(draft from April 17 2016 that I decide to publish now in October)
Summary Investment Thesis
- Fast growing (85% subscriber growth last year).
- Steady revenue stream
- Platform type business model can create virtuous circle. I.e. comparable to Netflix, HBO.
- Low visibility due to: Non-regulated list, Reverse Merger listing, Prime target group (middle age women) doesn’t correlate strongly with small cap stock picker demographics.
- CEO and his wife are big shareholders (total 20+%) and likely most of their wealth in the company.
- Apart from Amazon/Audible (english) the competition seems limited in local european languages.
- Unlimited listening for $20/month is a better value for the customer than Audibles which charges per book.
- Long run-way left with growth just from current markets.
- Move from print books to audio is slower than expected.
- Usurped by a better offering. E.g. Amazon expanding or other major book retailers getting better at audiobook distribution. Examples in Sweden are BookBeat (Bonnier).