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Red bull is an amazing company that is like the next town over from KTM and made a commitment to them, a lot of companies could learn a lot from their relationship.
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Speaking with my wallet. My latest taste of Orange Kool Aid..2016 KTM 250 XCW...
You don't get to where KTM is without counting beans and being business savvy.
That said, Honda, Yamaha and KHI will be fine,with or without dirt bike sales. They are watching KTM but nobody in Japan is panicking, IMO.
Interesting thing about India is they have a cc limit on street bikes (500 I think) ...so KTM's 390 might be very popular there
No, I don't own a KTM, a Honda actually.
So then what are these bikes?
Pit Row
KTM have reported that they have had a sales increase to 88,531 vehicles (+25.6% to prior year) and increase in revenue to EUR 515.1 million (+25.5% to prior year) in the first half of 2015.
Sales: 88,531 vehicles / +25.6%
Revenue: EUR 515.1 million / +25.5%
EBIT: EUR 50.3 million / +49.7%
In the first half year 2015 KTM sold 88,531 vehicles worldwide.
Therefore, sales increased by 25.6% compared to prior year. In the first half year, KTM achieved revenue of EUR 515.1 million compared to EUR 410.3 million in prior year.
Increase in EBIT to EUR 50.3 million (+49.7% to prior year) By this significant increase in sales and revenue, KTM could increase EBIT to EUR 50.3 million compared to EUR 33.6 million in prior year. Therefore, KTM achieved an EBIT margin of 9.8% in the first half year 2015.
The beauty of KTM is that Red Bull pays a lot of sponsorship money for their race teams so they don't have a lot of financial costs there compared to say Honda (who doesn't have a major MX/SX team sponsor in either Europe or USA), if they didn't have a major sponsor then you might see less of a profit
The profit is the end result of how they manage their business. The fact they have a big sponsor for their racing efforts is kinda irrelevant.
KTM focus themselfs purely on niche markets tho. Unlike Honda, their market is waaaaay bigger. And so is their R&D spendings, 6.3 BILLION.
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