No freefall for B4Bco

Local entertainment web portal B4Bco has quashed rumours that recent staff cuts were caused by disappointing business or wilting financial backing.

On the contrary, says company CEO Matthew Barrelle, the privately funded company continues to draw "real profits" and benefit from its healthy $16 million bank balance.

B4Bco operates portals for the sports, film and television industries.

Barrelle confirmed that "a couple of staff" were made redundant in a recent company reshuffle wherein the company's financial services division, Integritec, was put "on hold".

Some Integritec staff were redeployed to the "more profitable" sports, film and television divisions while others were made redundant, Barrelle said.

Less than 10 of the Sydney-headquartered company's 85 staff in total were affected by the reshuffle, he said.

Barrelle said that the shelving of Integritec was a direct result of the April 17 tech stock fallout.

Since the stockmarket correction, he said, dot-coms have been forced to narrow their focus down to core business strategies and short-term profitability in order to survive.

"The game's changed a bit. You can't go as broad as you could before," he said.

In place of the speculative long-term revenue models typically used just months ago as bait to attract investor funding, Barrelle said immediate profitability had "come back into fashion".

"You've got to behave more like a non-dot-com business," he said.

"You can't expand and grow market share as fast as you once could have with excessive funding available. You've got to grow things out more organically these days."

Company revenue figures were unavailable.

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