All very relevant concerns but understand the business and dont...

All very relevant concerns but understand the business and dont pay too much attention to share price albeit uncomfortable. If you are a trader you would be hurting but seeing as you invested in the company at share price thats very high it is uncomfortable. But as an investor you need to pay attention to the business.

Why are margins poor and why the result.

The non cash impairment is a one off - this will never occur again as intangible assets on balance sheet has been wiped out. You don't have to worry about impairment write offs in future. This is wholly to underperformance from digital advertising that fell off the cliff since 2020 Covid. Meta, Goog and Snap had similar impairments. Will digital advertising return? Of course it will - but balancing the business now is not a bad idea as marketing cycles are brutal like commodity cycles as tied-in with interest rates and capital budgets.

The costs that are butchering margins is because the company is spending 10% of revenue in product development amortised over three years. If you spend alot on product development costs are compounded when it is time to expense them. $40m in product development costs is taking away from bottom like so underlying NPAT without product development would be positive $20m



The underlying business is very strong and getting stronger. I understand the share price is very uncomfortable but focus shouldn't be turned away from the operating performance of the business. Which in my view is extremely healthy and growing. Unfortunately Digital Ad spend from Big tech is spoiling the party but it will return. Business is Booming.