"So what I want to see is a return to mid 40’s margin"
SLC4ME
I'm sorry to say, but there's little chance of happening. The good news though is that the margin compression has come about as a result of investing in the business ie: increased promotional expense and strategic hiring, which bodes well for the long term future of the business.
I agree there'll be some good revenue growth, predominantly from the classifieds business. The General items sector will muddle along as it has done for the past few reporting periods and probably shrink maybe 1-2%. It's a bit of a push to assume double digit growth, considering the only reason the Dec half was able to achieve that was due to the inclusion of the motorweb acquisition. Then again, maybe all the extra promotional work will work better than I envisage.
I'm most curious about an update on the Harmoney investment. a) because the whole p2p lending idea has the potential to be a highly disruptive industry (although I'm not convinced yet) and b) because I read an article which suggested they were growing their loan book by about 20%/month!! Exciting stuff!
Regards
Gralynchett
TME Price at posting:
$3.14 Sentiment: Buy Disclosure: Held
