Pilat Media Global Share Discussion Threads

[spooky] 30/5/2013 08:25

It all looked pretty good to me, i particularly liked the statement about OTT 'the Board expects that OTTilus will start making a contribution to revenues in the latter stages of the current financial year.' When we hear about the first contracts in this space i think it will mean a step change for the company share price.

[paulypilot] 30/5/2013 08:12

Morning,

I read the Q1 statement positively - they're generating stronger Gross Profit, the outlook is very good, cash up yet again, and this time they mention looking at best thing to do with the surplus cash - so maybe buybacks or special divi in the pipeline?

For anyone interested, my more detailed comments are in this morning's report:
http://tinyurl.com/pnkl4ob

Regards, Paul.

[rmillaree] 30/5/2013 07:41

Yet again a very underwhelming set of figures for PGB although q1 has always tended to be pretty quiet I think.I do continue to hold though.

[paulypilot] 29/5/2013 12:58

Techno,

I totally agree, this stock is still far too cheap, based on its strong trading & balance sheet stuffed full of net cash.

Thanks for the heads up on results being due, I will include those in my morning report on Stocko.

Cheers, Paul.

[techno20] 29/5/2013 12:03

Expecting Qtr1 results out tomorrow (or possibly Friday). IMO these will see strong progress and will be accompanied by a very positive trading statement.

This should precipitate the next step up. They are way too cheap at the moment.

Techno

[techno20] 26/5/2013 06:40

The issue I\'m intrigued about is the cash position. Suspect this is now north of £12m but they\'ve gone very quiet on what they plan to do with it.

Hopefully some news in the next week.

Techno

[yump] 24/5/2013 21:00

Nicely spotted thanks for posting and 50p does seem an obvious target both on the chart and if you stick a few reasonably modest growth figures in.

[techno20] 24/5/2013 20:56

More good news posted yesterday on the website (below). Still think this will power through 50p in short order. Should see qtr1 results out next week....


LONDON - May 23, 2013 - Pilat Media today announced that Encompass Digital Media Asia, one of the world's top digital media services providers and a leader in global satellite and terrestrial connectivity, has launched a value-added service for its clients using Pilat Media's IBMS Express Software-as-a-Service (SaaS) platform. IBMS Express is a modular and scalable entry-level business management system for broadcasters, based on Pilat Media's industry-leading broadcast management solutions.

"Encompass, together with the digital media industry, continues to grow rapidly in the region and we recently announced the origination and transmission of 100 channels from our Singapore facility," said Deepakjit Singh, managing director, Encompass Digital Media Asia. "We are very excited to deploy IBMS Express to make it simple for our users to add channels and services, and bring new operational efficiencies to their operations as their businesses expand."

Encompass Digital Media Asia provides an international teleport and the full range of playout, master control, media management, and global archiving services. With its new broadcast management service based on IBMS Express, Encompass is offering its clients three operational models: a fully managed service in which Encompass provides all staff and performs all data entry, scheduling, reconciliation, and other business management tasks; a dry hire service in which Encompass provides access and 24x7 support, but the client performs all business management tasks; and a hybrid service in which Encompass and the client jointly handle business management tasks and Encompass provides access and 24x7 support.

"The new IBMS Express-based service will enable Encompass and its clients to operate more efficiently and profitably, with staff focused on value-added activities across the broadcast operation chain," said Fabrice Beer-Gabel, senior vice president of sales and marketing, Pilat Media. "With a growing channel footprint across the region, Encompass Digital Media Asia is a powerhouse for a wide range of critical media services. IBMS Express will be key to the success of such an operation, giving it the ability to remain efficient and generate revenues while dealing with increased workloads, more services, and a growing number of clients and channels."

IBMS Express can be quickly deployed to address the full range of business management functions including scheduling, media, airtime sales, traffic, and reporting for linear and on-demand multiscreen services. Deployed as an SaaS to minimize IT investment and maintenance, IBMS Express is offered with a "pay-as-you-grow" pricing model. IBMS Express is designed to be easily configured and ready for use in a matter of weeks, with Pilat Media's professional services team providing configuration, training, and ongoing maintenance of the live system.

[techno20] 22/5/2013 13:14

Moving up steadily, but still plenty more to go.

Strip out the cash and the p/e's around 8.

Suspect we'll see forecast moved up following the qtr1 results which should be out by the end of the month.

Techno

[alter ego] 22/5/2013 10:39

yes, good contract win. Puts any lingering doubts over dispute with Fox firmly behind them. Originally bought PGB in 2010 on grounds that there was hidden value that would be outed by a bid from Eurocom or Sintec but still waiting for one of them to move. Perhaps this will turn out to be a decent investment on its ability to generate earnings.

[spooky] 22/5/2013 10:38

What i'm looking for here is some positive news on the OTT side of the business, if we get that i think the shares will really move.

[paulypilot] 22/5/2013 10:22

Indeed, a good announcement.

Update on PGB here, for anyone interested:


Regards, Paul.

[yump] 22/5/2013 09:55

That's a proper significant deal - very nice and all the more important because a lot of PGB's revenue is repeat fees, so perhaps the long hoped for permanent annual increases are going to start happening. That would really move the share price as the rating would rise with the earnings.

[techno20] 22/5/2013 07:13

Time for lift off!

Looks like the biggest deal for some time and revenues into this and next year.

Time to break through 50p.

Techno

[paulypilot] 18/5/2013 14:59

Hi Techno,

I agree, the valuation here looks bonkers cheap!
About half the market cap is genuinely surplus net cash - i.e. not the usual up-front payments from customers, and you can see how it has built up over the last 4 years from the historic numbers. So a real cashflow machine. There's also plenty of additional working capital too, e.g. debtors & work in progress.

The business itself seems to be firing on all cylinders too.

I can understand how the market doesn't like;

1) Two dominant shareholdings & lack of liquidity,
2) Israeli aspect of things (dubious country business practices, dual listing, etc),
3) Lumpy sales,
4) Nasty debtor write-off in 2011 - unnerving, lack of adequate financial control.

Having said that, the discount to intrinsic value looks to be pretty extreme, and more than covers those concerns.

Also, I know someone who knows management, and says they are straight.

The big question will be what do they do with the cash pile? Would be good to see either a shareholder distribution, tender offer, buybacks, or use it to clear out one of the big shareholders perhaps, thus boosting EPS?

They really should be paying dividends every year - I would suggest a policy of paying half EPS out in divis, and that would certainly be a tremendous catalyst for a higher valuation.

In the meantime I'm happy to wait. Got in at around 33p, and I see considerable upside here. Intrinsic value looks to be around 60-80p in my view.

Regards, Paul.

[techno20] 18/5/2013 10:21

Good to see the share price inching up this week ahead of the qtr1 results, which we should see before the end of the month.

Given work is now underway on the Starz deal and the "global media co" deal announced in Oct - which together are worth c.£6m - the comparable vs 2012 qtr 1 should look good.

This feels ready for the next leg up and with c£12m in cash, there's still 50% further to go IMO.

Techno

[adamb1978] 22/4/2013 15:07

Yep - obviously looking at net rather than gross cash. About 44% of the mkt cap - would be good to see them returning capital rather than earning a fraction of a % on it (and it declining in real terms)

[briangeeee] 22/4/2013 14:57

I think the loan (currency hedging) is secured against cash just because the cash happens to be there. If they were able to use the cash in a highly value enhancing manner, like a buyback, then the currency risk could easily be hedged in another manner. Also, bear in mind what's net cash.

[adamb1978] 22/4/2013 14:22

Just having a look through Pilat for the first time.

Regarding the cash pile, am I right in thinking that the only reason they're sitting with so much cash is that the term loan is secured against c.£7m of it? Therefore when the loan gets repaid at the end of the year, whilst it eats up some of the cash all the remaining cash is unrestricted and therefore able to be used for M&A/retrn of capital etc?

Thanks

[fse] 10/4/2013 22:12

Not been following Pilat recently but used to have a pretty large holding here. Decided to part with it to invest in something that was more imminent at the time but hated to part with the shares as I always felt Pilat would get there in the end.
Recent news looks exciting and they very well could substantially outperform from here. Wish I had some funds to re invest but back on my watch list.

[techno20] 10/4/2013 21:53

Thanks KayHa2 - just got around to listening to the interview.

Very upbeat - clearly pretty confident of closing a couple more deals, which should act as the catalyst to further upside.

Think Avi mentioned £12m in cash, but once again nothing said in terms of what they are going o do with it!

[paulypilot] 08/4/2013 12:01

Thanks for the link to interview.

I found his accent a little difficult to understand in places, but just had to concentrate harder!

Very interesting comments near the end about the outlook, which sounds very positive. Shares look good value to me, although I'm not keen on the dual listing.

Regards, Paul.

[kayha2] 08/4/2013 10:25

Found an interview with Avi here, discussing the results:

[woodcutter] 05/4/2013 16:40

Techno, yes still in lrm too but will leave the party if we don't see meaningful results, see you over there then.

[spooky] 05/4/2013 08:57

Any news on OTT and these will really move that's for sure.