Leading market intelligence company iSentia Group Ltd (ASX: ISD) has beaten its prospectus forecasts, continuing its impressive performance since floating on the ASX via an initial public offering (IPO) in June 2014.
Here are the highlights from the group's recent full-year results:
- Revenue increased 15% to $127.3 million (beating prospectus forecast by 2%)
- Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 38% to $42.5 million (beating prospectus forecast by 3%)
- EBITDA margin increased from 28% to 33%
- Underlying net profit after tax before amortisation increased 44% to $27.4 million (beating prospectus forecast by 1%)
- Average revenue per customer (in Australia and New Zealand) increased 14% to $31,395
- Full year dividend totalled 6.9 cents per share
Acquisition:
In conjunction with the release of the group's profit results, iSentia also announced the acquisition of "leading content marketing company King Content." Commenting on the purchase, management stated that King Content will further diversify the company's services and further increase its global presence.
What's next:
With iSentia's share price soaring from a float price of $2.04 to $3.46, IPO shareholders have enjoyed gains of close to 70% in just over one year! With the share price having rocketed, some investors may question if they are too late to buy…
The official company guidance for financial year 2016 is: "high single digit organic growth and mid-teens organic EBITDA growth. King Content is expected to contribute an increase of circa 10% to iSentia's consolidated FY16 revenue and be EPS accretive in the high single digit range."
With the stock trading on a forecast (according to data supplied by Morningstar) 2016 financial year price-to-earnings ratio of 21 times, investors are definitely paying a full price for iSentia's stock. However, given the growth profile and quality of this business the price may be justified.
