Frost & Sullivan Publishes Annual Update on Vonetize

Summary of Highlights       Summary of Highlights       The company presented a plan to increase efficiency with signs already visible in the fourth quarter report; working to increase the number of users, mainly inBrazilandRussia ; target price unchanged. The company is in a streamlining process in which revenues have not yet improved, but expenses have decreased significantly and liquidity has improved: Vonetize is in the process of significantly increasing efficiency...

Summary of Highlights      

The company presented a plan to increase efficiency with signs already visible in the fourth quarter report; working to increase the number of users, mainly in Brazil and Russia; target price unchanged.

The company is in a streamlining process in which revenues have not yet improved, but expenses have decreased significantly and liquidity has improved:

Vonetize is in the process of significantly increasing efficiency with signs of impact already seen in Q4 2018 as the company's burn rate decreased to $120,000 a month from about $235,000 a month.

The company is now trying to increase its revenues mainly in the markets in which it operates - Brazil and Russia. The company, according to its management, has completed integration of the system with a customer in Brazil and has signed a distribution agreement with several cellular operators in Brazil and therefore user growth is expected. In the background, the company signed a financing agreement for its marketing plan.

In light of the developments described above, we reduce the value of the company to NIS 32 million (approximately USD 9 million); target price now ranges between 0.67 NIS to 0.92 NIS and on average is 0.79 NIS.

Read the full report here.

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About the company - Vonetize PLC (hereinafter: "Vonetize" or "the company") offers video on demand (VOD), over-the-top (OTT) content services, and technology platforms as fully-managed services for set-top boxes, smartphones, smart TVs and other Internet-connected devices.  The company offers multiscreen end-to-end video content solutions including premium content from Hollywood studios and cloud-based digital video delivery of live and VOD content. Additionally, content management, billing, CRM, and marketing/business intelligence (BI) analysis systems are offered. Headquartered in Israel, the company is also active in Latin America, Africa, and Europe. Vonetize has been listed on the Tel Aviv Stock Exchange since July 2016. It was established and incorporated in Cyprus as Pixelate T.V. Ltd. in April 2011, and rebranded in February 2016. Please click to learn more: https://ww2.frost.com/research/equity-research/vonetize-plc/

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