Destra is a company in transformation. Management is returning to its original strategic focus of delivering music content and advertising online. The recent acquisitions of offline music channels strengthen the company’s position as the largest independent record label in the country and underpin its consolidation and growth in the online environment. Destra’s media strategy appears to have the ability to replace web hosting revenue if the company sells the web hosting assets. The web hosting business is maturating it is a good operation, but has high maintenance costs. The company recognises that more value can be extracted by selling the business and reinvesting the funds into the media business. We recommend Destra as a SPECULATIVE BUY.
DES Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
