TeamViewer, Aspermont, ProSiebenSat.1 Media - Digital business models booming

TeamViewer - Is the turnaround coming?

TeamViewer was the rage among investors with the first lockdown in the Corona pandemic. Homeoffice workstations were needed, thus video conferencing, remote maintenance of PCs, etc. All of this is no problem with the TeamViewer solution, and accordingly, the share price rose from EUR 22.30 to EUR 54.86. But as the stock soared, problems began to arise. Ubimax, a specialist in augmented reality, was acquired for a price that was too high. Subsequently, a 5-year sponsorship contract with Manchester United was signed, which should cost between EUR 35 and EUR 50 million per year.

It was of no use that the CEO admitted mistakes afterward. The share went on a downward slide, as results suffered significantly from the expensive deals. Even though 18% more annual contracts were signed in the third quarter, management's forecasts were missed. In the future, management should instead calculate more conservatively and surprise positively. The chief financial officer and chief marketing officer are no longer on board in 2022. CEO Steil has a new contract in his pocket until 2024. The coming year will show whether lessons have been learned from this year.

Should Corona cause another mandatory home office, this would certainly help the Company. The corporate business should bring growth in 2022. The share has been stuck in a range between EUR 12.785 and EUR 10.715 since November 26. Currently, the stock is trading at EUR 12.27. Analysts are divided. While DZ Bank sees EUR 13.50 as the price target, JP Morgan assumes EUR 21. The Company will have to tighten its belt in the coming years.

Aspermont - Convincing figures

Aspermont did not just start transforming its business with the onset of the Corona Crisis because the Internet was increasingly taking customers away from print media beforehand. The former print media publisher, which also organized trade shows, became the leading media service provider for the global commodities industry. This transformation was achieved by restructuring and digitizing all business structures, forming the basis for the scalability of the business. The Company was able to expand its online businesses significantly last year.

The first to be introduced was a Virtual Events & Trade Shows solution. This was followed in June by the new "Digging For Climate Change" platform, which deals with sustainability issues specifically in the raw materials sector. There, companies can exchange ideas and develop solutions together. Most recently, the Company announced it was entering the fintech business by helping commodity companies raise capital. However, this platform is expected to launch in 2022. All three areas promise additional revenue, in addition to the standard subscription model, content marketing for commodity companies and the Everything as a Service (XaaS) platform.

The fiscal year already ended on September 30, and the numbers were impressive. EBITDA was up 288% YOY, despite revenue being up only 6%. The margin also climbed by 10%. The XaaS division can look back on 21 straight quarters of growth. The CEO hopes for live events in 2022 and expects above-average growth as a result. Surprisingly, however, the stock is yet to gain momentum despite the promising operational developments and remains in its sideways phase between AUD 0.02 and AUD 0.027.

ProSiebenSat.1 Media - Is the takeover coming?

ProSiebenSat.1 Media (PSM) has been trying to integrate TV with the Internet for some time. To this end, the Company invests in Internet holdings and then advertises them on TV. In September, it acquired The Meet Group and the Lovoo dating platform. In December, SAT.1 aired the show "Love at First Kick - The LOVOO" and "Jochen Schweizer Extreme Dating Show". Jochen Schweizer's experiences are also in the Group's portfolio.

The Company has a strong presence in the online dating market, and an IPO of the dating division is planned for 2022. It could significantly boost ProSiebenSat.1's valuation. All these digitization steps have not gone unnoticed by Mediaset, which is owned by Berlusconi. Mediaset has been buying shares in PSM for some time and now holds over 23% of the shares. At the end of November, there is said to have been a meeting with Werner Brandt, the head of PSM's supervisory board. The Italians are reportedly dissatisfied with the management of the Group.

The conflicts have been simmering for some time and could reach their climax at the next Annual General Meeting. Berlusconi probably wants to put his own Supervisory Board members up for election. More details will be known in May 2022. The share, which climbed from EUR 13.80 to EUR 19.00 at the beginning of the year, is currently trading at EUR 14.04. For shareholders, this means a disappointing year. Perhaps there will be a takeover bid next year when Mediaset increases its stake to 30%.

All three companies are well-positioned in the digitization space. TeamViewer needs to turn off management mistakes to turn the tide. Aspermont has transitioned from a print medium to a global media group for commodities and can further expand its reach through additional languages. ProSiebenSat.1 Media is trying to bring TV and the Internet together. But the big breakthrough is still a long time coming.