Globo has of today posted a trading update for the period ending 30/9 2013 an a defending regarding their accounting issues.
The trading update is actually really exciting because it shows that Globos growth is accelerating in a big way. The company reported growth of 30/9 2013 of 58% compared with the previus period last year. But digging deeper into that numbers it actually shows a quite impressing improvement in growth.
Globo had revenue of 50,01 mio. EUR 30/9 2013 up 58 % from 31,7 mio. EUR 30/9 2012.
In the interim report Globo said it had revenue 30/6 2013 of 32,03 mio. EUR up 52 % from 21,13 mio. EUR if 30/6 2012.
If you calculate the numbers it shows a revenue for Q3 (the period 1/7 - 30/9 2013) of 17,98 mio. EUR. That is actually up 70% from 10,57 mio. EUR in Q3 2012 (1/7 - 30/9 2012).
So the growth at Globo isnt only high, it is accelerating right now. 70% !!!!! year on year now.
On the accounting issues i think Globo did a good job to defened themselves. People an investors need to understand that Globos financial results is reported after IFRS standards and audited by an independent accountant.
Globos CitronGO! business has a really long lead time, because you first have to track the trafic, then the data provider need to get the money from the tele providor and then pay Globo. It take around 180 days.
Also projects on GO!APP development for 3. partys is capital intensive because you need to capitalize the time spending on the project and then 3-4 months before getting the payment.
But Globo will have the licensing revenue from GO!Entreprise rising in the next years, and the lead time here is much lower then the rest of the revenue streams. That will results in the average recievable dates to go down. But Globo are selling their products with distrubtors, vendors etc, so they will always have a long payment time.
but with revenue Growing, a strong balance sheet and not a big requirement for R&D spenditures in the future, the free cash flow will improve significantly...
I still have Globo as a strong buy at this levels with estimating 0,09 in EPS for 2013 growing to 0,14 in 2014 resulting in a 2013 P/E level of 6,66 and a 2014 P/E level on 4,3
The trading update is actually really exciting because it shows that Globos growth is accelerating in a big way. The company reported growth of 30/9 2013 of 58% compared with the previus period last year. But digging deeper into that numbers it actually shows a quite impressing improvement in growth.
Globo had revenue of 50,01 mio. EUR 30/9 2013 up 58 % from 31,7 mio. EUR 30/9 2012.
In the interim report Globo said it had revenue 30/6 2013 of 32,03 mio. EUR up 52 % from 21,13 mio. EUR if 30/6 2012.
If you calculate the numbers it shows a revenue for Q3 (the period 1/7 - 30/9 2013) of 17,98 mio. EUR. That is actually up 70% from 10,57 mio. EUR in Q3 2012 (1/7 - 30/9 2012).
So the growth at Globo isnt only high, it is accelerating right now. 70% !!!!! year on year now.
On the accounting issues i think Globo did a good job to defened themselves. People an investors need to understand that Globos financial results is reported after IFRS standards and audited by an independent accountant.
Globos CitronGO! business has a really long lead time, because you first have to track the trafic, then the data provider need to get the money from the tele providor and then pay Globo. It take around 180 days.
Also projects on GO!APP development for 3. partys is capital intensive because you need to capitalize the time spending on the project and then 3-4 months before getting the payment.
But Globo will have the licensing revenue from GO!Entreprise rising in the next years, and the lead time here is much lower then the rest of the revenue streams. That will results in the average recievable dates to go down. But Globo are selling their products with distrubtors, vendors etc, so they will always have a long payment time.
but with revenue Growing, a strong balance sheet and not a big requirement for R&D spenditures in the future, the free cash flow will improve significantly...
I still have Globo as a strong buy at this levels with estimating 0,09 in EPS for 2013 growing to 0,14 in 2014 resulting in a 2013 P/E level of 6,66 and a 2014 P/E level on 4,3
