Hi Guys,
Thought this article might be of interest.
Spoke to the company yesterday and the due diligence for the SPT deal was completed Monday. Expecting finalisation of the SPT alliance early March if not before.
ABN Amro Morgans Initiates B Digital With Buy
Monday January 17, 2005, 9:39 am
Growth in the Australian mobile market is beginning to wane,ABN Amro Morgans notes. After double digit growth from 1998 to 2002, penetration of the market had reached 73% in 2003. The broker does not expect to see double digit growth in the sector again.
This means thesector now appears ripe for consolidation,and ABN Amro Morgans thinkswe are beginning to see it already with the B Digital (ASX: BBB.ax) and SOT alliance. B Digital has just acquired SOT’s Kooee business and 50% of Comindico for what the broker believes is an "attractive" $13.75m.
Given the decline in subscriber growth, it is now important to focus on average revenue per unit, the broker suggests. This is where the bundling strategy that B is now undertaking will come into its element. The broker does offer a note of caution, however, in that B must ensure that its mobile offerings don’t cannibalise its new internet and fixed line services which DigiPlus provides.
The broker has initiated coverage of BBB with a $0.73 price target, being 56% above the current share price, and a Buy recommendation.
Cheers
aid
BBB
b digital limited
