TV2 (ASX) Expectations for next week

Originally posted by Compounding ↑

I have researched uptake rates from various other format of entertainment. If taking Netflix and Stan etc early on they achieved good rates but had differences to our model. Tv2U now have a few distinct advantages I believe, due to the awareness of similar global products and with coverage from differing media, populations are already hungry for our format of delivery and will be waiting to experience it as opposed to early days with developing the ideas of OTT entertainment was required first.

Also most other companies have built there user base locally first where as TV2U had the advantage of analysing the largest growing markets globally, specifically in relation to developing internet/broadband/WiFi access and infrastructure to allow exponential year on year uptake. These markets include Brazil and Indonesia, this is no coincidence. TV2U have been lucky in that they can learn from existing competitors and see the future markets. Look at Netflix sub numbers and how they increased dramatically once they globally expanded outside of America.

I won't go into sub number expectations even though I have estimated low and high values, I will jump straight past PE/EBITDA and cost/ARPU as well. I will simply say that from the model and information we have been given at this point if targets are met the SP at 12 months from March 2018 should be between 13-25 cents on Brazil alone. This is my estimate, if they are more successful in gaining traction I would revise this value upwards.

Last week I purchased my last parcel of TV2U, I am now sitting back to see how this company builds over the next 12 to 24 months. With a bit of luck and all the companies hard work mixed together the TV2U name will hopefully be synonymous with entertainment and media by years end if not sooner.

GLTAH and especially the ones who have been here since the GAL days. The next few weeks towards March will be telling for the company.

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I would be cautious drawing too many comparisons to "on-demand" providers. TV2U currently does not offer on-demand. It is essentially foxtel 10 years ago but mobile. Hopefully, the company will provide on-demand eventually, as previously indicated.....