Investment Projects, Business Armenia Wimedia going Global | Page 29

Assumptions
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The total revenue is comprised of 2 sources: Advertising Revenue and Big Data.
Calculation of Advertising Revenue is based on the following assumptions &
estimations:
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1 venue will provide 300 advertisement views/day
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Price per advertisement view in Brazil will be fixed to $0,01
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Revenues from Armenian market will stay the same, as the market is already
acquired
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Revenues from Georgian market will grow and reach the potential of Armenian
market in 2023
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Stable income from Spanish partner will stay $7,200
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WiMedia will enter Brazilian market from 2019
It is projected that inflows from selling big data will start from 2021.
Venues will receive commissions of 20% out of advertising revenue.
Server rental costs will increase in years proportionally to advertisements traffic.
Benefits for business developers will comprise 10% of Brazil’s Sales revenue.
The depreciation is calculated by straight line method (useful life of 5 years).
Forecasts do not incorporate additional capital investments in PPE.
Dividend payout ratio is taken to be 30% from Net Income, and the payments are
expected to start from 2019.
The exchange rate for 1 USD/AMD is taken to be AMD 480.
One year is taken to be 365 days.
Tax rate is taken to be 20%.
The growth rate starting from 2024 in NPV Terminal Value calculations is taken to be 3
%.
The WACC for discounting the FCFs is taken to be 13 %.
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