re: up 25% today Grant
How can you base an entire valuation just by the ARPU ( average revenue per unit)?
Thats is going to depend whether the customer is dialup, or bradband. You compare with SWT which is almost, if not entirely, broadband while DFT is a mix of dialup and broadband.
The wholeale price of a dialup line is much less than broadband, so discussion of ARPU, unless you know and compensate for the mix of dialup and broadband uses and expenses, is close to irrelevant.
An ARPU of $30 a month would be very good for a dialup customer. DODO for example advertises $10 a month.
So - I think unless you know how many broadband lines DFT is paying for, and how many dial-up's you cant value it this way.
Also, as usual you put no growth premium on it at all. DFT have gone from a loss maker to an ISP with 100 000 accounts and 4 quarters of positive cashflow with more to come by the sound of the announcement. You can't compare this to TLS as you imply with the comments about "scale". I could say that because TLS didnt grow by 248% in 6 months like SWT than its a dog, but its not a fair comparison as its off a low base.
The fact is DFT is quite large now ( 100 000 customers), its recorded 4 quarters of positve cashflow, growing strongly, and no longer has to report quarterly as so deserves a valuation at least at 3-4 cents in my opinion. Its cheap becuase it has alot of shares on issue.
DFT
datafast telecommunications limited
