Is banning chinese mobile apps will have an impact on revenues of Affle?
I am in digital marketing analytics , Factors.ai
I too have posted on Affles business model in the past n got flagged number of times.
I have my own startup and are in very similar business line as Affle.
All I can say is that if more savvy ad networks come together we can have atleast 10 Affles.
On separate note, if I were Affle i would feel extreme discomfort from such high reliance on single client. But somehow BAZAAR seems to like Amazon connection.
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Hi,
These are observations, not allegations. We may choose to study them deeper and find answers or ignore them
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Good question. I am would think they will be affected. Majority of the ad network inventory comes from Chinese publishers and at the core of it they happen to be an ad network.
They have done the group restructuring and brought all the business under Affle India as they were planning to list in India and the investors would be able to invest in the entire business through Affle India. This was the thought process behind all the acquisitions and restructuring.
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Actually they can extend this model to TV advertising, most of these TVs are smart anway and this kind of targeted advertising is on the cards for many days
Stock has had quite a runup ā¦mkt is factoring a sustainable 30%-40+ type CAGR with super long runway and quality/governance at current valuations.
While the space is extremely attractive and Soham is a great guy, valuations seems to be not in favor of risk reward IMO , also regulatory overhang of data privacy is a perpetual risk. Booked profit over last few sessions, have left some tracking positions.
With digital theme bull run intact in a market gush with liquidity, letās see how it translates to sustainable numbers in coming Qtrs, esp new acquisitions will take some time to turn around and may cap upside in near term.
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what is this MRSS ? (sorry for my ignorance, i tried but unable to find the name)
https://www.screener.in/company/AFFLE/consolidated/ Please see this link above. Against profits of Rs66crs and Rs71crs company has made CFO of Rs48crs and Rs73crs. MRSS was struggling to make CFO. But you are right one need to track receivables and CFO on a quarterly basis
Kotak AMC reached out to Affle on this query
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=4e0d8715-9ed8-494a-aa33-7b90b9edc2e3
Response :
https://www.bseindia.com/xml-data/corpfiling/AttachHis/25568e42-75fb-4d51-9ff3-4395e4581b1b.pdf
Can some experts shed some light on this and enlighten us ?
Disc: Holding very tiny number of shares (Scared of the exponential rise)
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Was unable to tune in to the AGM
Updates from those who did?
This is from annual report of ļ¹°Affle. Here I get 71% of networth as goodwill plus other intangibles and 48% of networth as goodwill. This in I think a big red flag. Views invitedā¦
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Most of this is software costs and software development costs which is higher than hardware costs. Have highlighted this in my previous post. Of course I was talking in terms of gross fixed assets and you have highlighted net fixed assets.
"Company gross block of computers is Rs158.6 lakhs end FY20 and Rs90.6 FY19 which will be the cost of buying the computers. The net block post depreciation (If I am not wrong they are depreciated in 3 years) value is Rs75.2 lakhs end FY20 and 53.4 lakhs end FY19.
Total number of employees end FY20 is 295. Rs158.6 lakh/ 295 is Rs53,762 per computer which is a very decent price per computer.
Please note the cost of computer software (amortised over 5 years) is seperate at Rs251.2 lakhs end of FY20 in intangible assets. Also note there is software application devlopment in Rs2525.6 lakhs which 10x of computer software."
They have also made acquisitions which is why there is goodwill on the balance sheet.
I dont think there is anything sinister here.
This 71% is very high when compared to other IT players (although I know that they are not exactly comparable). The real trouble will start upon impairment of this goodwill. And a company making too much aggressive acquisitions is a bit risky.
Views Invitedā¦
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Any VPians attending tomorrowāshttps://www.bseindia.com/xml-data/corpfiling/AttachLive/be616de3-0607-4ccd-a330-46551cde07d4.pdf to AGM ?
Affle investee co:
https://www.fyber.com/upgraded_guidance_for_2020/
Fyber is in Video Programmatic advertising and has a market cap of 120 Mn Euros and Revenue of $ 130 Mn Euros. But not profitable.