March 1st, 2023 | 14:16 CET
Alibaba, Aspermont, ProSiebenSat.1 Media - Digital business models on the road to success
Table of contents:
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
Alibaba - Strong 3rd quarter
Founded in China in 1999, Alibaba is a global leader in online and mobile commerce solutions. Since then, the Company has become one of the largest and most influential global e-commerce companies. With more than 140,000 employees in over 200 countries and regions, Alibaba is a leading player in various technology areas, including e-commerce, cloud computing, online finance and logistics. The group recently reported strong financial results in Q3 FY2023, exceeding revenue and earnings forecasts.
Much of its revenue came from China. There, they have almost completely penetrated the market and still managed to grow 1% to USD 24.5 billion despite the extended Corona restrictions. In contrast, the international trading business jumped much more strongly, climbing by 26% year-on-year and generating around USD 2.1 billion. This growth is critical for Alibaba as it faces increased regulatory scrutiny and market saturation in China. Alibaba's international business contributed 8% of total revenue in Q3 FY2023, with Lazada in Southeast Asia and Trendyol in Turkey making significant contributions.
Given geopolitical tensions in other regions, Europe will likely be the key market for expansion. A downer in the figures was the weaker cloud growth. More had been hoped for here. Due to the regulation of the Chinese government, the share is traded with a significantly lower price-earnings ratio than other Chinese companies, such as JD.com. The stock is currently trading at USD 89.25 and has thus lost 25% of its value in the last month alone.
Aspermont - Subscription figures continue to rise
The print sector in particular has suffered from digitization. With the Internet, information was suddenly available to everyone everywhere. The former publishing house Aspermont has managed the transformation to a digital company, and thus Mining Journal, which can look back on a history of almost 200 years, still exists today. The Company focuses on business-to-business publishing in areas such as mining, agriculture, energy, construction and logistics using digital platforms. Over the years, this has created a huge database of millions of contacts, the value of which is now being leveraged using a Content-as-a-Service model, not only in the B2C sector but especially in the B2B sector.
As a result, the Company expects a record year for its Future of Mining event series, which takes place live on-site in Asia and Australia, having already surpassed pre-Corona levels by the end of January. On February 6, it announced a partnership with Saudi Arabia's Ministry of Industry and Mineral Resources to bring its 2030 vision for mining and green energy to the world. Subscriber numbers also continue to climb. Figures for the 1st quarter that ended December 31, 2022, show that subscription revenue was AUD 2.5 million, up 23% YOY. Total revenue was AUD 4.4 million. Despite uncertain times on the stock markets, things are looking up for the leading B2B media services provider for global commodities.
Further growth may occur on the Fintech Blu Horseshoe, as well as the translation of all content into all possible languages and the digitization of old print editions. According to the Company, the investments can be financed from the current cash flow. For more information, see the researchanalyst.com report. On January 24, there was a buy recommendation from GBC AG with a price target of AUD 0.10. Currently, the share is available for AUD 0.02. Thus, there is a lot of upside potential, while the downside should be limited.
ProSiebenSat.1 Media - Ahead of the 2022 annual report
ProSiebenSat.1 Media operates an international television network with over 60 TV channels and stations in 13 countries. In addition, the Company also holds various corporate investments, including online platforms, mobile services, digital media and e-commerce companies. These include well-known brands such as Verivox, Jochen Schweizer, Parship, Elite Partner, and others. By reaching out via TV, the Group can publicize its holdings accordingly and fill unbooked advertising space sensibly.
Even if 2023 could be challenging, the Company is still interesting for large investors. In December, major shareholder MediaForEurope filed a takeover with the Cartel Office in Austria. In early February, MFE CEO Pier Silvio Berlusconi said, "As of today, we cannot honestly talk about a merger, and it would be absurd to talk about a takeover bid." Since February 21, there has been competition for Silvio Berlusconi in the form of Renáta Kellnerová. The Czech billionaire holds 9.1% of the shares. Her PPF Group is mainly active in Central and Southeastern Europe and owns a number of TV stations and online media companies.
It will be interesting to see how the two major shareholders harmonize with each other. Currently, the 2022 figures are just around the corner. On March 2, the Group will open its books. Then the analysts will also be able to draw a new conclusion. There are three studies this year. Goldman Sachs advises sell, Barclays Capital advises hold, and UBS advises to buy. The price targets are between EUR 9.00 and EUR 11.00. Currently, one pays EUR 9.44 for a share certificate. With the latent takeover fantasies and the recent regular dividend, the share has further potential.
The future belongs to digital business models, especially if they are scalable. Without digitization, many companies will not be able to survive in the long run. Alibaba is number 1 in China and wants to expand. If politics no longer intervenes, the stock has a lot of room to move upward. Aspermont has successfully digitized its business model and made it scalable. Subscription figures have been rising for years, and new business areas provide further growth opportunities. ProSiebenSat.1 Media is currently struggling with the advertising environment, but as the entry of the new major shareholder shows, the Group is extremely exciting.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.