these items are available closer to them at a higher price.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">The journey to becoming a trillionaire</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Eden Trade takes us through 2019 to today, showing the ups and downs. How he initially had investors that have since all been repaid.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Always exciting to listen to the point where a business model is bedded down enough to gather momentum on its own.</span></div><div><br /></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Eden Trade information</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Eden Trade has his own <a href="https://www.youtube.com/channel/UCPoRwth69mIL64L-DINF_nw/videos" target="_blank">youtube channel</a> and <a href="https://discord.gg/MJGSudP" target="_blank">discord server</a>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">He is also an investor on the <a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ&list=PLaxcoa5D_uSmWLGSBnQ-4dNJRdTuFwL1q" target="_blank">Oz Tank show</a> (a show where Eve players pitch ideas, whether content of investment ideas, to trillionaires who then decide how much to contribute.</span></div><div><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-17434524300913773352023-10-23T00:36:00.005+01:002023-10-23T00:36:48.351+01:00Month end update - August / September 2023<span style="font-family: verdana;">Busy times, i was away for half of September.</span><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Profits after everything including Plex</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In August my profits were 39bn isk and in September my profits were also 39bn isk, after paying <span style="color: #222222;">8.2</span><span style="color: #222222;">bn in each month to upgrade to Omega for another 30 days for four accounts.</span></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">August was a typical slow summer month where as September i was only around for half of it.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That said, October is proving to be a slow month which is surprising me.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Distributions made</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">From those profits i distributed a total of 55bn isk to the <a href="https://marketsforisk.blogspot.com/2023/08/the-oz-tank-show.html" target="_blank">Oz Tank Show</a>, making my total distributions made or due to the <a href="https://marketsforisk.blogspot.com/2023/08/the-oz-tank-show.html" target="_blank">Oz Tank Show</a> to 98bn isk.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">At the start of October, i distributed or promised a further 77bn isk.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">My aim is to distribute all the profits i make.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So, to put this in context in July onwards i have made profits of 132bn isk and distributed 98bn isk. Then add in the 77bn distributed in October.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Total Wealth</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Therefore, at the end of September my total wealth was 1.16 trillion isk.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">What i am selling</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Same as usual - Implants, Blueprints, ship equipment.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">There is a competitor for the Blueprints in a few of my trading locations now. Updating their prices daily. Will be a battle of attrition.</span></div><div><br /></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Current Wealth</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><div style="color: #222222;"><span style="font-family: verdana;">Current wealth is <span style="color: red;"><b>1.16 trillion </b></span>ISK made up from:</span></div><div style="color: #222222;"><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Plex held as an investment 0bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for sale 26bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for use in business 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Omega brought forward 8bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Buy orders on the market 51bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">items for sale 1.2 trillion ISK</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">less a 20% provision 238bn ISK*</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">ISK in wallet 128bn ISK from which 20bn of Oz Tank distributions need to be taken off</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">When i add up my wealth, I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc. The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK or are used to generate isk that can be readily resold back onto the market. Any ships or skills or fittings etc i buy are counted as expenses in that month. The only exception to this rule is Blueprint Originals i use for manufacturing. They are held at cost.</span></div><div style="color: #222222;"><span style="font-family: verdana; font-size: xx-small;"><br />* I take a 20% provision against the items I am selling. Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK). For me, I want my wealth to be calculated at cost. I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold. Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold. In an ideal world I would value my sell orders at the value which I bought the items for.</span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-1060786167648448932023-10-15T14:21:00.003+01:002023-10-15T14:21:40.972+01:00Plex / Omega deal - 3 months is great value<div style="text-align: left;"><span style="font-family: verdana;">For the first time in a long time the 1 month Omega cost has been discounted from 500 Plex to 350 and the 3 month Omega cost also discounted from 1200 to 1050 (it had sat on a long term discount from 1500 to 1200 previously).</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">This deal closes on 17 October and is available on the New Eden Store.<br /><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The cost of the other Omega times had not changed from their long term discounts.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">As ever, the question is what is the best deal and the answer to that really depends on how you use your ISK in the game.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">The thought process for an ingame business to decide which is the best deal</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">For me, i operate an ingame business and so the answer is not as clear as it may first appear to be.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">For example, if i chose to buy 3 month Omega for all my 4 Omega accounts i would be spending 21bn isk vs the more usual 23bn, if no discount at all is given, 29bn. But the calculation does not stop at comparing the 21bn cost to the other costs i would have paid.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I need to ask myself what 21bn invested into my business would have done. Maybe the answer is just to take the 1 month deal for now, who knows.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Fortunately, i can work this out by asking myself the question of what my business would need to return each month if i decided to invest in the one month Omega each month instead of taking the 3 or 6 or 12 or 24 month deals:</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEg3mkxKse4pMfxNnpGUlskKku0wmd8BdhiDnVWVUjQC7CG333D6y00ZUDeri_ubV4yDupBcnl6cyuErRME9xYI_-915OkN3aJDYJgzpdyQ_Dypyst1e5Jusevc2SIGyVSeu8EcpQ-0XVkrDWAcILwb43uBAKKnsihCh8nj2O9qfT5bruJ8gTuUf3jNH3YJP" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img data-original-height="199" data-original-width="965" height="132" src="https://blogger.googleusercontent.com/img/a/AVvXsEg3mkxKse4pMfxNnpGUlskKku0wmd8BdhiDnVWVUjQC7CG333D6y00ZUDeri_ubV4yDupBcnl6cyuErRME9xYI_-915OkN3aJDYJgzpdyQ_Dypyst1e5Jusevc2SIGyVSeu8EcpQ-0XVkrDWAcILwb43uBAKKnsihCh8nj2O9qfT5bruJ8gTuUf3jNH3YJP=w640-h132" width="640" /></span></a></div><span style="font-family: verdana;"><br />The key column in the table above is the last column. This tells my what my monthly return on my business must be to do better than taking the Omega deal. (the working process is at the bottom of this post).</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The clear winner is the 3 month deal where my business would need to do better than 51% returns each month - that is unlikely to happen.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><b><span style="font-family: verdana;">The calculation process</span></b></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">What i do is compare two assumptions. Lets use an example of the 3 month Omega deal:</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">If i go for it then i would spend 5.1bn isk per account vs the normal cost of 7.4bn isk, so a saving of 2.2bn isk for what is a 30% discount.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">However, i must also compare this to taking that 5.1bn isk, buying a one month Omega and investing the rest in the business. Then taking buy the next month Omega the following month from the profits and so on until the end of month 3. For this to be a better use of the isk i need to work out what the monthly return needs to be - in this case for the 3 month Omega it is 51% each month.</span></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-91919308621569930952023-08-24T00:45:00.002+01:002023-08-24T00:45:54.651+01:00Month end update - July 2023<div style="text-align: left;"><span style="font-family: verdana;">As at the end of July 2023 my wealth is <b>1.13 trillion</b></span><span style="font-family: verdana;"> ISK</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">after paying 8.2</span><span style="font-family: verdana;">bn to upgrade to Omega for another 30 days for four accounts.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I am an Investor on the <a href="https://marketsforisk.blogspot.com/2023/08/the-oz-tank-show.html">Oz Tank</a> and during July i distributed 42.5bn isk to projects that were presented.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Hence, in July i generated profits of <b>54.0bn</b> isk and distributed 42.5bn isk, therefore my wealth rose by <b>11.5bn</b> isk.<br /></span><br /></div><div style="text-align: left;"><span style="font-family: verdana;">Technically, <b>my wealth is 1.4 trillion ISK </b>but i always take a 20% provision against Sell Orders to be conservative. Hence i quote <b>1.13 trillion</b>.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Much like June, July was was a slower month and August is shaping up to be much the same.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">Quick Summary of July</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">A slower month vs June and much more like a summer month. Some days did not happen and some hit the jackpot.</span></div><div><br /></div><div><span style="font-family: verdana;">That said, sales actually rose 3% vs June.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">But profits fell 12%. For the first time in since November 2021 my item market was below the target 25% at 24.4%.</span></div><div><br /></div><div><span style="font-family: verdana;">In the last 12 months i have made sales of 4.4 trillion isk and profits (after everything including Plex but before distributions to the Oz Tank Show) of 732bn isk having spent 84bn on Plex.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">And then i distributed 43bn to the Oz Tank Show.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>The next goal</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">For the last 9 months, my daily profits have been around 2.6 billion isk generated by daily sales of over 10bn. From this i need to take the Plex off but i have long left the days of trying to make 10bn profits in a month and then 1bn per day.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">We are onto new higher levels.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So the aspiration is now if i can make 100bn profit in a month before Plex and Distributions. That is likely a winter aim when things rack up. But an aim nonetheless.</span></div><div><span style="font-family: verdana;"><div><br /></div><div><span style="font-family: verdana;"><br /></span></div><div><b>Activity</b></div></span></div><div><div><span style="font-family: verdana;"><div style="font-family: "Times New Roman";"><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I continue to come on once a day to update Sell orders and replace items sold. About 30-45 minutes. Getting closer to 45 minutes these days.</span></div><div><span style="font-family: verdana;"><br /></span></div><div>There are some week days where i don't log in at all if sales are low (summer can be slow) and/or real life time is tight.</div><div><br /></div></span></div><div><br /></div><div><span style="font-family: verdana;"><b>Target daily sales required to achieve 2 </b></span><b style="font-family: verdana;">bn profits per day</b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In summary, i generally need to make around 15bn sales per day assuming my item margin is 25%</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">As the cost of plex rises then my daily sales requirement also rises.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">On the current taxation levels to make 60bn ISK per month (=2bn per day) i would need to cover:</span></div><div><span style="font-family: verdana;"> - Plex costs of 4 x 500 x 4.7m = 9.4bn</span></div><div><span style="font-family: verdana;"> - Courier costs 2% of sales (i.e. = purchase cost + collateral)</span></div><div><span style="font-family: verdana;"> - Broker Listing fees 1.5% of sales</span></div><div><span style="font-family: verdana;"> - Broker re-listing fees 0.3% of sales (lets assume all sales changed at least five times per month)</span></div><div><span style="font-family: verdana;"> - Transaction Taxes 3.6% of sales</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That all works out at 425bn monthly sales will generate profits, after all costs including Plex, of 60bn isk. = 14.2bn daily sales.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Bottom line is that assuming i make my 25% profit margins then each 1bn of sales creates profits of 164m and these go towards buying Plex for the Omega accounts and whatever is left is reinvested in the business.</span></div><div><br /></div><div><br /></div><div><span style="font-family: verdana;">Looking at some sensitivity analysis</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">- if my item margins were 28% instead of 25% then i need only make 360bn isk of sales (or 12bn per day)</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">- if Plex rose from 4.7m to 5.0m then then i need to make 430bn isk of sales (or 14.3bn per day)</span></div><div><br /></div><div><br /></div><div><br /></div></div><div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><b>Review of the July </b></span></span><b style="font-family: verdana;">aims</b></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div></div><div style="color: #222222;"><span style="font-family: verdana;">Overall, the aim was to keep sales from falling 20% - same as June</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;"><div style="font-family: "Times New Roman";"><span face=""><span style="font-family: verdana;">1) Plex the four omega accounts - aim number one all the time</span></span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved</span></div><div style="font-family: "Times New Roman";"><br /></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;">2) Hold sales in Dodixie to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 49%</span></div><div style="font-family: "Times New Roman";"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="font-family: "Times New Roman";"><span face=""><span style="font-family: verdana;">3) Hold sales in Amarr</span></span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- missed, down 23%</span></div><div style="font-family: "Times New Roman";"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;">4) Hold sales in Rens</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 20%</span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;"><br /></span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;">5) </span><span style="font-family: verdana;">Hold sales in Hek</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- missed, down 27%</span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;"><br /></span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;">6) Hold sales in Sobaseki</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 9%</span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;"><br /></span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;">7) Hold sales in Tush-Murkon Prime</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 4%</span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;"><br /></span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;">8) Ramp up Arnon and Alentene</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- ongoing</span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;"><br /></span></div><div style="font-family: "Times New Roman";"><span style="font-family: verdana;">9) Hold the investment and profits in Manufacturing</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, profits up to 1.5bn</span></div></span></div><div style="color: #222222;"><br /></div><div><span style="font-family: verdana;">On balance, a better month than expected for sales, weaker on margins so on balance a success.</span></div><div><br /></div><div style="color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><b>Reminder of my Current Business.</b></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">For now 99% of what i do is inter-regional trading - buying from Sell Orders in Jita to sell elsewhere. The rest is made up from Manufacturing and some Station Trading in Jita.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;">For Trading i focus on slow moving but high margin items. That keeps me away from fierce competition and i only need to sell an item once every 10 days to make good income. In other words, i don't really care if an item sells once every 10 or 20 days, if have many hundreds of items for sales across Eve and so each days a few items will sell and that generates all my income.</span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;">To put this in perspective. I had Sell Orders of 1.2 trillion up at the start of July which generated sales of 394bn. In other words, i sold between 1% to 2% of everything i had for sale every day. That is slow and i like it. Not for me the cut and thrust of high volume low margin world. Slow and easy for me. Tortoise and hare stuff.</span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="color: black; font-family: "Times New Roman";"><span style="color: #222222; font-family: verdana;">My business model evolves over time. As my wealth increases i focus on higher value items. Therefore, i try also to stick to the rule of making a minimum of 100m profit per item sold. </span><span style="color: #222222; font-family: verdana;">i.e. if i buy an item for 70m then i aim to sell it for at least 170m isk. This makes sure i don't waste my time on making low absolute profits and so preserves the 45 minute rule.</span></div></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">My main business is operated with four omega accounts (paid for with plex) with twelve alts.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">The main Trading alts (all Omega) sit in Dodixie, Amarr, Rens and Hek. I have also omega alts in the new Trading locations of Sobaseki (in Lonetrek), Tash-Murkon Prime (in Tash-Murkon), Arnon (in Essence) and Alentene (in Verge Vendor).</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;">The other Omega four alts sit in Jita and buy from Sell Orders, has these items couriered to the alts in Dodixie / Amarr and Rens / Hek and Sobaseki / Tash-Murkon Pime and Arnon / Alentene who then put them onto these markets for sale.</span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;">The Jita alts also serve to sell items that i can no longer sell in my trading locations Sort of clearance sales.</span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;">I also started in December 2021 to place alpha alts in other regions to see how it goes. I just need two of them to demonstrate that they can combine to justify an Omega account. Also, they need to take up very little of my time. So far the Sobesaki / Tash-Murkon alts and Arnon / Alentene made the grade and were upgraded in two accounts.</span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">The other regions so far are: Placid; Citadel and Khanid. And i am in an NPC station in Delve and Outer Ring. </span><span style="color: #222222; font-family: verdana;">I have started in Venal.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I am struggling to make the Low Sec locations work.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>What do i sell?</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><div>I sell blueprints, skill books, implants and ship equipment.</div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I am trialling selling structures like jump gates, stations, station modules and other infrastructure items. This is doing better than i expected.</span></div><div><br /></div><div><br /></div></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>What was selling in July?</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Implants, structures and ship equipment did well. Blueprints picked up a bit.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">There is still a Blueprint competitor in Dodixie and Amarr who i am fighting. They seem to be on 24/7.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Implants are still doing well and tend to be the most competitive - i am slowly expanding into more types and moving up the ISK value curve. And rolling them out to all my Trade Hubs. </span><span style="color: #222222; font-family: verdana;">They don't sell quickly but when they do i tend to get a whole family sold at a time (alpha, beta, delta, epsilon, gamma, omega). Again, that's how i like it. A 1-5 billion or so of investment can take 30 days to sell.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><div><br /></div><div>Ship equipment is a staple revenue stream for me. Especially Vorton items. and Deadspace items.</div><div><br /></div><div>Mining equipment is making a comeback of sorts but is competitive.</div><div><br /></div><div>Skill books are now my lowest income generator - very few sales now. Barely happening at all.</div><div><br /></div><div><br /></div></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Jita</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I do station trading in Jita (that is - put Buy Orders up in Jita and then when those Buy Orders are executed i then put the item up for Sale in Jita at a higher price). I stick to the slow moving items again. That said, i don't actually know how much this earns me but i know it is getting better. The margins are huge. I am buying items for 500m and selling them for 1bn.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Also, in JIta, i manufacture items and sell them in the Jita market.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><b style="color: #222222; font-family: verdana;">Manufacturing</b></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">I am now twelve months into my Manufacturing project. It remains slow and i need to up my game (i know, i said that before).</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">In July i made 7bn of sales generating an item profit of 1.9bn and so after taxes a profit of 1.5bn.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">Still not great. I need to put more time into this and think it through more.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Other High Sec Trading Locations</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I don't want to spend all my time on Eve doing Regional Trading (buying from one region, mainly Jita, to sell to another) but i do want to see if i can find really low competition but stable revenue streams of trading.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">The current alpha account regions so far are: Placid; Citadel and Khanid. And i am in an NPC station in Delve, Outer Ring and now Venal.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">My alts in Arnon and Alentene were upgraded to Omega during January.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">In these alpha accounts i am winding them down. I don't want to convert anymore to Omega.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Delve</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I want to experiment with selling in null/low Sec. Hence, i have found an NPC station in Delve and started experimenting with items to sell.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">It is not going well - sometimes threatens to improve but then fall back again.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">As with my other alpha accounts i am letting it wither away on the vine.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I am rethinking how to make low/null sec work.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Plex</b></span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">I am aim to store up to 6 months of Omega for each of the Omega accounts which would mean buying 12000 Plex (= 6 x 4 x 500).</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">That said, CCP are changing their attitude to Omega prices and there is a permanent sale on that gives a discount to the Plex required for longer periods of Omega purchases.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">Given my sale at the start of June i currently hold none. When the price falls back to around 4.6m i will start to rebuild stocks.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><b>Analysis of Trading Profits</b></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><b><br /></b></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">In total i made 394bn ISK of sales in July which made me item profits of 96bn ISK.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">(item profit is the simply difference between sales done vs costs spent buying products, so before fees and taxes. Because i don't yet invest in items other than Plex i don't make any allowance for items still in stock - in part because i don't track the cost per item spent).</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Overall, sales rose by 3% in July mainly due to Dodixie sales rising 49% to 120bn isk.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Amarr sales fell 23% and Hek sales fell 27%. Whilst Rens rose 20% and the other stations rose under 10%.</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Sobaseki at 41b overtook Hek to become the fourth best station after Dodixie, Amarr and Rens. I did not expect that but this was mainly due to Hek declining 27%. Even Jita did better than Hek in July.</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Sobaseki + Tash murkon did 59bn whilst Arnon + Alentene did 29bn. So both of these Omega accounts are more than justifying themselves.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">The item profits of 96bn was an item margin of 24.4% (96/394) vs my target of 25%. That was the first time since March 2022 that the item margin fell below 25%. The miss was due to competitors putting up items for sale at much lower prices and me responding aggressively. It is dangerous to allow a competitor a foothold into my markets.</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">From this I then need to take a whole series of costs off before i get to my Business profits (and notice how they are more related to Sales rather than costs):</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;"><b><span style="color: red;">Courier Fees</span></b><span style="color: #222222;">: i aim to pay 2% of sales value to the Courier = 7.9bn</span></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span><b><span style="color: red;">Sales tax</span></b><span style="color: #222222;"> cost me 13.0bn ISk (=3.3% of sales) - </span></span></span><span style="font-family: verdana;"><span><span style="color: #222222;">the Dodixie, Amarr, Rens, Hek Sobaseki, Tash-Murkon, Arnon and Alentene and Jita characters are leve</span></span></span><span style="font-family: verdana;"><span style="color: #222222;">l 5 in</span><span style="color: #222222;"> </span><a href="https://wiki.eveuniversity.org/Skills:Trade#Accounting" target="_blank">Accounting</a> (=sales tax of 3.6%); and of course all the alpha alt accounts are only Level 1 (=sales tax of 8%). Not sure why the tax rate is below the base.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;"><b><span style="color: red;">Broker Fees</span></b><span style="color: #222222;"> costs me 12.5bn (=3.7% of sales, Dodixie is more competitive so i was changing prices more often). Now, i can break this down into the initial listing fee of 1.5% (because i am Level 5 </span><a href="https://wiki.eveuniversity.org/Skills:Trade#Broker_Relations" style="color: #222222;" target="_blank">Broker Relations</a><span style="color: #222222;"> on all Omega characters and lets to make the sums easier and include all the alpha alts) and therefore the rest is the cost of changing the price which is 0.30% a shot (i may have that 0.30</span></span><span style="color: #222222; font-family: verdana;">% completely wrong!).</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">So, Listing Fee = 1.5% x 394= 5.9bn and so the Relisting Fee = 12.5-5.9 = 6.6bn which is 1.7% of sales. That shows that i do change prices quite often, bias to Amarr, Jita and now Dodixie.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Manufacturing Job Cost fees were 0.4bn - shows how little i did.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">This takes my 'Business Profits' fell to 62b</span><span style="font-family: verdana;">n ISK for July vs 74bn in June. This is what 30-40 minutes a day in July gave me.</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">So, the post-tax margin is 15.8% (62/394) and so i achieved the 15% target.</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">The omega charge was then 8.2bn for July.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">And, finally, i paid over 42.5bn to the Oz Tank show for projects i agreed to contribute to.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">That, therefore, is the road map from 394bn sales to 12bn increase in wealth.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><div><br /></div><div><br /></div><div><b>Courier Contracts</b></div></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Each night, i get home from work and determine what i need to sell in all the locations.</span></div><div><span style="font-family: verdana;"><br /></span></div><div>The time is taken changing prices were necessary (especially Amarr given it is competitive and increasingly Dodixie) and then figuring out what to sell with the ISK made from the prior 24 hours sales.</div><div><br /></div><div>I have a list of items that feature regularly and i add to this list as time goes by. So is a case of checking Jita prices vs current location prices.</div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The Rens, Hek, Sobaseki, Tash Murkon, Arnon and Alenetene markets take less than 2 minutes each to check.</span></div><div><br /></div><div><span style="font-family: verdana;"><div><span style="font-family: verdana;">To look up prices in Eve I am using </span><a href="https://evetycoon.com/market" target="_blank">Eve Tycoon</a><span style="font-family: verdana;"> which seems to have more of the latest items in its market browser. I used to use </span><a href="https://evemarketer.com/" target="_blank">evemarketer</a><span style="font-family: verdana;"> but i just got used to </span><a href="https://evetycoon.com/market" target="_blank">Eve Tycoon</a>.</div><div><br /></div></span></div><div></div><div>Each night i courier about 10 to 50bn ISK of items from Jita. Used to be 2-10bn but things are better these days and i have more items up for sale. The total cargo volume is 10-250m3 per shipment though more recently often over 10,000m3. So small but valuable items. But this allows the couriers to use small, fast ships with much less chance of being ganked. So there is always someone willing to pick up the contract quickly.</div><div><span style="font-family: verdana;"><br /></span></div><div>I pay a generous 1.5 to 2.0% of collateral as fees. I am more interested in getting my items onto the market quickly than penny pinching on distribution costs.</div><div><br /></div><div><br /></div></span></div><div style="background-color: white;"><div style="color: #222222;"><b><span style="font-family: verdana;">Outlook<br /></span></b><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">August will have the same ten conservative aims - summer can be slow. </span></span><span style="font-family: verdana;">Hence, the aims will be:</span></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">1) Plex the four omega accounts - aim number one all the time</span></span></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><span style="font-family: verdana;">2) Hold sales in Dodixie to down 20%</span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">3) Hold sales in Amarr</span></span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span style="font-family: verdana;">4) Hold sales in Rens</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">5) </span><span style="font-family: verdana;">Hold sales in Hek</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">6) Hold sales in Sobaseki</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">7) Hold sales in Tush-Murkon Prime</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">8) Ramp up Arnon and Alentene</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">9) Hold the investment and profits in Manufacturing</span></div><div style="color: #222222;"><span style="font-family: verdana;"> </span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div><span style="color: #222222; font-family: verdana;">The daily sales in June averaged 12.7bn.</span></div><div><br /></div><div><span style="font-family: verdana;"><span style="color: #222222;">Current wealth is </span><span style="color: red;"><b>1.13 trillion </b></span></span><span style="color: #222222; font-family: verdana;">ISK made up from:</span></div><div style="color: #222222;"><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Plex held as an investment 0bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for sale 24bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for use in business 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Omega brought forward 25bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Buy orders on the market 65bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">items for sale 1.2 trillion ISK</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">less a 20% provision 240bn ISK*</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">ISK in wallet 94bn ISK from which 42.5bn of Oz Tank distributions need to be taken off</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">When i add up my wealth, I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc. The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK or are used to generate isk that can be readily resold back onto the market. Any ships or skills or fittings etc i buy are counted as expenses in that month. The only exception to this rule is Blueprint Originals i use for manufacturing. They are held at cost.</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span><span style="font-family: verdana; font-size: x-small;">* I take a 20% provision against the items I am selling. Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK). For me, I want my wealth to be calculated at cost. I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold. Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold. In an ideal world I would value my sell orders at the value which I bought the items for.</span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-50041033870441570892023-08-12T16:36:00.000+01:002023-08-12T16:36:05.741+01:00Pearl Abyss Q2 2023 results<div style="text-align: left;"><span style="font-family: verdana;">Last week, Pearl Abyss, the owner of CCP, had its second quarter results.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Nosy Gamer has also done a good writeup on <a href="https://nosygamer.blogspot.com/2023/08/pearl-abyss-q2-2023-earnings-call.html" target="_blank">his blog</a>.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The entire transcript including the question and answer session is at the bottom of this post.</span></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>Just looking at Eve Online</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">In Korean Won, Eve Online (so PC and Mobile) rose from 17.7bn Won in Q2 2022 to 20.2bn in Q2 2023, a rise of 14%. (Was 16.9bn in Q1 2023).</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Always best to compare to the same quarter in the prior year - this therefore avoids seasonal factors.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I looked at currency, the USD was broadly flat Q2 2022 vs Q2 2023.whilst the Euro got 5% stronger.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">So, for now, lets leave currency out of it though not forget it perhaps added a 1-3% to the revenue growth in Won.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Q2 2022 was when we saw the 30% monthly subscription price rise which came into affect in May 2022. It would have taken a while to affect the entire player base but i suspect now is.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">So, Pricing is up 30% and overall revenues are up 14%, that suggests (paying) account numbers are down around 12-15% vs Q2 2022. That will not be the same as players given some players will have dropped an account or more but stayed with at least one account.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>What did Pearl Abyss actually say about Eve?</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">From the translated transcript which is at the bottom they said the following about EVE:</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">"<i>In the case of EVE Online, which did not have major competition launches like Black Desert, in Q2 it was able to enjoy a IP effect, which have been accumulated until now. In addition, we have an event which celebrated its 20th year anniversary and had an update, which completed a new expansion pack Viridian. In particular, we added detailed new tools in this expansion pack and it is praised as being the essence of EVE Online, which has been accumulated for the past 20 years. Accordingly, there was a great increase of users and EVE IP sales increased around 20% and recorded highest sales among the past five quarters.</i>"</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">"<i>EVE IP operating revenue recorded KRW20.2 billion and increased 19.4% Q-o-Q.</i>"</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><div><span style="font-family: verdana;">"<i>EVE also is planning to offer diverse content and service. In particular in Q3, we plan to hold the Alliance Tournament which is a 10to10 PvP event. We are planning to hold Alliance Tournament as an event where the best members of each alliance engage in combat and others can cheer them on and users can solidly unite.</i></span></div><div><span style="font-family: verdana;"><i><br /></i></span></div><div><span style="font-family: verdana;"><i>Most of all, EVE celebrates its 20th anniversary this year and we are preparing for the biggest ever fan fest this year. The fan fest which will be held in September will not only be a festival for users that enjoy live service but also introduce diverse genre games which utilize EVE IP that we have been preparing and we have plans to share these plans at the festival as well.</i></span><span style="font-family: verdana;">"</span></div></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><span style="font-family: verdana;"><b>What does the market think about CCP / Eve Online?</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The analysts who write about Pearl Abyss, as usual, never make any mention of Eve Online or CCP. They see it as a revenue line in their models that has matured.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>Looking at the overall results of Pearl Abyss</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">They looked weak to me on revenues and produced an overall loss but hoped of a better Q3</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">In Korean Won, revenues fell 17% vs Q2 2022 (it is best to compared to Q2 2022 rather than Q1 2023, irons out seasonality). This, i think, was less than was hoped and was due to lower than hoped revenues from Black Dessert mobile and Black Desert PC. Diablo 4 released in June can't have helped the PC version where as more competition in Korea mobile gaming will have been a headwind to the mobile version. This, therefore, continues the ongoing revenue decline from Black Desert.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">But, the company is hoping for a better Q3 given they are seeing improving user traffic in Black Desert PC following a well received update (player numbers were up 65% in July 2023 vs July 2022) and this is continuing into August.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">They are also showing a new trailer for Crimson Desert at Gamescom this month (23-27 August in Cologne, Germany) - though no news of any launch and pricing.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">What makes Pearl Abyss different to other Korean gaming companies is that Pearl Abyss targets a global audience vs other Korean gaming companies which target the smaller domestic audience.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The lower revenues, ongoing wage inflation pressures and higher marketing costs to fight back against the competition pushed the company to an operating loss of 14bn Won. That all came to a final loss of 4bn.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">And so the shares were actually up 7% over the week.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>The entire transcript of the earnings call</b></span></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><div>Operator</div><div>Good morning and good evening. First of all, thank you all for joining this conference call. And now we will begin the conference call for the Fiscal Year 2023 Second Quarter Earnings by Pearl Abyss. This conference call will start with a presentation followed by a divisional Q&A session. (Operator Instructions) Now we shall commence the presentation on the fiscal year 2023 Second quarter earnings results by Pearl Abyss.</div><div><br /></div><div>Speaker</div><div>Greetings. I am Kim Yoon[ph] from Pearl Abyss IR team. First of all, I express my deepest gratitude to the analysts and investors in and out of Korea for taking part in the 2023 Q2 Pearl Abyss earnings presentation despite your busy schedules.</div><div><br /></div><div>Before elaborating on today's business results, I would like to ask for your understanding regarding the following: the financial and business results contained in today's earnings release have been prepared for the convenience of investors and is subject to change depending on the final closing of our books. In addition, the accuracy and completeness of the financial and business results in the earnings results material are not guaranteed and the company is not to obliged to give updates of the accounts given after this date, so please take these factors into consideration.</div><div><br /></div><div>We have here with us at the earnings presentation today Pearl Abyss' CEO, Heo, Jin-young; CBO, Kim, Geong Man; and CFO, Joh, Seokwoo. We will first hear the business performance presentation highlights from CFO, Joh, Seokwoo, and then engage in a Q&A session.</div><div><br /></div><div>Seokwoo Joh</div><div>Greeting.s I am Pearl Abyss' CFO, Joh, Seokwoo. Thank you once again for taking part in our company's earnings conference call despite your busy schedules.</div><div><br /></div><div>During the past couple of months, there were many implications for the game industry. In the case of the PC market, we were able to feel how important IP was through the high performance of IPs with legacy leading the market. In the case of the mobile market, competition was getting fiercer, profitability was declining, and accordingly the importance of the console market was getting more important. To keep in step with this market situation during the past several months, we were able to experience both the positive and negative aspects while operating our service.</div><div><br /></div><div>Now I will touch upon the Q2 major business activities and results from core IPs. Black Desert was able to expand the new zone Land of the Morning Light globally around the world, which first launched earlier in Korea in March and received great response. Land of the Morning Light, thanks to detailed background based on excellent graphics as well as a highly immersive story received higher claim from overseas media and users. The update of Land of the Morning Light which received higher claim from Summer Game Festa with content at the level of a new game recorded 81 scores, 81 metascore for a PC game and received historic record high score among all Korean Games. However, due to the high performance of major PC and console RPG competitors, large scale execution of Global Marketing of Land of the Morning Light was delayed and, accordingly, there were not significant financial results in Q2 with the update.</div><div><br /></div><div>Afterwards, the Black Desert Festa was held on July 1st and thanks to the continuously improved game user convenience, Land of the Morning Light update with the storytelling improvement, which was previously pointed out as a weakness, and the content which was accumulated for the past nine years, we were able to have a great increase in new and returning users. I will go over this once again in the Q3 highlights.</div><div><br /></div><div>Also in the case of Black Desert console, due to influence of large global titles with IP legacy in Q2, sales was weak. We launched Megu Class and Usa Class Awakening which received good reviews in PC and mobile and continued a positive user trend. In Black Desert Mobile, due to the fiercer competition of the mobile market after the rebound in the previous quarter, sales showed a declining trend.</div><div><br /></div><div>However, we launched the new zones Everfrost and Guardian Class in June and maintained positive user reviews. In the case of EVE Online, which did not have major competition launches like Black Desert, in Q2 it was able to enjoy a IP effect, which have been accumulated until now. In addition, we have an event which celebrated its 20th year anniversary and had an update, which completed a new expansion pack Viridian. In particular, we added detailed new tools in this expansion pack and it is praised as being the essence of EVE Online, which has been accumulated for the past 20 years. Accordingly, there was a great increase of users and EVE IP sales increased around 20% and recorded highest sales among the past five quarters.</div><div><br /></div><div>Next, I will go over Q2 performance. This quarter's operating revenue posted KRW78.4 billion and decreased 8.6% Q-o Q and operating loss and net loss posted KRW14.1 billion and KRW4.4 billion respectively and posted loss.</div><div><br /></div><div>I will explain in more detail about operating revenue. First, operating revenue by core IP. Operating revenue for Black Desert IP in this quarter posted KRW56.5 billion and decreased 16.3% Q-o-Q. EVE IP operating revenue recorded KRW20.2 billion and increased 19.4% Q-o-Q. For operating revenue by region, it was 21% for Korea, 22% for Asia and 57% for North America and Europe. For operating revenue by platform, it was 79% for PC, 16% mobile and 5% for console.</div><div><br /></div><div>Next, I will walk you through our operating expenses. Q2 operating expenses posted KRW92.5 billion, a 9.2% increase Q-o-Q. In the case of labor expenses, it was KRW49.6 billion, a 12% increase Q-o-Q. This was an increase including around KRW7 billion of incentives including treasury shares. For your reference, head count at the end of Q2 is 1,341 employees and there are 801 developers among the total employees, which is around 60%. In the case of commissions, it recorded KRW18.1 billion, a 5.3% decline. Q-o-Q. In the case of advertising expenses, despite the Land of the Morning Light large scale update, it posted KRW8 billion, a 26% decrease Y-o-Y. However, we greatly decreased advertising expenses in the previous quarter, so on the whole, it increased KRW2.3 billion Q-o-Q.</div><div><br /></div><div>Lastly, I will cover Q3 major highlights.</div><div><br /></div><div>Black Desert in Q3 will also showcase diverse new content. The Black Desert Factor, which was held on July 1st was a paid event, but all tickets completely sold out in just 10 seconds and was greatly successful. The event showcased and promised diverse updates and improvement in user convenience and existing users greatly emphasized and was able to elicit interest from new users and returning users. Although there wasn't aggressive marketing, through natural user inflow, EAU increased 51% in Korea and 74% in North America/Europe, and (inaudible) increased 65% Q-o-Q.</div><div><br /></div><div>Recently, consistent interest is being maintained through additional user convenience improvements and user feedback improvements, and new season of 3to3 PvP Arena of Solare and update of Sea Palace as the summer event of Land of the Morning Light. Most of all, we are operating meeting the needs of users and working hard to improve new user retention.</div><div><br /></div><div>In addition, we are updating new zones and we have an update of large-scale PvP Faction War of the Roses and we are preparing for an Asia siege or event. War of the Roses is a massive battlefield that will pitch 300 players against 300, a total of 600 split into two factions and we're preparing a large scale war-style PvP which is different from the past. The Asia siege war event where yields with the best performance in each region, Korea, Taiwan, Hong Kong, Macau, Thailand, Southeast Asia and Japan, will gather and play together. And this is expected to give players the unique fun of playing Black Desert with Special features of global IP and being directly serviced to all regions.</div><div><br /></div><div>For Black Desert console, we recently updated Land of the Morning Light that we first showcased online. We are seeing that along with the PC platform users and revenues are growing. In the console platform, we are following the diverse updates that were showcased on PC including Megu class awakening and we are preparing to continue our solid performance.</div><div><br /></div><div>For Black Desert Mobile, we plan to increase the fun of game playing through large scale updates including new class Wizard and through season characters. In particular, the season system which was designed so previous efforts do not disappear and go wasted and differentiate it from other mobile games offers continuous fun and is expected to lead to great performance for the long run of our IPs.</div><div><br /></div><div>In addition, we plan to increase contact with global users in Q3 as well. Recently, Black Desert participated in TwitchCon which was held in France, and in August, we plan to hold the Heidel Ball for Black Desert Mobile users. EVE also is planning to offer diverse content and service. In particular in Q3, we plan to hold the Alliance Tournament which is a 10to10 PvP event. We are planning to hold Alliance Tournament as an event where the best members of each alliance engage in combat and others can cheer them on and users can solidly unite.</div><div><br /></div><div>Most of all, EVE celebrates its 20th anniversary this year and we are preparing for the biggest ever fan fest this year. The fan fest which will be held in September will not only be a festival for users that enjoy live service but also introduce diverse genre games which utilize EVE IP that we have been preparing and we have plans to share these plans at the festival as well.</div><div><br /></div><div>Black Desert franchise and EVE franchise performance has rebounded and EBIT admits the solid performance we are continuously preparing for new IPs, in particular with the recent growing importance of the console game market and by seeing the size of the market growing once again, we could confirm that we were not wrong to prepare for new IPs for the console market that we deeply thought about in the past.</div><div><br /></div><div>We are working hard to develop Crimson Desert with the goal of completing development within this year. After previously twice disclosing footage, we will showcase the more developed Crimson Desert at Gamescom, which will be held in August. We will do our best not to disappoint investors and game users who have been waiting a long time for Crimson Desert, which received high expectations from when it was first disclosed. In particular, in the AAA console market where competition is getting more heated, we will do our best not only for game Development, but also in service and marketing so that this will take root as new IP and become a title which will continue for the next 10 years or more of performance.</div><div><br /></div><div>For the IPs which were already disclosed including DokeV and PLAN 8, we will review the appropriate timing and methods to communicate according to the development situation of the game. While seeing the numerous players who are still enjoying playing Black Desert which has been in service for nearly 10 years and EVE Online, which has been in service for more than 20 years, we are once again recognizing the importance of IP and community. Through continuous investment for Black Desert and EVE IP, which are live, we will prepare for longer service of the two IPs on the one hand and also work hard so that our new IPs can live up to their high expectations. We will look forward to your interest and support. Thank you very much.</div><div><br /></div><div>With this, we will conclude the Pearl Abyss 2023 Q2 Earnings Release Presentation and start the Q&A session.</div><div><br /></div><div><br /></div><div><br /></div><div><b>Questions And Answers</b></div><div><br /></div><div>Operator</div><div>Now, Q&A session will begin.</div><div><br /></div><div>Question</div><div>Thank you very much for this opportunity. I have two detailed questions. I am Kim Jingu from Kiwoom Securities. First of all, I would like to know about what is your direction for the update of Black Desert when you think about user traffic and continuity? And can you also tell us about how you're going to have more engagement with your streamers or users and give us your direction to do so including other attempts? And can you give some color to Black Desert revenue or sales op site? Also, can you give us some of your thoughts on your confidence in your Crimson Desert in-game footage and the implications of engine advancements, and also I would like to know more about DokeV and in-game footage as well.</div><div><br /></div><div>Answer - Geong Man Kim</div><div>Thank you very much for your questions. I would like to answer them. And regarding the Q2 Black Desert sales, it is true that it was impacted by the launch of large-scale competitor titles and the seasonality. So there was some weakness.</div><div><br /></div><div>Regarding Black Desert in Q2, with the expansion of Land of the Morning Light, which was first showcased in Korea in Q1 to global in June of this year, we were able to have great interest from overseas media and users.</div><div><br /></div><div>In particular, we scored 81 in Metacritic which is an overseas review platform, which was the highest score among all Korean RPG games.</div><div><br /></div><div>However, since we launched this content in late Q2, we expect the updated effect to be reflected in Q3.</div><div><br /></div><div>In addition, with the Black Desert Festa, which was held in early July, the user event, we are seeing a very positive user trends not only in Korea but around the world.</div><div><br /></div><div>In addition, we have seen the DAU for July, which increased 65% compared to the previous month, and we have seen an increase of 151% for Korea and 74% for North America and Europe. And even now when we are in mid-August, we are seeing these positive user trends continue, and we are seeing it as a cornerstone for long run success.</div><div><br /></div><div>And regarding your question about streamers. We are seeing very famous streamers in Korea and also in North America and Europe who are voluntarily streaming Black Desert, and we are seeing many people are joining the stream. So we tend to have a great relationship and maintain a great relationship with them and to have a very positive relationship going forward.</div><div><br /></div><div>Black Desert is celebrating its 9th anniversary this year and it is being actually very positively reviewed once again in the market recently, and we are going to do our best for the best quality of service, so that all the increased new and returning users can enjoy the content in the way that they want in a variety of different ways.</div><div><br /></div><div>Answer - Jin-young Heo</div><div>Thank you very much for your question. And I would like to answer your question about Crimson Desert. First of all, I would like to express my deepest gratitude to everyone who is having high expectations for our new title and showing a great interest, and thank you also to our investors as well.</div><div><br /></div><div>Crimson Desert is targeting the global AAA console market. For the past year or so, we have had countless tests with our external partners and we have received great reviews regarding the high expectations that best fit a AAA game and diverse are very positive reviews for our games.</div><div><br /></div><div>In particular, we have been closely listening to the feedback of our partners who are experts in the console market and we have been perfecting our game and listening to their feedback very closely. So we expect to have great performance.</div><div><br /></div><div>It has been some time since we first disclosed Crimson Desert but for this long time we have been working very hard so that the quality of the game has developed by leaps and bounds.</div><div><br /></div><div>In particular, at Gamescom this year, we plan to disclose new footage of the games that will actually showcase the real gameplay of Crimson Desert.</div><div><br /></div><div>We will show you how Crimson Desert is being developed and perfected and show you the level of quality that we are aiming for.</div><div><br /></div><div>Regarding the details of our footage. We would like to kindly ask you to actually wait until Gamescom and see our footage, and I'm sure that you can find out.</div><div><br /></div><div>For DokeV, I believe that we had given you information that through black-based engine. We have been shared the resources and assets that are being used for Crimson Desert and it is being developed greatly as well.</div><div><br /></div><div>Since we are using the black-based engine, we are improving the development efficiency, so we believe that after Crimson Desert, it will take a relatively short amount of time for us to actually finish the development of DokeV.</div><div><br /></div><div>Since we are smoothly developing the game so far, after we disclosed the Crimson Desert footage, we will be able to actually think about how we can give you more information about our development status and the high quality of our game going forward.</div><div><br /></div><div><br /></div><div>Question</div><div>Thank you very much for this opportunity. And actually looking at the game industry, it seems that there are some times when game development is being delayed or there needs to be more time for late minute polishing-- last-minute polishing. And we have been waiting a long time for Crimson Desert. And I know that you have said that you are pushing for late within this year to complete the Game. But as stock investors, I believe that maybe to invest conservatively, if there is a possibility that this can be delayed, do you think there is that type of possibility that investors should keep in mind?</div><div><br /></div><div>Second question is regarding exclusive contract with Sony or Xbox or other platforms that is being mentioned in the media. So can you give us some color on the future direction of whether you're going to maybe engage in some exclusive offers with certain platforms and have first publishing on them or first contracts with them, or are you going to push for all the game platforms actually launching your game at the same time? Thank you.</div><div><br /></div><div>Answer - Jin-young Heo</div><div>Well, first of all, I would like to truly thank everyone for waiting for such a long time for Crimson Desert so far. Thank you very much for your patience.</div><div><br /></div><div>I know that time has been passing, and we have seen the development of technology and we have seen many of the titles that have been launched, so I know that user expectations has been heightening. But I can tell you that Crimson Desert is following the heightened expectations of those users.</div><div><br /></div><div>So I believe to meet the heightened expectations of everyone, we are spending a little more time in order to perfect the game. And for Crimson Desert, we have been working very hard with the target of completing development by the second half of this year.</div><div><br /></div><div>Our development of the game is very smooth and we are going to do our best so that we can perfect the development of the game as is targeted and do our best so that it can be launched as soon as possible.</div><div><br /></div><div>And regarding partnerships, well, we have been talking to many partners, but we haven't had any conclusive talks or discussions that have been in conclusion yet.</div><div><br /></div><div>We will consider Pearl Abyss profits and our interest for the utmost priority, so that we can make the best decisions that can lead to the best performance in the market.</div><div><br /></div><div>What I can tell you is that for Crimson Desert, we want the most global users to enjoy our game. So we're going to do our best so that our goal will be to provide our games to everyone through as many platforms as possible.</div><div><br /></div><div><br /></div><div>Question</div><div>Thank you for the opportunity. I think others have asked a similar question, so I only have one question to ask you. And for Black Desert Online, we have seen a very encouraging trend after the update with traffic. And I would like to ask you about, what are your forecast for sales revenues going forward for Q3 or even Q4 for Black Desert Online?</div><div><br /></div><div>Answer - Geong Man Kim</div><div>Well, thank you for your question about Black Desert sales, and it seems that for the different trends they are a little bit different for different regions and for different services, but we are seeing that the rise in the revenues or sales is actually following our rise in the numbers of users.</div><div><br /></div><div>And our Black Desert team will do our best so that these positive trends can be continued going forward.</div><div><br /></div><div><br /></div><div>Question</div><div>Thank you very much for this opportunity. My questions might overlap with other questions, because I came a little bit late to the con call, so please excuse me if they are overlapping questions. My first question is about your current development status of DokeV. And can you tell us a bit more about the DokeV development situation and what is happening with the team? We are hearing some noise in the market about DokeV and I am curious about why there is some noise in the market, and I would appreciate your comments.</div><div><br /></div><div>And for our investors, well, can you give us what should be their level of expectations for DokeV, and if you can compare it to the expectations that they can have for Crimson Desert, it will be greatly appreciated. And after the (inaudible) update, while we are seeing that there has been great maintenance of traffic and can you tell us about any other updates for the second half that you are expecting? Thank you very much.</div><div><br /></div><div>Answer - Jin-young Heo</div><div>Well, thank you for your question about DokeV and I think what you are mentioning stems from the fact that there are high expectations for DokeV and we are actually focusing a lot of our manpower and our efforts into the completion of Crimson Desert. So I think that is a part of the reason behind what you have just mentioned.</div><div><br /></div><div>Well, we also have shown you some footage of Crimson Desert and DokeV and we do know that there is great interest in DokeV from everyone and we are also in line with your high expectations.</div><div><br /></div><div>And we believe that this high interest also is from the fact that this is a unique genre, so it stems from the characteristic of the genre as well. And we promise you that we will do our best to complete Crimson Desert as soon as possible and to have more focus into developing of DokeV with our core manpower after that so that we can do our best to meet the high expectations of the market.</div><div><br /></div><div>Answer - Geong Man Kim</div><div>And you asked a question about Black Desert. And even after the update of Land of the Morning Light, we are maintaining our traffic very well.</div><div><br /></div><div>And like we have been doing for the last nine years, we are planning to have diverse update of content for the second half of this year, so that our interest and our success can be continued.</div><div><br /></div><div><br /></div><div>Question</div><div>Thank you very much for this opportunity. And first question is about when you're going to have the update of Land of the Morning Light for Black Desert Mobile. And can you tell us about what are the expectations you have internally for Crimson Desert. For example, are you targeting it to be a global action RPG game level that is very popular? Can you give us some color on that? Thank you very much.</div><div><br /></div><div>Answer - Geong Man Kim</div><div>Well, regarding your question about the update of Land of the Morning Light for Black Desert Mobile, what we normally do is we prepare for the content and then we see our internal scheduling and we disclose it to users and have the updates. So we are going to do our best so that we can follow this process and to let the market know as soon as this is decided.</div><div><br /></div><div>Answer - Jin-young Heo</div><div>Well, regarding your question about expected results for Crimson Desert, well, as mentioned several times, we are targeting it to be a global AAA console game. And we have shown our game countless times to our partners and have received great acclaim and they said they have high expectations as well. So internally, we also have very high expectations for Crimson Desert as well.</div><div><br /></div><div>However, we know that in order to turn these high expectations into great performance, we must have a great degree of perfection to meet the very strict preferences of our users and to have a great playing environment that is optimal for users to play, so we are well aware that we need to meet these requirements.</div><div><br /></div><div>And we promise you that we will do our best not only for the quality of the game, but to also polish the game to perfection, so that we can have a great developed game so that it can lead to great performance at the end of the day.</div><div><br /></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-43853086638194575652023-08-12T00:35:00.004+01:002023-08-12T00:35:59.026+01:00Nice deal - 25 free Plex / 10 days Omega for 10 Plex<div style="text-align: left;"><span style="font-family: verdana;"><b>Its a small deal on the New Eden Store but not to be missed</b></span><br /></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Firstly to note, this is available to Alpha and Omega accounts.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">CCP are giving all accounts that claim it 25 free Plex and also all accounts can buy 10 days of Omega for 10 Plex.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">So, this is self financing: CCP are effectively giving everyone 10 days of Omega and 15 Plex.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>Basically CCP are giving ISK for free here</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">25 plex at 4.7m = 118m isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">But, that is small fry. It is the conversion to Omega that makes this deal work spectacularly.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">One month Omega = 500 Plex at 4.7m = 2.4bn isk. So 10 days for free is equivalent to 780m isk. Add in the remaining 15 Plex (=70m isk) then CCP is giving the equivalent of 780+70 = 850m isk to every account.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>So, what did i do?</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">For my Omega accounts i took the 25 free plex and spent 10 Plex buying the 10 Omega Days. So, leaves 15 Plex with each of the Omega accounts.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">So my Omega accounts have made 850 x 4 = 3.4bn isk for free.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">For the Alpha accounts i took the 25 free plex only = 118 x 3 = 350m isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-23818938657737318402023-08-02T19:28:00.005+01:002023-08-02T19:29:09.955+01:00The Oz Tank Show<div><span style="font-family: verdana;"><b>The Oz Tank Show</b></span></div><span style="font-family: verdana;"><div><span style="font-family: verdana;"><br /></span></div>Oz, the host of <a href="https://www.twitch.tv/oz_eve/videos" target="_blank">Oz Show / Oz Report in Twitch</a> / <a href="https://www.youtube.com/c/OZeve/videos" target="_blank">youtube</a> has launched a new show called The Oz Tank on the same platforms.</span><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The idea is that other Eve players who want to raise some isk for a project can come and pitch their idea on the show. 20 minutes per pitch which is a 10 minute presentation and 10 minute questions from the investors.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">There is no requirement for these projects to make a return. They can or they can not. All part of the pitch.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Oz and the other Investors (so Eve trillionaires) will then decide if they want to contribute and how much.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The first show was last Saturday (29 July 2023) where the ideas pitched were to host an Eve music contest, run a Bounty system, start a newbie wormhole corporation, run fleets to destroy leftover towers and put down a new trading station in Perimeter.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The <a href="https://www.youtube.com/watch?v=5ZQ05E0rDpQ" target="_blank">youtube of the first Oz Tank show</a> is just over 2 hours long but a good watch,</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Went very well, i thought.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In all, 115bn isk was marked down to be provided across those 5 projects.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>What does this mean for me?</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I am now worth 1.2 trillion isk and it would take me about 1 year to get to 2 trillion, likely less. But that is very boring.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Therefore, i have decided to give the lower of what i make in a month after all costs or 50bn isk or what is asked for each month to the show.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">On Saturday i agreed to finance 42.5bn isk worth.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">To put that in context, in July, a normally slow month, i made 54bn isk of which i have now marked 42.5bn to go to these projects.</span></div><div><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-65636973960423140062023-07-06T00:53:00.001+01:002023-07-06T00:53:51.950+01:00Music in Eve<div style="text-align: left;"><span style="font-family: verdana;">Short post but have to say it.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I don't know about you but the Eve music i find incredibly relaxing. Can easily listen to it whilst working.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Almost 7 hours can be found on <a href="https://soundcloud.com/ccpgames/sets/eve-online-in-game-tracks" target="_blank">SoundCloud from CCP</a></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Easily my favourites are <a href="https://soundcloud.com/ccpgames/eve-online-below-the-asteroids?in=ccpgames/sets/eve-online-in-game-tracks" target="_blank">Below the Asteroids</a>, <a href="https://soundcloud.com/ccpgames/eve-online-miner-stories?in=ccpgames/sets/eve-online-in-game-tracks" target="_blank">Miners Stories</a> and <a href="https://soundcloud.com/ccpgames/eve-online-nouvelle-rouvenor?in=ccpgames/sets/eve-online-in-game-tracks" target="_blank">N</a></span><span style="font-family: verdana;"><a href="https://soundcloud.com/ccpgames/eve-online-nouvelle-rouvenor?in=ccpgames/sets/eve-online-in-game-tracks" target="_blank">ouvelle Rouvenor Hero</a>. </span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">And i think the music and the space station sounds add a lot to the game.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I keep a link to CCP on Soundcloud in the links to the right.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">. . . . . no isk to be made here but something to listen to as the isk flows in.</span></div><div style="text-align: left;"><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-6313933455240579462023-07-02T13:29:00.000+01:002023-07-02T13:29:27.131+01:00Month end update - June 2023<p><span style="font-family: verdana;">As at the end of June 2023 my wealth is <b>1.12 trillion</b></span><span style="font-family: verdana;"> ISK</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">after paying 6.7</span><span style="font-family: verdana;">bn to upgrade to Omega for another 30 days for four accounts. My Wealth increased by <b>56</b></span><span style="font-family: verdana;"><b>bn</b></span><span style="font-family: verdana;"> in June.</span></p><div><span style="font-family: verdana;">Technically, <b>my wealth is 1.400 trillion ISK </b>but i always take a 20% provision against Sell Orders to be conservative. Hence i quote <b>1.12 trillion</b>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">A slower month in June. I did spend 12bn on bits and bobs discussed below - so excluding all that i would have increased my wealth by 67bn. But, times are a changing and the pure pursuit of watching numbers go up is important, but less so.</span></div><div><br /></div><div><br /></div><div><span style="font-family: verdana;"><b>The Next Chapter</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">OK, in the last 12 months my wealth rose by 711bn. That would suggest around 15-18 months to generate the next 1 trillion isk But life is too short, there needs to be other aims in life.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">1 tr</span><span style="font-family: verdana;">illion was always the aim. The question i am asking myself is what to do now?</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">One dream is to increase my wealth by more than 100bn in a month. I think that can be done this winter but is a big push for the summer months.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Now, family life is busy. 2 children who don't make time for the finer points of being an Eve Trillionaire. A wife who just confiscated my entire hoard of Coke Zeros because they potentially contain some harmful substance.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So, what can i do:</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I want to major in manufacturing - if i can find some cookie cutter way here, that would be ideal.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I want to see if i can get invention to work - but i hate the Contract Market System.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">And if i can find some other ISK making venture that does not take too much time that would be great.</span></div><div><br /></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Oz Tank</span></b></div><div><b><span style="font-family: verdana;"><br /></span></b></div><div><span style="font-family: verdana;">Enter Oz Eve. Active on <a href="https://www.twitch.tv/oz_eve" target="_blank">twitch</a>, <a href="https://discord.gg/FZccntUScP" target="_blank">discord</a>, <a href="https://www.youtube.com/ozeve" target="_blank">youtube</a>, <a href="https://podcasts.apple.com/us/podcast/eve-online-the-oz-report/id1532135413" target="_blank">apple podcasts</a> you name it. And <a href="https://twitter.com/OZ_in_EVE" target="_blank">tweets</a>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Now, i have been following Oz since the dawn of time and is one of my go to Eve Market information sources.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Oz already does a weekly twitch show talking Eve Markets <b>but is planning to expand into hosting show that gives ISK to content providers / other Eve businesses.</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">A post is coming on this next. But i can see my monthly profits going here.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">Quick Summary of June</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">A slower month vs May but still a better month than i expected. In the top 5 and the best in a summer month.</span></div><div><br /></div><div><span style="font-family: verdana;">Sales down 8% to 382bn.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Profits down 2%. So the item margin rose to 28% (profit on sale before all taxes and costs divided by sales). So, nicely ahead of the 25% target i set myself.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">No records in any regions except for Sobaseki, more in that debacle next - the whole war dec'g on structures in High Sec.</span></div><div><br /></div><div><span style="font-family: verdana;">In the last 12 months i have made sales of 4.2 trillion isk and profits (after everything including Plex) of 711bn isk having spent 82bn on Plex.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>I need to adjust my aims</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b style="font-family: verdana;"><span style="color: red;">The orginal overall aim of what i do is to increase my wealth by at least 10bn per month</span></b><span style="font-family: verdana;">. And this had been the aim in prior periods when i used to play Eve.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">But i have now achieved this </span><span style="font-family: verdana;">in 27 / 34 months - and i am pretty confident that this is achievable going forwards.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So, lets drop this target. It was great at first but now blends into the general environment and is expected.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">My next dream was to make 1bn profits after everything a day. I have now achieved that for the last 12 months. Can i call this a foregone conclusion? Perhaps so. But lets keep this as the base line from here.</span></div><div><br /></div><div><span style="font-family: verdana;"><div><span style="font-family: verdana;">For the last 8 months, my daily profits have been around 2.8 billion isk generated by daily sales of over 10bn. From this i need to take the Plex off. So, post Plex, it has been 2.2bn though in June was 1.8bn (see below for the one-offs).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><b>High Sec Structures coming down</b></div><div><br /></div><div>During June CCP changed the rules and no longer can Extra Large Structures be anchored in High Sec. This had the knock on effect of such structures being war dec'd - <a href="https://marketsforisk.blogspot.com/2023/06/the-cost-of-moving-trading-locations.html" target="_blank">i wrote about this effect from high sec structures coming down</a>.</div><div><br /></div><div>For me, i was in two iChooseYou stations and i chose to move to an NPC station in the same system to be on the safe side.</div><div><br /></div><div>The whole cost of Asset Safety (0.5%) + Relisting my Sell Orders (1.5%) and the difference between the value of the relisted Sell Orders vs the old value came to 5.6bn isk.</div><div><br /></div><div><br /></div><div><span style="font-family: verdana;"><b>Omega + MCT</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">During June there was a fantastic deal on a combined bundle of <a href="https://marketsforisk.blogspot.com/2023/06/the-omega-mct-deal-on-new-eden-store.html" target="_blank">Omega plus Multiple Character Training for Plex in the ingame store which i posted on</a>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The summary of it all is that i was coming to the point where i needed to buy 3 more months of Omega across my 4 Omega accounts and by spending 28bn isk i did just that for 25bn isk and for only 3bn more isk i got 3 months multiple character training across all my Omega characters. A 90% discount to normal prices.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Therefore, i am now in the skill farming market and there is a good chance that over the next 3 months i can easily cover the entire 28bn cost of this 3 month Omega and more.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Other One Offs</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In June i spent 900m on a Large Skills injector to create for Sell Order capacity in one character and 5.2bn isk to buy +5 implants to speed up my skill point training (see above).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">But, add the cost of moving out of iChooseYou stations and these implants all cost me around 12bn isk in June.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Plex sale</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Right at the start of June there was an ingame offer that <a href="https://marketsforisk.blogspot.com/2023/06/i-sold-all-my-plex-will-buy-back-later.html" target="_blank">discounted the number of Plex required to buy Extractors - i wrote about this</a>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">As is always the case, the price of Plex goes up as players buy Plex to take up the offer and i sold all my Plex (4500) at 5.6m isk each vs the holding cost of 4.4m.</span></div><div><br /></div><div><span style="font-family: verdana;"><br /></span></div><div><b>Activity</b></div></span></div><div><div><span style="font-family: verdana;"><div style="font-family: "Times New Roman";"><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I continue to come on once a day to update Sell orders and replace items sold. About 30-45 minutes. Getting closer to 45 minutes these days.</span></div><div><span style="font-family: verdana;"><br /></span></div><div>There are some week days where i don't log in at all if sales are low (summer can be slow) and/or real life time is tight.</div><div><br /></div></span></div><div><br /></div><div><span style="font-family: verdana;"><b>Target daily sales required to achieve 1bn profits per day</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In summary, i generally need to make 7.5bn sales per day assuming my item margin is 25%</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">As the cost of plex rises then my daily sales requirement also rises.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">On the current taxation levels to make 30bn ISK per month i would need to cover:</span></div><div><span style="font-family: verdana;"> - Plex costs of 3 x 500 x 4.7m = 7.1bn</span></div><div><span style="font-family: verdana;"> - Courier costs 2% of sales (i.e. = purchase cost + collateral)</span></div><div><span style="font-family: verdana;"> - Broker Listing fees 1.5% of sales</span></div><div><span style="font-family: verdana;"> - Broker re-listing fees 0.3% of sales (lets assume all sales changed at least five times per month)</span></div><div><span style="font-family: verdana;"> - Transaction Taxes 3.6% of sales</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That all works out at 225bn monthly sales will generate profits after all costs including Plex of 30bn isk. = 7.5bn daily sales.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Bottom line is that assuming i make my 25% profit margins then each 1bn of sales creates profits of 164m and these go towards buying Plex for the Omega accounts and whatever is left is reinvested in the business.</span></div><div><br /></div><div><br /></div><div><span style="font-family: verdana;">Looking at some sensitivity analysis</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">- if my item margins were 28% instead of 25% then i need only make 192bn isk of sales (or 6.4bn per day)</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">- if Plex rose from 4.7m to 5.0m then then i need to make 228bn isk of sales (or 7.6bn per day)</span></div><div><br /></div><div><br /></div><div><br /></div></div><div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><b>Review of the June </b></span></span><b style="font-family: verdana;">aims</b></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div></div><div style="color: #222222;"><span style="font-family: verdana;">Overall, the aim was to keep sales from falling 20%.</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">1) Plex the four omega accounts - aim number one all the time</span></span><span style="color: red; font-family: verdana;"> - achieved</span></div><div style="color: #222222;"><br /></div><div><span style="font-family: verdana;"><span style="color: #222222;">2) Hold sales in Dodixie to down 20%</span><span style="color: red;"> - missed, sales down 44%</span></span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">3) Hold sales in Amarr</span></span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 8%</span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span style="font-family: verdana;">4) Hold sales in Rens</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, down 13%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">5) </span><span style="font-family: verdana;">Hold sales in Hek</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 42%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">6) Hold sales in Sobaseki</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 61%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">7) Hold sales in Tush-Murkon Prime</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- missed, sales down 42%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">8) Ramp up Arnon and Alentene</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">9) Hold the investment and profits in Manufacturing</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- missed</span></div></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><br /></div><div><span style="font-family: verdana;">On balance, a positive month against expectations.</span></div><div><br /></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><b>Reminder of my Current Business.</b></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">For now 99% of what i do is inter-regional trading - buying from Sell Orders in Jita to sell elsewhere. The rest is made up from Manufacturing and some Station Trading in Jita.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;">For Trading i focus on slow moving but high margin items. That keeps me away from fierce competition and i only need to sell an item once every 10 days to make good income. In other words, i don't really care if an item sells once every 10 or 20 days, if have many hundreds of items for sales across Eve and so each days a few items will sell and that generates all my income.</span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;">To put this in perspective. I had Sell Orders of 1156bn up at the start of June which generated sales of 382bn. In other words, i sold between 1% to 2% of everything i had for sale every day. That is slow and i like it. Not for me the cut and thrust of high volume low margin world. Slow and easy for me. Tortoise and hare stuff.</span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="color: #222222; font-family: verdana;">For this side of my business, lets call it Merchanting or inter-regional trading, i want to generate at least 1bn profits per day after all Plex costs (i used to target 10bn profits per month but that is an old target easily achieved to dropped).</span></div><div style="color: black; font-family: "Times New Roman";"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="color: black; font-family: "Times New Roman";"><span style="color: #222222; font-family: verdana;">My business model evolves over time. As my wealth increases i focus on higher value items. Therefore, i try also to stick to the rule of making a minimum of 100m profit per item sold. </span><span style="color: #222222; font-family: verdana;">i.e. if i buy an item for 70m then i aim to sell it for at least 170m isk. This makes sure i don't waste my time on making low absolute profits and so preserves the 45 minute rule.</span></div></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">My main business is operated with four omega accounts (paid for with plex) with twelve alts.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">The main Trading alts (all Omega) sit in Dodixie, Amarr, Rens and Hek. I have also omega alts in the new Trading locations of Sobaseki (in Lonetrek), Tash-Murkon Prime (in Tash-Murkon), Arnon (in Essence) and Alentene (in Verge Vendor).</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;">The other Omega four alts sit in Jita and buy from Sell Orders, has these items couriered to the alts in Dodixie / Amarr and Rens / Hek and Sobaseki / Tash-Murkon Pime and Arnon / Alentene who then put them onto these markets for sale.</span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;">The Jita alts also serve to sell items that i can no longer sell in my trading locations Sort of clearance sales.</span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;">I also started in December 2021 to place alpha alts in other regions to see how it goes. I just need two of them to demonstrate that they can combine to justify an Omega account. Also, they need to take up very little of my time. So far the Sobesaki / Tash-Murkon alts and Arnon / Alentene made the grade and were upgraded in two accounts.</span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">The other regions so far are: Placid; Citadel and Khanid. And i am in an NPC station in Delve and Outer Ring. </span><span style="color: #222222; font-family: verdana;">I have started in Venal.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I am struggling to make the Low Sec locations work.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>What do i sell?</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><div>I sell blueprints, skill books, implants and ship equipment.</div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I am trialling selling structures like jump gates, stations, station modules and other infrastructure items. This is doing better than i expected.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>What was selling in June?</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Implants, structures and ship equipment did well. Blueprints struggled.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">There is a Blueprint competitor in Dodixie and Amarr who i am fighting. They seem to be on 24/7.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Implants are still doing well and tend to be the most competitive - i am slowly expanding into more types and moving up the ISK value curve. And rolling them out to all my Trade Hubs. </span><span style="color: #222222; font-family: verdana;">They don't sell quickly but when they do i tend to get a whole family sold at a time (alpha, beta, delta, epsilon, gamma, omega). Again, that's how i like it. A 1-5 billion or so of investment can take 30 days to sell.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><div><br /></div><div>Ship equipment is a staple revenue stream for me, better in June. Especially Vorton items. and Deadspace items.</div><div><br /></div><div>Mining equipment is making a comeback of sorts but is competitive.</div><div><br /></div><div>Skill books are now my lowest income generator - very few sales now. Barely happening at all.</div><div><br /></div><div><br /></div></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Jita</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Traditionally i never sold anything in Jita unless it was being transported back from one of my trading hubs because i could not sell it and so to be sold at Jita prices to get some isk back.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">For a while over winter i did very good Blueprint sales but the main competitor returned in February and forced me out of the market.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I also do station trading in Jita (that is - put Buy Orders up in Jita and then when those Buy Orders are executed i then put the item up for Sale in Jita at a higher price). I stick to the slow moving items again. That said, i don't actually know how much this earns me but i know it is getting better. The margins are huge. I am buying items for 500m and selling them for 1bn.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Also, in JIta, i manufacture items and sell them in the Jita market.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><b style="color: #222222; font-family: verdana;">Manufacturing</b></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">I am now eleven months into my Manufacturing project. It remains slow and i need to up my game (i know, i said that before).</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">In June i made 3bn of sales generating an item profit of 0.7bn and so after taxes a profit of 0.5bn.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">Barely happening.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Other High Sec Trading Locations</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I don't want to spend all my time on Eve doing Regional Trading (buying from one region, mainly Jita, to sell to another) but i do want to see if i can find really low competition but stable revenue streams of trading.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">The current alpha account regions so far are: Placid; Citadel and Khanid. And i am in an NPC station in Delve, Outer Ring and now Venal.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">My alts in Arnon and Alentene were upgraded to Omega during January.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">In these alpha accounts i am winding them down. I don't want to convert anymore to Omega.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">In June the Sell Orders in Placid expired and i will transport the unsold items back to Jita.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Delve</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I want to experiment with selling in null/low Sec. Hence, i have found an NPC station in Delve and started experimenting with items to sell.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">It is not going well - sometimes threatens to improve but then fall back again.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">As with my other alpha accounts i am letting it wither away on the vine.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I am rethinking how to make low/null sec work.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Plex</b></span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">I am aim to store up to 6 months of Omega for each of the Omega accounts which would mean buying 12000 Plex (= 6 x 4 x 500).</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">That said, CCP are changing their attitude to Omega prices and there is a permanent sale on that gives a discount to the Plex required for longer periods of Omega purchases.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">Given my sale at the start of June i currently hold none. When the price falls back to around 4.6m i will start to rebuild stocks.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><div><span style="font-family: verdana;"><b>A minor accounting point (again)</b></span></div><div><span style="font-family: verdana;"><b><br /></b></span></div><div><span style="font-family: verdana;">Similar to back in September 2022, i have to think how i account for buying three months of Omega for each Omega account (4 accounts). I repeated this in December and again in February and now again in June.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Right now, i have spent 28bn isk to Omega my accounts to October / November.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Lets make it easy and assume all 4 Accounts are Omega'd for 3 months (July, August, September).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The way i account for this is to hold the entire amount as wealth and reduce this "asset" by a month at a time.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The alternative accounting treatment would be to call the 28bn spent as a cost in June and then have no Omega costs in July to September.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">It all adds up to the same number just the timing of recognising the cost is different.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">So, for each of the next 3 months i will recognise a cost of 9.3bn isk as Plex/Omega cost. (actually, this is part Omega cost and part the Multiple Character Training costs discussed above).</span></div><div><br /></div><div><br /></div></div><div style="background-color: white;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><b>Analysis of Trading Profits</b></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><b><br /></b></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">In total i made 382bn ISK of sales in June which made me item profits of 109bn ISK.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">(item profit is the simply difference between sales done vs costs spent buying products, so before fees and taxes. Because i don't yet invest in items other than Plex i don't make any allowance for items still in stock - in part because i don't track the cost per item spent).</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Overall, sales fell by 8% in June mainly due to Dodixie sales coming off 44% from a very strong May.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Amarr this time was the best selling trade hub with 99bn sales (normally it is Dodixie), followed by Dodixie 81bn, jita (station trading doing better), Rens 42bn and Hek 39bn.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Sobaseki at 37bn almost caught up with Hek - unlikely to repeat in June i feel.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Sobaseki + Tash murkon did 54bn whilst Arnon + Alentene did 23bn.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">The item profits of 109bn was an item margin of 28.4% (109/384) vs my target of 25%. 28% us within the normal range, so happy here.</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">From this I then need to take a whole series of costs off before i get to my Business profits (and notice how they are more related to Sales rather than costs):</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;"><b><span style="color: red;">Courier Fees</span></b><span style="color: #222222;">: i aim to pay 2% of sales value to the Courier = 8.1bn</span></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span><b><span style="color: red;">Sales tax</span></b><span style="color: #222222;"> cost me 10.5bn ISk (=2.73% of sales) - </span></span></span><span style="font-family: verdana;"><span><span style="color: #222222;">the Dodixie, Amarr, Rens, Hek Sobaseki, Tash-Murkon, Arnon and Alentene and Jita characters are leve</span></span></span><span style="font-family: verdana;"><span style="color: #222222;">l 5 in</span><span style="color: #222222;"> </span><a href="https://wiki.eveuniversity.org/Skills:Trade#Accounting" target="_blank">Accounting</a> (=sales tax of 3.6%); and of course all the alpha alt accounts are only Level 1 (=sales tax of 8%). Not sure why the tax rate is below the base.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;"><b><span style="color: red;">Broker Fees</span></b><span style="color: #222222;"> costs me 17.2bn (=4.5% of sales, Dodixie is more competitive so i was changing prices more and i had to relist all Sell Orders in Sobaseki and Alentene as discussed above). Now, i can break this down into the initial listing fee of 1.5% (because i am Level 5 </span><a href="https://wiki.eveuniversity.org/Skills:Trade#Broker_Relations" style="color: #222222;" target="_blank">Broker Relations</a><span style="color: #222222;"> on all Omega characters and lets to make the sums easier and include all the alpha alts) and therefore the rest is the cost of changing the price which is 0.30% a shot (i may have that 0.30</span></span><span style="color: #222222; font-family: verdana;">% completely wrong!).</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">So, Listing Fee = 1.5% x 384= 5.7bn and so the Relisting Fee = 17.2-5.7 = 11.5bn which is 2.2% of sales. That shows that i do change prices quite often, bias to Amarr, Jita and now Dodixie. Someone is taking me on in Dodixie. Will need to be crushed.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Manufacturing Job Cost fees were 1.0bn (i produced alot but sold little).</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">This takes my 'Business Profits' to 74b</span><span style="font-family: verdana;">n ISK for June vs 77bn in May. This is what 30-40 minutes a day in June gave me.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">A number of my Couriers got ganked and so the surplus collateral that flows to me added 2.1bn to profits.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">And then i had a number of one off costs of 11.7bn isk discussed above.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">So, the post-tax margin is 19.4% (74/384) and so i achieved the 15% target.</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">The omega charge was then 6.7bn for June.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">That, therefore, is the road map from 384bn sales to 56bn increase in wealth.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><div><br /></div><div><br /></div><div><br /></div><div><b>Courier Contracts</b></div></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Each night, i get home from work and determine what i need to sell in all the locations.</span></div><div><span style="font-family: verdana;"><br /></span></div><div>The time is taken changing prices were necessary (especially Amarr given it is competitive and increasingly Dodixie) and then figuring out what to sell with the ISK made from the prior 24 hours sales.</div><div><br /></div><div>I have a list of items that feature regularly and i add to this list as time goes by. So is a case of checking Jita prices vs current location prices.</div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The Rens, Hek, Sobaseki, Tash Murkon, Arnon and Alenetene markets take less than 2 minutes each to check.</span></div><div><br /></div><div><span style="font-family: verdana;"><div><span style="font-family: verdana;">To look up prices in Eve I am using </span><a href="https://evetycoon.com/market" target="_blank">Eve Tycoon</a><span style="font-family: verdana;"> which seems to have more of the latest items in its market browser. I used to use </span><a href="https://evemarketer.com/" target="_blank">evemarketer</a><span style="font-family: verdana;"> but i just got used to </span><a href="https://evetycoon.com/market" target="_blank">Eve Tycoon</a>.</div><div><br /></div></span></div><div></div><div>Each night i courier about 10 to 50bn ISK of items from Jita. Used to be 2-10bn but things are better these days and i have more items up for sale. The total cargo volume is 10-250m3 per shipment though more recently often over 10,000m3. So small but valuable items. But this allows the couriers to use small, fast ships with much less chance of being ganked. So there is always someone willing to pick up the contract quickly.</div><div><span style="font-family: verdana;"><br /></span></div><div>I pay a generous 1.5 to 2.0% of collateral as fees. I am more interested in getting my items onto the market quickly than penny pinching on distribution costs.</div><div><br /></div><div><br /></div><div><br /></div></span></div><div style="background-color: white;"><div style="color: #222222;"><b><span style="font-family: verdana;">Outlook<br /></span></b><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">July will have the same ten conservative aims - summer can be slow. </span></span><span style="font-family: verdana;">Hence, the aims will be:</span></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">1) Plex the four omega accounts - aim number one all the time</span></span></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><span style="font-family: verdana;">2) Hold sales in Dodixie to down 20%</span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">3) Hold sales in Amarr</span></span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span style="font-family: verdana;">4) Hold sales in Rens</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">5) </span><span style="font-family: verdana;">Hold sales in Hek</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">6) Hold sales in Sobaseki</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">7) Hold sales in Tush-Murkon Prime</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">8) Ramp up Arnon and Alentene</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">9) Hold the investment and profits in Manufacturing</span></div><div style="color: #222222;"><span style="font-family: verdana;"> </span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div><span style="color: #222222; font-family: verdana;">The daily sales in June averaged 12.3bn.</span></div><div><br /></div><div><span style="font-family: verdana;"><span style="color: #222222;">Current wealth is </span><span style="color: red;"><b>1.12 trillion </b></span></span><span style="color: #222222; font-family: verdana;">ISK made up from:</span></div><div style="color: #222222;"><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Plex held as an investment 0bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for sale 26bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for use in business 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Omega brought forward 33bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Buy orders on the market 64bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">items for sale 1210bn ISK</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">less a 20% provision 242bn ISK*</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">ISK in wallet 24bn ISK</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">When i add up my wealth, I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc. The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK or are used to generate isk that can be readily resold back onto the market. Any ships or skills or fittings etc i buy are counted as expenses in that month. The only exception to this rule is Blueprint Originals i use for manufacturing. They are held at cost.</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span><span style="font-family: verdana; font-size: x-small;">* I take a 20% provision against the items I am selling. Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK). For me, I want my wealth to be calculated at cost. I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold. Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold. In an ideal world I would value my sell orders at the value which I bought the items for.</span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-80433412795940985722023-06-27T04:01:00.000+01:002023-06-27T04:01:17.375+01:00The Omega + MCT deal on the New Eden Store = brilliant offer<span style="font-family: verdana;">Right off the bat, this offer has either come to an end or been withdrawn by CCP.</span><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><a href="https://www.youtube.com/watch?v=6Os5RC3euCA" target="_blank">Strange Net goes through it all</a> and below is my writeup of the maths and me going for it.<br /></span><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">What was on offer?</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">On the ingame store, the <a href="https://support.eveonline.com/hc/en-us/articles/203523702-New-Eden-Store" target="_blank">New Eden Store</a>, CCP was offering Omega deals + Multiple Character Training (3 characters) bundle.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">This was a brilliant deal</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The table below shows what was on offer:</span></div><div><span style="font-family: verdana;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjNdjiHyFaxmI12JyXwcCfbVKgwmeRRGtVPZLN1XgZc3flFz-Hx87mwUGZuZy6K9wtW0Xy-RUqgJmKutYlGiBWP98yO9aah04KYqYebGsxDRGIJKtAkOlMY2TRlqIc2Ti7ViWA3NpLenLjIJ0Iz5UWbU8PPcvMy55sIwuU5zYk63_QGU95muKVA6-eSjQBG" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="221" data-original-width="483" height="241" src="https://blogger.googleusercontent.com/img/a/AVvXsEjNdjiHyFaxmI12JyXwcCfbVKgwmeRRGtVPZLN1XgZc3flFz-Hx87mwUGZuZy6K9wtW0Xy-RUqgJmKutYlGiBWP98yO9aah04KYqYebGsxDRGIJKtAkOlMY2TRlqIc2Ti7ViWA3NpLenLjIJ0Iz5UWbU8PPcvMy55sIwuU5zYk63_QGU95muKVA6-eSjQBG=w528-h241" width="528" /></a></div><br /></div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">To explain the table, take the first row:</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">CCP was offering 1 month Omega + 2 <a href="https://everef.net/type/34133" target="_blank">Multiple Character Training certificates</a> for 600 Plex.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The normal cost of 1 month Omega, shown in the table in the next section, is 500 Plex.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In other words, it would cost 100 Plex for 2 </span><a href="https://everef.net/type/34133" style="font-family: verdana;" target="_blank">Multiple Character Training certificates</a> <span style="font-family: verdana;">which comes to 50 Plex per month across the Account.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">50 Plex at 5.2m isk costs 260m isk. </span><span style="font-family: verdana;">2 <a href="https://everef.net/type/34133" target="_blank">Multiple Character Training certificates</a> on the market costs 4bn isk or, in the ingame store costs 350 Plex.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">I went for it</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I was coming up to the point where i had to renew my 3 month Omega across my 4 Accounts anyway but i was waiting for the Plex price to fall to 4.6m (i had sold all my Plex when it spike to 5.4m in a recent deal).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">However, even with Plex at 5.2m i decided that this deal was too good to miss and went for it.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Therefore, i spent 28bn isk to buy the 3 month omega + 6 month MCT across 4 accounts.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgKrV_GsfRmLSl_LeMbYX1jeu4ypUT0fDSxLkrV6fS0RRNRkniCHZTAWL8-iccviShKdjC-kXCs5jyZ2RvZUDbj18X_S__hchGDfANadBpU3J6oE-883mZggnK1TwlO5-rLbDThrhzYkctCQ_QC-5IaXnYA4cxtGkwmhm9qDNPqqH-FJrr-dwLYFNIBtP71" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="101" data-original-width="308" height="112" src="https://blogger.googleusercontent.com/img/a/AVvXsEgKrV_GsfRmLSl_LeMbYX1jeu4ypUT0fDSxLkrV6fS0RRNRkniCHZTAWL8-iccviShKdjC-kXCs5jyZ2RvZUDbj18X_S__hchGDfANadBpU3J6oE-883mZggnK1TwlO5-rLbDThrhzYkctCQ_QC-5IaXnYA4cxtGkwmhm9qDNPqqH-FJrr-dwLYFNIBtP71=w341-h112" width="341" /></span></a></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">How to think of this deal</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I was always going to buy the 3 month Omega anyway - so that is a sunk cost. Therefore, it is what i pay for Multiple Character Training that i focus on.</span></div><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">In effect, i bought 6 </span><a href="https://everef.net/type/34133" style="font-family: verdana;" target="_blank">Multiple Character Training certificates</a> <span style="font-family: verdana;"> in 4 Accounts for 600 Plex = 3.1bn isk.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiv8vFOS0A4vu99cby9LKunkCUnVS-ppJdUKW6RG_eD8S9ehgRJEtXz3gnk1_KxIBYF9CV_qd3Elx5StWqT9fo_kSSCSULy1kKZ-wsa0ydSI_vAwOxyYcIwS5zo8OJSDh6Zi0eAgBdaVbUUdywBFB7CKRVKH-w6fDsF94NTG5UD09rVoS3mzS7P_CFaSdi5" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img alt="" data-original-height="101" data-original-width="308" height="112" src="https://blogger.googleusercontent.com/img/a/AVvXsEiv8vFOS0A4vu99cby9LKunkCUnVS-ppJdUKW6RG_eD8S9ehgRJEtXz3gnk1_KxIBYF9CV_qd3Elx5StWqT9fo_kSSCSULy1kKZ-wsa0ydSI_vAwOxyYcIwS5zo8OJSDh6Zi0eAgBdaVbUUdywBFB7CKRVKH-w6fDsF94NTG5UD09rVoS3mzS7P_CFaSdi5=w340-h112" width="340" /></span></a></div><span style="font-family: verdana;"><br /></span></div><div><span style="color: red; font-family: verdana;"><b>If i had bought this in the market, i would be paying 2bn isk per character per month. I other words, 2bn x 8 characters x 3 months = 48 bn isk or, in the ingame store, i would pay 1500 Plex x 4 Accounts = 6000 Plex.</b></span></div><div><span style="color: red; font-family: verdana;"><b><br /></b></span></div><div><span style="color: red; font-family: verdana;"><b>Which ever way i look at it, i got around a 90% discount.</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Entering the Skill farming market</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Now, i have 11 characters that have more than 5.5m skill points (the amount required before skill points can be extracted).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Each character generates 37.5 skill points a minute (i have not maxed them out by mapping, merely got the best implants).</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That means, over 3 months i can generate 53m skill points:</span></div><div><span style="font-family: verdana;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEg-Ewd06AqLZ776GO7qK1C-_gVLoiPmvIhijsVQo8XDvucmFYsZZba49tDZb-r91JwIkdvTlvHAxtCr6fTtsXIBsXWLng1BuOUenPn0FfrfstNyjfMa901vcYxXfTHCc2-WdH9Iq_stUcZ5W9nz87a0DsiP-sQeZVJg1QA1vALgB623AFszBJl2AslSX7tH" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="61" data-original-width="308" height="90" src="https://blogger.googleusercontent.com/img/a/AVvXsEg-Ewd06AqLZ776GO7qK1C-_gVLoiPmvIhijsVQo8XDvucmFYsZZba49tDZb-r91JwIkdvTlvHAxtCr6fTtsXIBsXWLng1BuOUenPn0FfrfstNyjfMa901vcYxXfTHCc2-WdH9Iq_stUcZ5W9nz87a0DsiP-sQeZVJg1QA1vALgB623AFszBJl2AslSX7tH=w457-h90" width="457" /></a></div><br /><br /></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: verdana;">Each skill extractor can take 500,000 skill points so i will need around 107 skill extractors.</span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: verdana;"><br /></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: verdana;">Today, the difference in price between a Skill Extractor and Skill Injector is 400m isk. If that difference holds (i doubt it, but lets dream) then over 3 months i would generate 42bn isk before Broker Fees and Transaction Taxes.</span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: verdana;"><br /></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: verdana;">Easily covering the 3.1bn outlay.</span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: verdana;"><br /></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: verdana;">This has to be the best deal i have seen.</span></div></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-80701238390246079572023-06-25T15:57:00.002+01:002023-06-25T15:57:44.674+01:00The cost of moving trading locations <div style="text-align: left;"><span style="font-family: verdana;">Well, we will all have seen the news CCP not allowing Extra Large Structures being anchored in High Sec followed by the Tranquillity Trade Consortium closing down and their main station being taken down. <a href="https://www.youtube.com/watch?v=i149j0aB8lc" target="_blank">Strange Net covered in a video</a>.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>The next domino to fall?</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Not too much of a leap to be concerned that iChooseYou stations could also be attacked. Indeed, it seems every corporation and their dog war dec'd iChooseYou. </span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">For me, i had two Trading Locations in iChooseYou stations - one in Sobesaki and one in Alentene.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">To be fair, nothing has happened and things may be happening in the background yet but i decided to move anyway.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>The cost of it all</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Between the two locations i had 226bn ISK of Sell Orders up.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">A bit too much to courier so i put them into <a href="https://wiki.eveuniversity.org/Asset_safety" target="_blank">Asset Safety</a> before the stations were attacked.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">So, i had to delist every order (it seems Sell Orders only go into Asset Safety if the station is under attack, not before), move them to Asset Safety, wait 5 days, move that to a new Station and then relist them all.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Cost of Asset Safety was 0.5%.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Cost of relisting was 1.5%.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Hence, the numbers: the cost of Asset Safety and relisting was 4.2bn isk.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">The difference between the sum of the Sell Orders at the iChooseYou and the new locations was 1.4bn.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Hence, the total cost of all this was 5.6bn isk and 5-6 days lost sales.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>Thoughts going forwards</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">I chose those locations because they had the best trade volumes in their areas - not for the lower taxes.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Whilst the cost was not onerous (around 15-20% of my normal monthly profits) it was tedious.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Hence, from here on in i plan to stick to NPC stations.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com2tag:blogger.com,1999:blog-1597676555600759067.post-87547954363019866802023-06-08T00:55:00.000+01:002023-06-08T00:55:05.404+01:00Eden Trade - another market trader<div style="text-align: left;"><span style="font-family: verdana;">Eden Trade, a market trillionaire, has two recent talks where he goes through his strategy that yields him 2bn profits a day.<br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b><br /></b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>Two recent shows to watch</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Firstly, he was on the <a href="https://www.youtube.com/watch?v=X5drbDfYd4A" target="_blank">Oz Show - Interview with Eden Trade</a> where he talks for over an hour with Oz about his trading strategies supported by slides.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Secondly, in Eve University he game a class <a href="https://www.youtube.com/watch?v=DeG15XZCuTs" target="_blank">Large Scale Trading</a> for just over an hour talking about his operations with large scale trading. Again, supported by slides.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Both are in depth talks where Eden is up front and frank about how he does it.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;"><b>His Operations</b></span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Eden started his market activities 4 years ago by building Trade Hubs. Now has 15,000 orders (yes, 15 thousand) valued at 1 trillion. His operation does 2500 transactions a day.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Like me, he buys from Sell Orders in Jita - it is quicker than putting up a Buy Order.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">He uses spreadsheets and links them in with the game to speed up the Buying process.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">He has 20 Omega Accounts.</span></div><div style="text-align: left;"><span style="font-family: verdana;"><br /></span></div><div style="text-align: left;"><span style="font-family: verdana;">Generates revenues of 5-7bn and profits of 2bn (those are superb margins).</span></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;"><div><span style="font-family: verdana;"><b>Where can Eden Trade be found?</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Eden Trade can be found in <a href="https://discord.gg/MJGSudP" target="_blank">Discord</a> and <a href="https://www.youtube.com/@edentrade4408/about" target="_blank">youtube</a>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">And i</span><span style="font-family: verdana;"> understand is doing a presentation at Fanfest in September.</span></div><div><span style="font-family: verdana;"><br /></span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-87834947935449805682023-06-05T11:06:00.002+01:002023-06-05T11:06:47.449+01:00I sold all my Plex - will buy back later<div><span style="font-family: verdana;">CCP are becoming more aggressive in their deals. It all really kicked off last September when there was a <a href="https://marketsforisk.blogspot.com/2022/09/plex-now-selling-for-53m-isk.html" target="_blank">material discount on the amount of Plex required to buy Omega</a>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">This time there is a <a href="https://www.eveonline.com/news/view/plex-for-less-june" target="_blank">material discount on the amount of Plex required to buy Skill Extractors</a>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The ingame store (New Eden Store) is offering a 2-for-1 sale on Skill Extractors and Daily Alpha Injectors.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I am not sure when it ends.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">CCP deals to buy cheap items for Plex always drives the price of Plex Higher</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The effect in both cases is that the demand for Plex goes up as players pile in to buy the Plex to then buy the cheaper Omega or, in todays case, the cheaper Skill Extractors.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">And then the Price of Plex will fall back</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Once the deal is over the surplus demand for Plex falls away and so the Plex price comes back to where it was before.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b><span style="font-family: verdana;">Where to find the analysis of this all</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Oz Eve, one of the go to people for analysis of what is happening on Eve Markets talked about it in his <a href="https://www.twitch.tv/videos/1836890395" target="_blank">weekly Twitch Stream on Saturday (he likes to call it Plexageddon)</a>, starts talking about it16 minutes in, and has a dedicated youtube report <a href="https://www.youtube.com/watch?v=L7-weKYYvz8" target="_blank">The Oz Report</a> which talks about all this about 1:45 in.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The effect this time is to reduce the price </span><span style="font-family: verdana;">Skill Extractors (as expected) by 40% and increase the price of Plex by 25-30%.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">i.e. Skill Extractors would halve but we need to rebase this upwards given the rise in Plex Price.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>The Trade to do every time is the same</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">For me it is simple, i sell all my Plex and then buy it back later.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I had 4500 Plex which i sold at 5.6m isk.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">This stock pile had cost on average 4.4m per Plex. So that is a nice 27% profit before taking off the 3.6% Sales Tax.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In the next week or so i will rebuild my stock pile at a lower price.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Technically, it was still possible to make an additional profit by converting your Plex to Skill Extractors and selling the Skill Extractors. But i am a simple man and want to keep all things simple.</span></div><div><br /></div><div><br /></div><div><b><span style="font-family: verdana;">Will the Plex price fall back?</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">It should do. The main risk is if players now come to expect these deals to happen every 3 months then there will be a stronger than normal rebuild of Plex in inventory.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The events in January and April recovered quickly.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><b>Will the Skill Extractor price recover?</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Again, it should do though may take longer. Plex can be used for more actions where as Skill Extractors can only be used for one thing.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That said, stocking up on Skill Extractors to sell back later is not a bad idea.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><span style="font-family: verdana;"><b>A key secondary reason to hold Plex</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">These more aggressive deals means that for market operators there is an additional reason to hold Plex. Every 3-6 months an opportunity will present itself to trade in your surplus Plex to make a nice instant profit.</span></div><div><br /></div><div><span style="font-family: verdana;">As i write this article, the Buy Price for Plex in Jita is 5.7m isk.</span></div><div><br /></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0tag:blogger.com,1999:blog-1597676555600759067.post-16644246339585180952023-06-03T04:11:00.000+01:002023-06-03T04:11:06.994+01:00Month end update - May 2023<p><span style="font-family: verdana;">As at the end of May 2023 my wealth is <b>1.07 trillion</b></span><span style="font-family: verdana;"> ISK</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">after paying 8.2</span><span style="font-family: verdana;">bn to upgrade to Omega for another 30 days for four accounts. My Wealth increased by <b>69</b></span><span style="font-family: verdana;"><b>bn</b></span><span style="font-family: verdana;"> in May.</span></p><div><span style="font-family: verdana;">Technically, <b>my wealth is 1.300 trillion ISK </b>but i always take a 20% provision against Sell Orders to be conservative. Hence i quote <b>1.07 trillion</b>.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">After April this is another pleasing month into what is normally a slower month after winter. Much like April, i don't think this is any more complicated than i have 1.2 trillion worth of items for sale on the market vs 0.4 trillion in May 2022.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><span style="font-family: verdana;"><b>The Next Chapter</b></span></div><div><br /></div><div><span style="font-family: verdana;">1 trillion was always the aim. The question i am asking myself is what to do now?</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Not sure i have the patience to go for 2 trillion using the same process. Over the last 12 months i have made 680bn profits after all costs including Plex. So it would take 12-18 months to generate another trillion.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">One dream is to increase my wealth by more than 100bn in a month. I think that can be done this winter but is a big push for the summer months.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">But, when i started this journey back in August 2020 i wanted to experience more of the Eve ISK making avenues.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I do a bit of manufacturing on the side - i want to do a lot more of that.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Tried Planetary Interaction - it worked but was tedious and took too long.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Tried Invention - will give it another go.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">There must be so much more that i can do in Trading. I do a bit of station trading in Jita - that is going well. I have not tried investing (buying, holding for a while and then selling).</span></div><div><br /></div><div><span style="font-family: verdana;">So, lets see what i come up with.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><b><span style="font-family: verdana;">Quick Summary</span></b></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">For me, the market took off in May with sales up 32% to 415bn. heavily biased to the weekends.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That said, my profits only rose 6% and that was because my item margin fell from 33.2% in April to 26.8% in May. 26.8% is perfectly acceptable and above the 25% target. April was the outlier.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Record sales in Dodixie of 145bn. The new Omega account in Arnon and Alentene made sales of 16bn - and so justified their Omega status.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Sales were up over 20% in all locations except Hek and some of my Alpha account locations.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In the last 12 months i have made sales of 4.0 trillion isk and profits (after everything including Plex) of 680bn isk having spent 80bn on Plex.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><div><span style="font-family: verdana;"><b><span style="color: red;">The overall aim of what i do is to increase my wealth by at least 10bn per month</span></b>. So far i have beaten that in 26 / 33 months i have been running this venture and indeed in all of the last 22 months. If i get to 24 months then i will drop this as a target to whitter on about.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">A year or so ago the dream was to be making more than 1 billion profits a day including Plex costs to Omega the accounts. That has been achieved for each of the last 11 months. If i get through the summer and into the autumn and am still achieving this then i will stop talking about this one also.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">For the last 7 months, my daily profits have been around 2.4 billion isk generated by daily sales of over 10bn.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;"><br /></span></div><div><b>Activity</b></div></span></div><div><div><span style="font-family: verdana;"><div style="font-family: "Times New Roman";"><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I continue to come on once a day to update Sell orders and replace items sold. About 30-45 minutes. Getting closer to 45 minutes these days.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I spent less time this month looking for new products to sell. Time was tight.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div></span></div><div><br /></div><div><span style="font-family: verdana;"><b>Target daily sales required to achieve 1bn profits per day</b></span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">In summary, i generally need to make 7.5bn sales per day assuming my item margin is 25%</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">As the cost of plex rises then my daily sales requirement also rises.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">On the current taxation levels to make 30bn ISK per month i would need to cover:</span></div><div><span style="font-family: verdana;"> - Plex costs of 3 x 500 x 4.7m = 7.1bn</span></div><div><span style="font-family: verdana;"> - Courier costs 2% of sales (i.e. = purchase cost + collateral)</span></div><div><span style="font-family: verdana;"> - Broker Listing fees 1.5% of sales</span></div><div><span style="font-family: verdana;"> - Broker re-listing fees 0.3% of sales (lets assume all sales changed at least five times per month)</span></div><div><span style="font-family: verdana;"> - Transaction Taxes 3.6% of sales</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">That all works out at 225bn monthly sales will generate profits after all costs including Plex of 30bn isk. = 7.5bn daily sales.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Bottom line is that assuming i make my 25% profit margins then each 1bn of sales creates profits of 164m and these go towards buying Plex for the Omega accounts and whatever is left is reinvested in the business.</span></div><div><br /></div><div><br /></div><div><span style="font-family: verdana;">Looking at some sensitivity analysis</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">- if my item margins were 28% instead of 25% then i need only make 192bn isk of sales (or 6.4bn per day)</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">- if Plex rose from 4.7m to 5.0m then then i need to make 228bn isk of sales (or 7.6bn per day)</span></div><div><br /></div><div><br /></div><div><br /></div></div><div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><b>Review of the May aims</b></span></span></div><div style="color: #222222;"><br /></div></div><div><div><span face=""><span style="font-family: verdana;"><span style="color: #222222;">1) Plex the four omega accounts - aim number one all the time</span><span style="color: red;"> - achieved</span></span></span></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><span style="font-family: verdana;">2) Hold sales in Dodixie to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 28%</span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">3) Hold sales in Amarr</span></span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 30%</span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span style="font-family: verdana;">4) Hold sales in Rens</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 26%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">5) </span><span style="font-family: verdana;">Hold sales in Hek</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, down 14%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">6) Hold sales in Sobaseki</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 30%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">7) Hold sales in Tush-Murkon Prime</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, up 273%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">8) Ramp up Arnon and Alentene</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">9) Hold the investment and profits in Manufacturing</span><span style="color: red; font-family: verdana;"> </span><span style="color: red; font-family: verdana;">- achieved, sales and profits up</span></div></div><div style="color: #222222;"><br /></div><div><span style="font-family: verdana;">A very positive month. All aims achieved.</span></div><div><br /></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><b>Reminder of my Current Business.</b></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">For now 99% of what i do is inter-regional trading - buying from Sell Orders in Jita to sell elsewhere. The rest is made up from Manufacturing.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;">For Trading i focus on slow moving but high margin items. That keeps me away from fierce competition and i only need to sell an item once every 10 days to make good income. In other words, i don't really care if an item sells once every 10 or 20 days, if have many hundreds of items for sales across Eve and so each days a few items will sell and that generates all my income.</span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;">To put this in perspective. I had Sell Orders of 1042bn up at the start of May which generate sales of 415bn. In other words, i sold between 1% to 2% of everything i had for sale every day. The is slow and i like it. Not for me the cut and thrust of high volume low margin world. Slow and easy for me. Tortoise and hare stuff.</span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="color: black; font-family: "Times New Roman";"><span style="color: #222222; font-family: verdana;">For this side of my business, lets call it Merchanting or inter-regional trading, i want to generate profits of 10bn ISK per month after paying to Plex my account. Given i now have eight Omega alts in Amarr, Dodixie, Rens, Hek, Sobaseki, Tash-Murkon Arnon and Alentene i am hoping that this 10bn aim will be easily achieved.</span></div><div style="color: black; font-family: "Times New Roman";"><br /></div><div style="color: black; font-family: "Times New Roman";"><span style="color: #222222; font-family: verdana;">My business model evolves over time. As my wealth increases i focus on higher value items. Therefore, i try also to stick to the rule of making a minimum of 100m profit per item sold. </span><span style="color: #222222; font-family: verdana;">i.e. if i buy an item for 70m then i aim to sell it for at least 170m isk. This makes sure i don't waste my time on making low absolute profits and so preserves the 45 minute rule.</span></div></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">My main business is operated with four omega accounts (paid for with plex) with twelve alts.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">The main Trading alts sit in Dodixie, Amarr, Rens and Hek. I have also omega alts in the new Trading locations of Sobaseki (in Lonetrek), Tash-Murkon Prime (in Tash-Murkon), Arnon (in Essence) and Alentene (in Verge Vendor).</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;">The other four alts sit in Jita and buys from Sell Orders, has these items couriered to the alts in Dodixie / Amarr and Rens / Hek and Sobaseki / Tash-Murkon Pime and Arnon / Alentene who then put them onto these markets for sale.</span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;">The Jita alts also serve to sell items that i can no longer sell in my trading locations Sort of clearance sales.</span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;">I also started in December 2021 to place alpha alts in other regions to see how it goes. I just need two of them to demonstrate that they can combine to justify an Omega account. Also, they need to take up very little of my time. So far the Sobesaki / Tash-Murkon alts and Arnon / Alentene made the grade and were upgraded in two accounts.</span></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span style="color: #222222;"><br /></span></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">The other regions so far are: Placid; Citadel and Khanid. And i am in an NPC station in Delve and Outer Ring. </span><span style="color: #222222; font-family: verdana;">I have started in Venal.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I am struggling to make the Low Sec locations work.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>What do i sell?</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><div>I sell blueprints, skill books, implants and ship equipment.</div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">I am trialling selling structures like jump gates, stations, station modules and other infrastructure items. This is doing better than i expected.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><br /></div><div><br /></div></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>What was selling in May?</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Blueprints did very well - and given i sell them at a strict 25% margin that can bring my margin down nearer 25% when Blueprints sell well. There is a Blueprint competitor in Dodixie who i am fighting.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Implants are still doing well and tend to be the most competitive - i am slowly expanding into more types and moving up the ISK value curve. And rolling them out to all my Trade Hubs. </span><span style="color: #222222; font-family: verdana;">They don't sell well but when they do i tend to get a whole family sold at a time (alpha, beta, delta, epsilon, gamma, omega). Again, that's how i like it. A billion or so of investment can take 30 days to sell.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><div><br /></div><div>Ship equipment is a staple revenue stream for me. Especially Vorton items.</div><div><br /></div><div>Mining equipment is making a comeback of sorts but is competitive.</div><div><br /></div><div>Skill books are now my lowest income generator - very few sales now. Barely happening at all.</div><div><br /></div><div><br /></div><div><br /></div></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Jita</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Traditionally i never sold anything in Jita unless it was being transported back from one of my trading hubs because i could not sell it and so to be sold at Jita prices to get some isk back.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">The Ship Blueprint seller went absent from November to February in Jita and i made out like a bandit. But the seller has now returns and seems to be on 24/7 - so i have been forced out of the Jita Blueprint market. At its peak this was making sales of 100bn.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I also do station trading in Jita (that is - put Buy Orders up in Jita and then when those Buy Orders are executed i then put the item up for Sale in Jita at a higher price). I stick to the slow moving items again. That said, i don't actually know how much this earns me but i know it is getting better. The margins are huge. I am buying items for 500m and selling them for 1bn.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">Also, in JIta, i manufacture items and sell them in the Jita market.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><b style="color: #222222; font-family: verdana;">Manufacturing</b></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">I am now ten months into my Manufacturing project. It remains slow and i need to up my game (i know, i said that before).</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">In May i made 10bn of sales generating an item profit of 2.3bn and so after taxes a profit of 1.8bn.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">Getting better but needs to be much better.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Other High Sec Trading Locations</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I don't want to spend all my time on Eve doing Regional Trading (buying from one region, mainly Jita, to sell to another) but i do want to see if i can find really low competition but stable revenue streams of trading.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">The current alpha account regions so far are: Placid; Citadel and Khanid. And i am in an NPC station in Delve, Outer Ring and now Venal.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">My alts in Arnon and Alentene were upgraded to Omega during January.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">In these alpha accounts i am winding them down. I don't want to convert anymore to Omega.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Delve</b></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I want to experiment with selling in null/low Sec. Hence, i have found an NPC station in Delve and started experimenting with items to sell.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">It is not going well - sometimes threatens to improve but then fall back again.</span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">As with my other alpha accounts i am letting it wither away on the vine.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;">I am rethinking how to make low/null sec work.</span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="color: #222222; font-family: verdana;"><b>Plex</b></span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">I am aim to store up to 6 months of Omega for each of the Omega accounts which would mean buying 12000 Plex (= 6 x 4 x 500).</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">I now have 4500 in stock - so no change during May. I don't plan on buying any Plex in the near term given my surplus isk is going into stocking up on the Arnon and Alentene trading locations.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;">That said, CCP are changing their attitude to Omega prices and there is a permanent sale on that gives a discount to the Plex required for longer periods of Omega purchases.</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><br /></div><div style="background-color: white;"><div><span style="font-family: verdana;"><b>A minor accounting point (again)</b></span></div><div><span style="font-family: verdana;"><b><br /></b></span></div><div><span style="font-family: verdana;">Similar to back in September 2022, i have to think how i account for buying three months of Omega for each Omega account (4 accounts). I repeated this in December and again in February.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Hence, in the December deal and in February i spent 26bn and 18bn respectively buying 3 month Omega deals for Plex.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The way i account for this is to hold the entire amount as wealth and reduce this "asset" by a month at a time.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The alternative accounting treatment would be to count the 26bn and 18bn as costs in the month they were expensed which means December and February would look week but January, March and April stronger.</span></div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">It all adds up to the same number just the timing of recognising the cost is different.</span></div><div><br /></div><div><br /></div></div><div style="background-color: white;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><b>Analysis of Trading Profits</b></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><b><br /></b></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">In total i made 415bn ISK of sales in May which made me item profits of 111bn ISK.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">(item profit is the simply difference between sales done vs costs spent buying products, so before fees and taxes. Because i don't yet invest in items other than Plex i don't make any allowance for items still in stock - in part because i don't track the cost per item spent).</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Overall, sales rose by 32% in May which was all Trade Hubs up except Hek.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Dodixie was the best selling Trade Hub at a record 145bn followed by Amarr at 91bn. Rens was 48bn and Hek 33bn. Sobaseki + Tash murkon did 53bn whilst Arnon + Alentene did 16bn.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">Jita did sales of 34bn, the first increase since November 2022. This was driven by my Station Trading.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">The item profits of 111bn was an item margin of 26.8% (111/415) vs my target of 25%. This is another good month for margins but down on the April level of 33.2%</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">From this I then need to take a whole series of costs off before i get to my Business profits (and notice how they are more related to Sales rather than costs):</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;"><b><span style="color: red;">Courier Fees</span></b><span style="color: #222222;">: i aim to pay 2% of sales value to the Courier = 8.1bn</span></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;"><span><b><span style="color: red;">Sales tax</span></b><span style="color: #222222;"> cost me 12.8bn ISk (=3.09% of sales) - </span></span></span><span style="font-family: verdana;"><span><span style="color: #222222;">the Dodixie, Amarr, Rens, Hek Sobaseki, Tash-Murkon, Arnon and Alentene and Jita characters are leve</span></span></span><span style="font-family: verdana;"><span style="color: #222222;">l 5 in</span><span style="color: #222222;"> </span><a href="https://wiki.eveuniversity.org/Skills:Trade#Accounting" target="_blank">Accounting</a> (=sales tax of 3.6%); and of course all the alpha alt accounts are only Level 1 (=sales tax of 8%).</span></div><div style="background-color: white;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white;"><span style="font-family: verdana;"><b><span style="color: red;">Broker Fees</span></b><span style="color: #222222;"> costs me 15.2bn (=3.7% of sales, Dodixie is more competitive so i was changing prices more). Now, i can break this down into the initial listing fee of 1.5% (because i am Level 5 </span><a href="https://wiki.eveuniversity.org/Skills:Trade#Broker_Relations" style="color: #222222;" target="_blank">Broker Relations</a><span style="color: #222222;"> on all Omega characters and lets to make the sums easier and include all the alpha alts) and therefore the rest is the cost of changing the price which is 0.30% a shot (i may have that 0.30</span></span><span style="color: #222222; font-family: verdana;">% completely wrong!).</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">So, Listing Fee = 1.5% x 415= 6.2bn and so the Relisting Fee = 15.2-6.2 = 9.0bn which is 2.2% of sales. That shows that i do change prices quite often, bias to Amarr, Jita and now Dodixie. Someone is taking me on in Dodixie. Will need to be crushed.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">This takes my 'Business Profits' to 77b</span><span style="font-family: verdana;">n ISK for May vs 73bn in April. This is what 30-40 minutes a day in May gave me.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">A number of my Couriers got ganked and so the surplus collateral that flows to me added 2.2bn to profits.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">So, the post-tax margin is 18.5% (77/415) and so i achieved the 15% target.</span></div><div style="background-color: white; color: #222222;"><br /></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">The omega charge was then 8.2bn (see above in Plex section)</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;">That, therefore, is the road map from 415bn sales to 69bn increase in wealth.</span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><div><br /></div><div><br /></div><div><br /></div><div><b>Courier Contracts</b></div></span></div><div style="background-color: white; color: #222222;"><span style="font-family: verdana;"><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">Each night, i get home from work and determine what i need to sell in all the locations.</span></div><div><span style="font-family: verdana;"><br /></span></div><div>The time is taken changing prices were necessary (especially Amarr given it is competitive and increasingly Dodixie) and then figuring out what to sell with the ISK made from the prior 24 hours sales.</div><div><br /></div><div>I have a list of items that feature regularly and i add to this list as time goes by. So is a case of checking Jita prices vs current location prices.</div><div><span style="font-family: verdana;"><br /></span></div><div><span style="font-family: verdana;">The Rens, Hek, Sobaseki, Tash Murkon, Arnon and Alenetene markets take less than 2 minutes each to check.</span></div><div><br /></div><div><span style="font-family: verdana;"><div><span style="font-family: verdana;">To look up prices in Eve I am using </span><a href="https://evetycoon.com/market" target="_blank">Eve Tycoon</a><span style="font-family: verdana;"> which seems to have more of the latest items in its market browser. I used to use </span><a href="https://evemarketer.com/" target="_blank">evemarketer</a><span style="font-family: verdana;"> but i just got used to </span><a href="https://evetycoon.com/market" target="_blank">Eve Tycoon</a>.</div><div><br /></div></span></div><div></div><div>Each night i courier about 10 to 50bn ISK of items from Jita. Used to be 2-10bn but things are better these days and i have more items up for sale. The total cargo volume is 10-250m3 per shipment though more recently often over 10,000m3. So small but valuable items. But this allows the couriers to use small, fast ships with much less chance of being ganked. So there is always someone willing to pick up the contract quickly.</div><div><span style="font-family: verdana;"><br /></span></div><div>I pay a generous 1.5 to 2.0% of collateral as fees. I am more interested in getting my items onto the market quickly than penny pinching on distribution costs.</div><div><br /></div><div><br /></div><div><br /></div></span></div><div style="background-color: white;"><div style="color: #222222;"><b><span style="font-family: verdana;">Outlook<br /></span></b><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">June will have ten conservative aims - it will be amazing if i could match May's sales but i doubt i will. </span></span><span style="font-family: verdana;">Hence, the aims will be:</span></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">1) Plex the four omega accounts - aim number one all the time</span></span></div><div style="color: #222222;"><br /></div><div style="color: #222222;"><span style="font-family: verdana;">2) Hold sales in Dodixie to down 20%</span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;">3) Hold sales in Amarr</span></span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span face=""><span style="font-family: verdana;"><br /></span></span></div><div style="color: #222222;"><span style="font-family: verdana;">4) Hold sales in Rens</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">5) </span><span style="font-family: verdana;">Hold sales in Hek</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">6) Hold sales in Sobaseki</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">7) Hold sales in Tush-Murkon Prime</span><span style="font-family: verdana;"> </span><span style="font-family: verdana;">to down 20%</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">8) Ramp up Arnon and Alentene</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div style="color: #222222;"><span style="font-family: verdana;">9) Hold the investment and profits in Manufacturing</span></div><div style="color: #222222;"><span style="font-family: verdana;"> </span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span></div><div><span style="color: #222222; font-family: verdana;">The daily sales in May averaged 13.4bn.</span></div><div><br /></div><div><span style="font-family: verdana;"><span style="color: #222222;">Current wealth is </span><span style="color: red;"><b>1.07 trillion </b></span></span><span style="color: #222222; font-family: verdana;">ISK made up from:</span></div><div style="color: #222222;"><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Plex held as an investment 21bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for sale 17bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Items in hanger for use in business 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Omega brought forward 11bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">Buy orders on the market 42bn ISK</span></li><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">items for sale 1156bn ISK</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">less a 20% provision 231bn ISK*</span></li></ul><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;"><li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: verdana;">ISK in wallet 42bn ISK</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;">When i add up my wealth, I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc. The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK or are used to generate isk that can be readily resold back onto the market. Any ships or skills or fittings etc i buy are counted as expenses in that month. The only exception to this rule is Blueprint Originals i use for manufacturing. They are held at cost.</span></div><div style="color: #222222;"><span style="font-family: verdana;"><br /></span><span style="font-family: verdana; font-size: x-small;">* I take a 20% provision against the items I am selling. Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK). For me, I want my wealth to be calculated at cost. I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold. Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold. In an ideal world I would value my sell orders at the value which I bought the items for.</span></div></div>Crodahttp://www.blogger.com/profile/16620994327943613623noreply@blogger.com0