This ASX growth share has investments in leading online emerging marketplaces (such as South America, Asia etc). Two key areas where its marketplaces operate are property and vehicles.I think that digital marketplaces have strong revenue growth potential in the countries where it operates because of the level of future e-commerce adoption.
The ASX growth share is now demonstrating positive profitability as well.In the first three months of FY23, it reported its first quarter of operative cash flow of $0.6 million. There was also a 190% increase in portfolio earnings before interest, tax, depreciation and amortisation (EBITDA) to $2 million, with 12 of the 15 operating companies seeing an EBITDA improvement year over year.The operating leverage of the online marketplace model is compelling to me.
In three to five years, I believe the Frontier Digital Ventures share price could be much higher. Indeed, if it just gets back to where it was a year ago, it’d rise around 90%. It’s down heavily despite being the most profitable it has ever been.
It doesn't say anything we didn't already know.
FDV Price at posting:
43.0¢ Sentiment: Hold Disclosure: Held
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