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17.0¢ isentia group limited

Ann: Isentia Half Year Financial Report, page-31

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tecnoz70

208 Posts.

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02/03/20

17:14

Post #: 43263354
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Originally posted by Jay321: ↑

The valuation question hinges around the simple question of wether the business is terminal or not. The revenue slide is significant, so if it were to continue at the same rate the bottom line would disappear. So then the question is why the revenue is dropping, is it losing customers because the service is no longer of value? No, its falling because a disrupter or two are working leaner operations and have reduced the margins. There is a point at which the leaner operations can't viably service the many thousand of ISD customers, they don't want to, not their model. Its high end big customers, thats why Streem has gone to the UK. IMHO we will see a drop in the churn rate but we also have to expect that revenues will be reduced by the new normal of lower rates offered by competitors even when accounts are renewed. I expect the business to stabilise in time and for that reason I see value and continue to be optimistic about the future for the company. It is certainly not terminal, again IMHO.

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but how do you so sure it’s not sustainable for stream?

and how it has anything to do with uk operations. They must be having spare money to invest more in uk.

And that spare money must be from profits in oz.

so why do you think they will struggle?

ISD Price at posting: 20.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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