Jun 27th, 05:22 SLIB SLIB, SL International Business
by Tyrian Camilo

Buyback plan and current SL Economic status

Current SL economy status is far grimmer than a lot of people recognizes, it's not a secret there's been lately some "problems" so to speak, but many does not realize how widespread it is. This situation is due to many reasons.

In late december and early january, we received news that a lot of malls are bankrupting, kinda like closing down on left and right.

Content creators reported slower sales as well.

Late January & February were repoted to be better by content creators and business owners.

March and thereafter people reported a huge slump in sales, many reported their sales are under 10% of the usual, situation again recovered to a degree.

Land flood began and all businesses were suffering, everyone was tying up their money in Land.

Early June reports: Escorting service businesses, gentleman's clubs and such are having way lower sales and revenue than usual. Many RL businesses, and projects with RL origins has been reported abandoning Second Life. There's also a little bit more to this, smaller details and individual companies reporting problems.

My personal opinion of the market is that it's maturing.
Residents profitting by the chart Linden Lab provides (incomplete data) has been increasing, so the best guesstimate is that market is maturing.

When market matures, competition gets way stiffer, and only the truly excellent in all business areas shall succeed, those who has the fittest operation, and provides an overall excellency over the competition. and a little bit of luck is needed as well. This combined with the RL economic crisis in US representing the single largest user group makes a lot of businesses hard to succeed.


SLIB's financial status is roughly this: More money lost due to old bank's bankruptcies (L&L Bank and Trust), Estates have very low occupancy rate. People complain about high prices, while we have the lower end of tier pricing compared to competition. A lot of mainland rentals lost, some recouped. Estate rentals doing good. Item sales doing good. Mainland sales are total crap, even best days achieve only marginal turnovers, mainland holdings at a ever high. Mainostaulu doing better advertising sales wise in terms of amount of advertisers than ever, assuming due to two reasons: Direct sales approach, market situation. Profits are low to say the least, infact Estate business is now turning in a loss due to low occupancy rate. Estate land price seems completely irrelevant to the amount of sales.


So how about our buyback plans then?
We have committed to that, and we buy always when there's profits. But as anyone with any business knowledge knows to say: Don't kill a milking cow for any reason.

We cannot liquidate other than stocks pretty much in order to create liquidity to buyback shares. Even this money is better spent on paying off accrued debt for the expansion.

Best Regards,
Tyrian Camilo

PS. If you haven't yet seen, go and take a look at: http://www.sl-international-business.com