Market's view on Zinc Media
Published on April 2024
- Stock watchers noted that despite some new businesses showing growth, they remain unprofitable, which suggests other revenue streams may shrink, leading to broadly unchanged total revenue. They also mentioned the unpredictable nature of business causing variations in revenue, with hopes that significant opportunities in development could exceed market expectations by year-end.
- Concerns were raised about the company forecasting no revenue growth, instead relying on higher margins and cost-cutting to generate profit.
- Positive feedback was given for a market forecast suggesting a profitable bottom line, and the mention of potential additional acquisitions to scale the business was highlighted.
- Disappointment was expressed regarding another operational loss despite positive business developments, highlighting a need for the company to focus on organic growth and managing costs to achieve a headline profit.
- The financial results showing net cash and improvements in cash position were viewed positively, although concerns were raised about weaker revenue and advanced bookings compared to the previous year.
- Questions were raised about executive compensation, suggesting skepticism about the alignment between management pay and company performance.
- The company’s participation in investor events and webinars was noted, suggesting an attempt to improve investor relations and confidence in the company’s growth trajectory.
- Recognition of the company at industry awards was mentioned, although it was noted that such accolades don’t significantly impact the share price.
- Discussions on cash reserves and profitability were mixed, with some optimism about financial discipline potentially leading to favorable outcomes for shareholders, while others expressed concerns about the management’s focus on personal gain over shareholder returns.