Original URL: http://www.theregister.co.uk/2005/09/29/verisign_lowers_q3/
Crazy Frog emasculates Verisign earnings
Ding ding ding ding dididing ... lower than expected outlook
Posted in Financial News, 29th September 2005 23:16 GMT
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Verisign's ill-judged adventure into ringtones took a stumble today, as the company said it would miss its Q3 earnings targets. Verisign blamed the shortfall on having to abide with regulations on mobile content in Europe: regulations it has largely provoked through its own business practices. Verisign now expects its Q3 revenue to come in at $410m, rather than the $435 to $440m range issued in previous guidance.
And the notorious Frog's to blame.
Last year Verisign snapped up ringtone provider the Jamba! Group, which this year embarked on a cynical saturation advertising campaign - at one stage buying up more than 50 per cent of prime time TV advertising in some markets - for its Crazy Frog ringtone. Jamba's Jamster didn't make clear that the youth market being targeted was unwittingly being sold a subscription service, rather than a one-off download.
The result was a predictable explosion in revenues, and an equally predictable backlash. Last week the British advertisers' self-regulator, the ASA, banished the loathsome amphibian from appearing on the nation's TV sets before 9pm.
The frog, which had already lost its penis (http://www.theregister.co.uk/2005/07/27/itunes_emasculates_crazy_frog/) en route to the United States, now it appears to be losing its mojo, too. ®