We reduce EBITDA forecasts, updating for last November’s trading statement and the September 2016 acquisition of Dot Property. This is not a reflection of Mitula Group's (AX:MUA) operational performance, which continues to progress to strategy, but of additional investment in its self-serve platform, expansion into the fashion vertical and the strengthening of its market capabilities. Mitula is growing strongly, enjoys high EBITDA margins and is well financed. The 40% EV/EBITDA discount to its peer group average deserves investor attention.
Considerable operational progress during 2016
Mitula continued to be very active during H216. It launched an additional six sites in three new countries, expanded beyond property, employment and motoring with the launch of its first fashion vertical in Spain, and made its second post-IPO acquisition with Dot Property in September 2016 for A$11m in cash and shares. It has also continued to develop its sales initiatives both by adding to its direct sales team and via the launch of a self-service offering to enable click packages to be bought directly, potentially widening its reach to smaller portals.
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