I think the future is in there pure internet services, granted.
I think they see iTunes as a great danger to the music side, hence the AEM deal giving the Destra Music full rights to Fable Records' full library, smart move however may have limited scope. Dropping the price on downloads at the moment emphasis' that. They need to do a deal with iRiver for a plug and play type music player intergration deal.
On the numbers side I think the growth will be small, maybe 25%-50% increase in NPAT, sounds like a lot but your only talking $150,000 - $200,000.
With a projected EBIT of $1.2mil I think they are at or around value.
regards.
DES Price at posting:
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