A few quick thoughts.
Pluses:
- FDV as a whole, and Zameen, appear to be tracking as promised.
- Infocasas, the little engine that could. It's good to have picked up a near-20% chunk of this for 5x revenue even at the cost of dilution to FDV holdings. The last 3 years have been quite a trajectory, even if further growth may be capped by the relatively smaller markets in which it operates:
Minuses:
- The financials are frustratingly opaque and the presentation (as usual) rather window-dressed, which is one of the reasons I don't own more of this despite it apparently all going to plan.
- The recent iMyanmarhouse and LankaPropertyWeb purchases - 14x revenue multiple for each of these businesses seems excessive when FDV as a whole trades at 10x. LankaPropertyWeb in particular does not look equal in quality to the rest of the holdings.
- Negative EBITDA for Zameen in the December half, despite 8% higher revenue than for June '19. It would be good to have an explanation for this. I'd speculate a bump in marketing spend, given the way the listing numbers improved after cratering in July.
The growth in listing activity through late 2019 and early 2020 suggests a good up-coming quarterly.
(20min delay)