BROKER NOTE7 Feb 2021 20:45
I see there was a leaked Arden note doing the rounds from their latest broker note in October with a recommended price of 20.3p. Management plans to expand the offering to include the following, for no additional charge beyond the current subscription rate: Education and learning – primarily music skills;Exclusive artist content – interviews, backstage, etc.Short form episodic content – reality through to scripted;Documentaries; and Music feature filmsThe group’s priority into FY21E is to complete the integration, create and launch the new combined app and manage its user base. The group will aim to retain Napster’s 1.1m subscribers (and incremental users affiliated through B2B channels) while converting MelodyVR’s c.325k users into subscribers on the new platform. The launch of the new app is slated to occur in the autumn of 2021, providing time to complete the significant number of internal workflows. Thereafter, growth-oriented marketing spend is expected to grow the user base to approximately double the user count into FY22E. This will coincide with the group expanding its operating footprint into new geographies, targeting a total of 33 countries. Post-launch, the group plans expansion into the likes of Australia, South Korea, India and China.