Aspermont, Twitter, Apple - Strong numbers, strong visions and marketplace power

Aspermont reports strong results for the year ended September 2022

Bloomberg Terminal access for investors means top-notch information, up-to-the-minute numbers, analysis and forecasts. That knowledge edge pays off. That is how investors think of media company Aspermont Ltd (ISIN AU0000ASP3). The Australian company is the leading information service provider specifically for the commodities industry. In business for over twenty years, the traditional yet innovative company has achieved a digital turnaround in recent years.

Aspermont owns over 30 industry-leading B2B media brands covering the global mining, energy and agriculture sectors. Together, these publications have over 560 years of brand history and provide a comprehensive database of resource sector information and contacts. Aspermont's commercial models with a digital focus are based on paywall, high-quality content (research, data and
analytics) and digital products and services with recurring high margins and uniqueness in the marketplace.

Aspermont's total revenue growth increased 17% YOY to AUD 18.7 million. Gross profit growth wins by 15% YOY to AUD 12 million at margins of 64%. The high-margin concept is paying off.

Reported EBITDA growth increased by 40% YOY to AUD 2.3 million, at a margin of 12%. Normalized EBITDA growth increased by 41% YOY to AUD 2.8 million - at margins of 15%.
It is also a good sign that the cash balance at the end of the year was AUD 6.6 million and that there is no long-term debt. Also, net cash growth increased by 42% to AUD 4.7 million YOY. Thanks to the continuous optimization of products, and the team's dedication to digital focus, the Aspermont management team has managed to report these results. Perseverance and strategic vision are paying off.

Twitter - Musk ruffles feathers and wants to push per capita revenue

With a rather short-sighted trial-and-error mission, Elon Musk is working his way through the freshly purchased Twitter messaging service. After he laid off most of the staff, numerous users saw the end of the blue bird approaching. But with about 50 employees at HQ in San Francisco, Musk has managed to make a significant reduction in personnel costs. The platform is up and running, some criminal accounts have already been carefully removed from the platform, and soon Elon will introduce a B2C subscription. For users to receive a so-called blue tick to verify their identity, they will be asked to pay 8 USD / month in the future.

How it is to continue commercially, Musk shared in a Tweet. Of course, also with the biggest positive changes since his takeover: the number of registrations are now at an all-time high, 2 million users per day, which represents an increase of 66% compared to the week before. Hate speech is down, and after a brief uptick in fake accounts, abuse here has also decreased. The blue hook strategy will reinforce this. Even though many advertisers have bailed, Musk has a lofty goal in mind: as per a document obtained by the New York Times, Musk expects all his changes to increase Twitter's average revenue per user - a key metric for social media companies - from USD 24.83 last year to USD 30.22 in 2028. That is an extra USD 5.39 per capita.

Unless Tim Cook throws a wrench in his plans and Apple removes the Twitter app from its App Store. Buying stock is also a challenge. You can no longer buy Twitter shares (TWTR) directly on the NYSE. But going directly from existing investors through the IOB (under the symbol "0QZB") is doable. The prerequisite for this is that their broker has access to the IOB.

Apple - Sales commission for iPhone app sales brings 15-30% - Musk irritated

"Apple has also threatened to ban Twitter from its App Store, but will not tell us why," Musk tweeted. It is part of Apple's business model to charge a 15-30% sales commission on all digital goods sold through an app. According to Musk, Twitter plans to bring in billions of dollars through subscriptions like Twitter Blue - which is offered through the iPhone app. If the Company achieves those goals, Apple will make hundreds of millions of dollars in the process - due to the 15-30% clause.

If the Twitter app is withdrawn from Apple's App Store, the social network will lose one of its most important distribution platforms. Although the service is also available on the Internet, the App Store is the only way to distribute software on iPhones.

Apple stock is down 5.3% this week. The reasons include factory problems in China due to Zero-COVID policies on the ground, lower-than-expected demand for the new iPhone 14, and investors' strong reluctance to embrace Big Tech. Yet it remains the largest company in the S&P 500. Also, Elon Musk's saber-rattling about launching his own smartphone on the market if Apple shuts down the store for the Twitter app - is simply smiled away by CEO Tim Cook. Tesla investors, on the other hand, feel less like laughing. Musk spends a lot of time on the Twitter network. Trust in the CEO as a carmaker, SpaceX rocket builder and communications all-rounder is further strained.

Aspermont proves how solid digitization and lucrative business model expansion can also please investors. In its industry of commodities, no investor can pass up this pioneer when it comes to specialized information. Tim Cook also has market power with the App Store, which provides additional profits. In-app sales cost app providers 15-30% in the App Store. To what extent Elon Musk will make good on his threat to launch his own smartphone on the market in the event of a Twitter ejection from the App Store is written in the stars. In the end, it is not only strong visions that count but also meaningful financial results.