Have a read the below report from Bell Potter - this is clearly a time to buy some more.
Full year result forecast $18.8m, EPS 6.8 cents Despite the economic slowdown, MCU is set to report a staggering +40% EPS growth when it reports its full year result on 27 August. Strong growth from online advertising division emitch and Stadia Media’s sports ground advertising is likely to underpin the result. Continued above system advertising growth MCU appears set to continue its trend of delivering above system advertising growth. We expect EPS growth of over 40% to be delivered by a combination of online billings growth (~50%) against online ad growth of (~30%) and Stadia Media’s AFL contracts for the MCG and Telstra Dome up 105%. While the headline growth rates in billings will more than likely appear outstanding, in the half year result management failed to clearly delineate between organic growth and growth from the inclusion of several acquisitions made during 2007. Even including the acquisitions, management is still targeting an impressive 20% increase in gross group billings over FY08.
MCU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
