Net Insight
Net Insight - ABGSC Investor Days feedback (ABG Sundal Collier)
2019-12-05 12:08
Interim CEO Anders Harrysson presented today
Favourable market trends should drive profitable growth
Expect news around ScheduALL and Sye in H1’20
Favourable market trends support further growthInterim CEO Anders Harrysson today presented Net Insight at ABGSC Investor Days, highlighting that the company is addressing the broadcasters need for high quality and high speed media transportation. Focus was around the business area Media Networks, or the Nimbra product, that addresses media transportation related to live events. Anders showcased the degree of importance Net Insight’s products had for SVT in the winter of 2019 live casting the World Ski Championships in Åre/Östersund in Sweden to more than 1 billion viewers worldwide. This was made through remote production, the largest of its kind ever. The need for high quality and reliable media transportation should increase as live content distribution grows, a clear trend in the market. Nimbra reached an EBIT margin of 20% in the last year, and the company expect the recent slow growth (slightly negative FX adjusted) to bounce back to positive growth in 2020 and beyond.
Expect imminent news
Net Insight acquired ScheduALL in 2015, which has since then been a disappointment turning into losses. Net Insight also invests in its streaming solution, Sye, that gained market traction during 2019 (Swedish Primetime the first client), and with a signed contract with a Fortune 500 client in the US, with expected launch in 2020, we estimate to see a ramp up of growth in 2020e. Net Insight has communicated that it will give more details about strategic reviews for both ScheduALL and Sye around either the year-end (14 Feb) or Q1 (22 Apr) report.
Trades at 2x EV/Sales
As the company stands today, it has no need for capital injection, according to Anders. Based on the outcome of the two strategic reviews it is currently undertaking, we expect to get a clearer picture of the future capital structure in the coming two quarters as w
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