Spectrum Interactive Share Discussion Threads

[tonyx] 18/10/2006 07:33

outsider,

Excellent stuff! Should be a good day.

[outsider] 18/10/2006 06:57

Colin Hargrave, Managing Director, UK Airports BAA, said: with demand for internet services at our airports increasing rapidly

[outsider] 18/10/2006 06:55

PRESS RELEASE

BAA award seven airport Internet Kiosk contract worth £5M to Spectrum Interactive plc




BAA, the world's leading airport company, has awarded a new seven airport internet kiosk contract to Spectrum Interactive plc, estimated to be worth £5m, following a competitive tender process. Spectrum already operates over 200 internet kiosks within the BAA estate and also provides payphones to each airport. This new contract will commence in 2008 and extends the company's leading position in the UK airport market through to 2011.

Importantly, the agreement also includes rights to install new units into Heathrow Terminal 5 which opens in March 2008. Terminal 5 alone is expected to service around 30 million passengers per annum by 2010.

Mark Lewarne, CEO Spectrum Interactive commented, "We are absolutely delighted to have been awarded this prestigious contract. BAA is a long standing Spectrum partner, and we have worked extremely hard to offer a superb package of good design, service and operational support to suit the demands of some of the busiest airports in the world. Securing this contract and extending our relationship with BAA into Terminal 5 allows Spectrum to invest further in new design and product features. We look forward to a long continued association with our partner BAA."

Colin Hargrave, Managing Director, UK Airports BAA, said: "BAA is committed to offering the very best airport experience to passengers, and we demand the same approach from our partners. Spectrum has always been a strong partner with superior levels of service, innovation and marketing initiatives, and with demand for internet services at our airports increasing rapidly, we are confident that Spectrum is ready to meet these challenges and further develop this growing market."

Commenting on the design of Spectrum's latest internet areas Mark Lewarne added, "This is a very significant win for Spectrum, and it indicates that the company has got the right blend of product, design and operational experience. The award of Terminal 5 is particularly exciting. BAA demanded only the very best partners for this project, and Spectrum's new T5 designs had to meet and exceed BAA's expectations. We'll be setting new standards of design and service features for T5, which will be a benchmark for future airport installations."

[papalpower] 17/10/2006 21:59

Another nice day today then :)

[outsider] 17/10/2006 10:59

Yes space hit 4.5p up this morning but maybe some profit taking to take it back to just 2.5p up, but the trend is clear.

[spaceparallax] 17/10/2006 10:39

SP looking very healthy just recently.

[flateric] 17/10/2006 10:10

Snapshot just now... it carries on.

[wiganer] 17/10/2006 09:07

dell

The first key question about the payphone business is, are the recent revenue declines going to continue, accelerate, slow, or reverse?
My view is that they will slow, as they were distorted by the mobile phone price slashing in Germany. As Outsider points out, there is already some evidence to suggest this has already started to happen.

The second key question, is, will the payphone revenues continue to cover costs. My view is thayt they will, for some time to come, and may even do so indefinitely, especially if SIn continue to develop their kiosk advertising.

Overall, therefore, my view is that we have a solid, albeit gently declining cash cow payphone business. Just the kind of business that the market often undervalues (Graham/Buffett highlighted this).

The third key question is then about the rate of growth of the internet side of the business. Time will tell on that- it may turn out to be explosive, or a damp squib.

It's actually the internet side of the business that is in my opinion the potentially bearish side of the equation (if growth doesn't turn out to be as aggressive as hoped for) not the payphones.

[chesty1] 17/10/2006 09:02

Well I only noticed these yesterday as they were posted on the Sharecrazy thread & it to me looks like a sreamin buy & a very well done to all who did.

Be lucky to all & enjoy the rise...!

[outsider] 17/10/2006 08:54

Well I can only point you to the 143% increase on turnover up 124%

Also I can say the slowdown halted in the second half re payphones down from 20% to 17%, but that's misleading, because payphone turnover overall, was only down 6% at intermis that's the key figure & probably 5 or 5.5% at finals, because Spectrum are quite successful at arresting the payphone decline, with Microcells, ATM's advertising, (up 32% year on year) Wi-fi etc in payphones.


Furthermore check the news last three months, see if it's continuing, check the 80 internetr terminals per months & 10 Hotels wired per month, what do you think?

[dell314] 17/10/2006 08:50

Outsider - Your points are quite valid but my understanding is that the lion's share of SIN's turnover and profit currently comes from a business in decline.

That decline is continuing, so the question is, can the new business, that you refer to, generate earnings faster than earnings from the old business declines?

All IMHO, DYOR etc.

Rgds
dell

[outsider] 17/10/2006 08:47

I will say this as well, this share was around 90p/£1 at IPO institutions invested at that price & saw the potential.


But........they had problems with their ATM's as in planning permission, and indeed payphone usage went down a striking 20% at first interims after showing very steady decline before (see prospectus graph)


Not wholly the managements fault, but now I think investors can see after the hiccups that management are starting to realise some of that earlier potential when the company first came to AIM.

[wiganer] 17/10/2006 08:44

Make that 3.5p up.

[outsider] 17/10/2006 08:41

dell the market is telling me maybe some people picked up the phone and asked the company why the figures were as you reported. perhaps they did their research?


The market is also telling me, that investors are seeing the huge potential of the interactive side.

Hugely profitable, got nearly all the UK airports, doesn't that tell you something about the management?


They haven't even scratched the surface of Germany yet with interactive, or the rest of Western Europe for that matter, huge potential.

Also some very big hotel chains seem to prefer Spectrum, what does that tell you too?

[outsider] 17/10/2006 08:37

hedgehunter

Yes he's right about the figures, but the costs have been cut to match to maintain a similar margin, check the payphone turnover. Also as I said before German operation made a difference. that can have quite an effect if turned round.


No real target as such Roger but, at 50p the prospective p/e is only 8.4

[dell314] 17/10/2006 08:36

Outsider - It's telling me that there are people out there who take broker forecasts at face value. Just like they did with Seymour's EVS and YOO forecasts..
What's the market telling you?

Rgds
dell

All IMHO, DYOR etc.

[outsider] 17/10/2006 08:35

make that 2.5p

[hedgehunter] 17/10/2006 08:34

Dell may have a point about the 2nd half performance and to some degree I was also a little phased by the broker numbers but as outsider says if they come in a full 1p under the Broker figure the stock still looks very cheap indeed.

Nice to see the rise up this morning.

Any target price set Outsider?.

[outsider] 17/10/2006 08:31

+ 1.5p now dell, what's the market telling you?

[outsider] 17/10/2006 08:30

Yawn


Debate already done.

[dell314] 17/10/2006 08:29

Outsider - "You keep saying it dell & the price keeps going up".

I'm just a small voice compared to the likes of Seymour and Watshot but I think a cynical view of what the broker is saying is prudent until there is some evidence that their numbers are acheivable, as they are clearly in marked contrast to the poor figures of the 2005 H2.


"I have explained my views in earlier posts".

You seem to be quite happy to repeat your views.
I think it's worth repeating the information about how poor SIN's figures were for the last reported six months. If you remember we were talking about circa 1.27p retained earnings for the six months after generously adding back in the exceptionals, assuming no amortisation/impairment and applying a 20% tax charge...

All IMHO, DYOR etc.

Rgds
dell

[outsider] 17/10/2006 08:14

You keep saying it dell & the price keeps going up.

I have explained my views in earlier posts.


Even if forecasts aren't met, these shares are not expensive, as investors are realizing.

Prospective p/e at 37p is 6.2

Even If they hit 1p less eps it's only 7.5.

The interactive side is the future & their profits were up 143%, despite heavy capital investment.

[dell314] 17/10/2006 08:11

Must be a few people around who actually believe Seymour's forecasts then.
How bizarre.

Are they really convinced that the circa 60% drop in earnings from H1 to H2 is going to miraculously reverse?

Rgds
dell

All IMHO, DYOR etc.

[outsider] 17/10/2006 08:05

moving up with an earlier start today :-)

[outsider] 16/10/2006 13:03

Yes well done to you too, bought at some good prices tony.

thx FE what do the signals mean? buy?