Estimated eRepublik Profits

Day 1,812, 15:47 • Published in United Kingdom Norway • by Major Lee Hung
Before reading, please be aware that these may not be accurate - they're based on financial data of similar companies, but each company has it's own unique setup - No cash flow data is currently publicly available for eRepublik that I know of.

This is based on current statistics you'd find on most browser games. I'm unsure of their network setup, so I'm going to have to take a guess on the exact size. (Hosting isn't too much of their expenses anyway)

Basic Estimated Costs

Servers
I estimate that eRepublik will likely run a small set-up with 1 server for hosting content (512MB RAM, 1TB HDD), 2 servers for running eRepublik (2048MB RAM, 50GB HDD) and 2 servers for battles (2048MB, 50GB HDD)

Bandwidth will likely be 2TB outoging and 100GB incoming, eRepublik operates with 1 external IP address.

Any more will be wasted resources as eRepublik isn't THAT active. (Most likely 50,000 unique hits per day)

Average Cloud Hosting Cost For Above Setup: Just under £800 per month.


Payroll:

I don't have too much information on the eRepublik team, but I'll estimate it by department. Let's pretend Alexis Bonte isn't Mr Krabs in human form and pays his employees around £1,500 per month each, I'll calculate it by department. (Pretty high pay in Romania so it should be accurate)

Community Management (2): £3,000
PHP Developers (4): £6,000
Artists (2): £3,000
Network Management (1): £1,500
CEO and other Directors (3): £10,000
Not going to include staff working on other projects

Estimated Monthly Payroll: £23,500P/M


Offices

The villa in Romania came right after a 2mil Euro investment, so I won't include that because I'm guessing it's paid for.

Spanish office likely comes to around £1,000P/M based on current local prices.

Utilities and such for both I'll guess at £700P/M more

Estimated Office Expense: £1,700P/M


Misc Expenses

Most game development companies pay for things such as pagers, company cell phones, employee benefits etc. There's also things such as Emailing services (To avoid having their mail sent straight to spam) data protection services and other little things. In total, it should come to no more than £5,000 P/M.


TOTAL EXPENSE: ~£31,000P/M



Income - Let's assume that eRepublik only takes 65% of each gold sale after taxes, transaction fees etc.

The ARPU (Average Revenue Per User) of online games varies greatly - it's just short of £7/user on games like Second Life, but games like Runescape struggle to pass £0.50.

As eRepublik is probably just above RuneScape (Thank Romper) we'll put the ARPU, just to be safe, at £0.50 if you take in to account just over half of the gold sales reaches eRepublik.

Note that this is per month

I'd estimate there's 130,000 active players each month, (100,000 less than eRepublik reports) so at the absolute minimum, eRepublik's revenue comes to £65,000/month. The maximum would be just short of £100,000/month.

So to be safe, we'll go with the very minimum:

Total Revenue: £65,000P/M

Total Profit per Month: £34,000 per month.

Note that this number doesn't include corporation tax, advertising expenses, repaying investors/creditors and re-investment into other projects.


This chart illustrates how much of the revenue is profit, and how much is spent

Yearly Profit: ATLEAST £408,000; could easily exceed £1,000,000 per year if the ARPU turns out to be higher.

This means that in 6 years, not including the time eRepublik has been operational already, all investments into the game will be completely paid off. In other words - eRepublik is a cash cow that is now being used to fund other projects. (Hence the lack of real updates, no community interaction and job postings for flash and PHP developers, yay for boring generic Facebook MMOs)



I hope you found this useful! If you have any true facts that I don't have or think something is missing, feel free to message me or post it in the comments!

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