1. They've re-affirmed EBITDA guidance of $33-36m for now. So that is something. But to hold from here, Australia needs to be addressed urgently!
2. VAS in Asia - strong revenue result.
3. Cost out! Plus more cost-outs.
3. Finally, operating cash has improved ... & net debt has fallen
The Bad:
1. While CEO going provides opportunity to get some fresh ideas, still not great news and adds some short-term uncertainty.
The Ugly:
1. The trend in Australia is not your friend
2. Margins are slipping
3. 'Old media' channel is dying
4. & the plan to stabilise revenue (as opposed to just cutting costs) is sketchy at best.
Bring on the new CEO - hopefully a hard nosed type with a history of turning around these types of plays...
The Verdict:
More uncertainty than the market can handle in the short-run so expect some softness. But I'll focus on the green shoots for now & trust that the BOD has learnt its lessons & gets in the CEO that this company requires ...
ISD Price at posting:
$1.21 Sentiment: Hold Disclosure: Held
