Great post Tran! Keep up the maths
Let’s round it out to say if those revenue numbers materialise this would give us 2019
total revenues of ~$32m.
Gross profit = $12.8m (at 40% although rose to 45% in May)
Less fixed OpEx of $6m ($500k/month)
= EBITDA of $6.8m for 2019.
Conservatively as this is based on a slower growth more traditional advertising company, we should be trading at at least 13x EBITDA (Considering JCDecaux’s $1.2b acquisition of APN Outdoor, at an
EV/EBITDA multiple of 13x last year) if not multiples of revenue.
I’m seeing a MC of at VERY LEAST around $88.5m, or
a share price of at LEAST 17c, 4x where we are now.
I think while all eyes are on revenue growth a return to profitability should be an important catalyst to get us up and through that recent (pesky) high and resistance level of 5.3/5.4c soon.
Thanks again
@Tran for taking the time to share your research.
With Monday a non trading day on the ASX this gives Ted and the team one extra day to finalise May numbers. Hopefully we will see these Tuesday morning along with a general update on revenue growth.
GLTAH and all eyes on revenue growth!
Cheers,
TT
