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Advertising and Digital Media sector, a thread 
The digital advertising industry is rapidly replacing existing forms of media (TV, Print) since the last 5Y, thanks to affordable internet.
India had 380 Cr Mobile internet users in 2019, slated to grow to 500 Cr by 2025.
The digital advertising industry is rapidly replacing existing forms of media (TV, Print) since the last 5Y, thanks to affordable internet.
India had 380 Cr Mobile internet users in 2019, slated to grow to 500 Cr by 2025.
Digital advertising is set to completely disrupt traditional forms of media in a decade.
India has 6 listed companies in this sector :
Sorted by market cap, it is evident that Affle has cornered the largest share.
Sorting by revenues reveals that Network18 has the largest revenues in the segment but does not enjoy the market cap that Affle does.
Sorting by profits shows why Affle attracts investors. It is able to convert and retail a larger % of its revenues into profits, which falls in the lap of their minority shareholders.
Network18, despite huge revenues, is not able to convert its revenues into profits.
Network18, despite huge revenues, is not able to convert its revenues into profits.
Affle has a profit margin of 20%.
Affle has highest return on paid-up equity and lowest debt/equity, which results in a torrent of massive FCF.
Affle's history. Pre-IPO data included (fetched it from their self-declaration to the stock exchange)
Take note : Sales have grown at a CAGR of 47% and profit has grown at a CAGR of 91% even before IPO.
Take note : Sales have grown at a CAGR of 47% and profit has grown at a CAGR of 91% even before IPO.
Affle sales and profit history :
Major operating expenses :
Affle is geographically diversified. Almost half of the revenues come from exports.
Affle converted 28M users in 2021, at an average cost of 40rs per lead.
For context, that's cheaper cost-per-lead for legitimate business conversions than the price your favorite celebrities pay for fake Twitter followers.
For context, that's cheaper cost-per-lead for legitimate business conversions than the price your favorite celebrities pay for fake Twitter followers.
Affle's management has 69% stake in the company and did not sell out despite the massive rally. It shows the management's anticipation of greater things to come in the future.
