April 11th, 2022 | 18:54 CEST
TeamViewer, Aspermont, ProSiebenSat.1 Media - Which digital company shares have the greatest potential?
Table of contents:
TeamViewer - Quarterly figures due May 4
TeamViewer had already focused on a digital business model from when it was founded in 2005. The vision consisted of global online collaboration and remote support. With the outbreak of the Corona pandemic, the Company was in focus as companies transitioned to home offices and sought solutions for that area. The stock shot up until June 2020, but the uncomfortable times then began for shareholders who had bought too late. After an alleged expensive takeover and a high-dollar advertising deal with Manchester United later, the share price is lower than before the Corona breakout.
Management has admitted mistakes and wants to do better in the future. The 2021 numbers are decent if you do not count the two forecast cuts. Billings grew 19% YOY to about EUR 548 million. The adjusted EBITDA margin was 47%. Acquisitions have expanded the portfolio, and strategic partnerships are expected to help with future growth. For the current year, management targets billings between EUR 630-650 million. With the annual figures, the Company also simultaneously announced a share buyback program of EUR 300 million or around 10% of the shares.
Up to and including April 1, 10.73 million shares were repurchased for around EUR 152.2 million. As the Company has already started to cut costs in 2021, earnings should continue to rise. Nevertheless, sponsorship continues to weigh on profits for the time being. Interested investors will learn how the Company has started 2022 on May 4 when the first quarterly figures are announced. Since December, the share has remained in a wait-and-see position and is currently quoted at EUR 12.87. The share price will need positive impulses for higher prices.
Aspermont - Live events are back
Until a few years ago, Aspermont was a publishing house. As with many print media, sales declined, and so the Company began to make a disruptive change to its business model back in 2015. Under the project name "Horizon," it started its digital transformation into a media platform that forms the basis for the Everything-as-a-Service (XaaS) model. Nowadays, this not only reaches end consumers but can also offer a wide range of services to the B2B sector. The record figures for 2021 show how well the Company is doing operationally, even though Corona has brought offline areas such as trade fairs to a standstill.
The first quarter was convincing with further growth, and sales climbed by 10% to 4.2 million Australian dollars (AUD) compared to the previous year. XaaS grew by 18% to AUD 2 million. Gross profit increased 25% to AUD 2.8 million, thanks in part to higher gross margins of 68%. On March 8, it was announced that the Company's agricultural subsidiary, Kondinin Group, was awarded AUD 2.3 million in grants from the Minister of Agriculture. The money will be used to implement the drought resilience program for agricultural research. At the end of March, it was announced that the Company would resume hosting live events with immediate effect. It started with the Futures of Mining (FOM) in Sydney, which will bring more than AUD 1 million into Aspermont's coffers.
More events are planned, such as FOM in Denver. Last year saw the launch of the sustainability web platform. This year, the Company is set to launch its fintech division. In doing so, the Company will help commodity companies raise fresh capital. Due to the excellent network, which has been built up over decades, one can expect great potential here. A detailed analysis of the Company can be found on researchanalyst.com. Since October, the share has been running sideways and is currently quoted at EUR 0.014 in Frankfurt. The analysts at GBC see a price target of EUR 0.07.
ProSiebenSat.1 Media - Strong dividend
ProSiebenSat.1 Media (PSM) is more than just a TV station family. The Company is consistently driving forward the dovetailing of television and the Internet. Through a wide variety of online businesses, it diversifies its business model and simultaneously digitizes itself. PSM is exceptionally well-positioned in the dating market. There, one hears again and again about a possible IPO of the dating division. That would bring additional capital into the Company's coffers. But the Company has also built up an exciting portfolio in other areas. These include Verivox, Aboalarm, AboutYou, myToys, flaconi, Jochen Schweizer and many more.
The model is successful, as impressively demonstrated by the 2021 annual figures presented on March 3. The Group generated record revenues of around EUR 4.5 billion. Advertising revenues were above the level of the pre-crisis year for the first time. Adjusted EBITDA was 19% higher than the previous year at EUR 840 million. Of particular interest to shareholders is the proposed dividend of EUR 0.80 per share. For the current year, management expects roughly the same figures as in 2021, but they want to grow 4-5% per year in the medium term.
A new technology could help with this - the marketing subsidiary Seven.One Media has developed the addressable TV spot, making it possible to broadcast two commercials for different target groups. For example, one spot for women and one for men. The technology is patent-pending throughout Europe. The share has lost more than 30% at its peak this year, with the lowest point reached at EUR 9.69. The share is currently trading at EUR 11.10. That puts the dividend yield at 7.2%, provided that the Annual General Meeting on May 5 accepts the EUR 0.80 dividend. In addition, there is a latent takeover fantasy, as Silvio Berlusconi's Company Mediaset holds over 23% of the shares.
Well-designed digital business models will bring nice profits to shareholders in the future. Aspermont currently has the greatest potential, as two more business units can take off there this year and thus, another record year can be expected for the Company. In second place is ProSiebenSat.1 Media, which pays a high dividend and is diversified. In addition, Mediaset could make a takeover bid. TeamViewer is still suffering from the Manchester United deal in the years to come. Subsequently, profits should start to bubble up again. Until then, the potential is limited.
Conflict of interest
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