Destra Corporation (DES) [Archive]

tommy

16-03-2006, 02:16 AM

I have been keeping an eye on DES but unfortunately never took the plunge and missed the skyrocket (I was caught up in FRE!) but am now considering making a small punt following the latest announcement.

If you are interested in a profitable and diversified Internet and e-commerce company with strong growth, with great exposure to mobiles and Internet with an impressive list of partners, DES may be worth keeping an eye on.

Half Yearly Presentation
http://stocknessmonster.com/news-item?S=DES&E=ASX&N=251500

Half Yearly Report/Half Year Accounts
http://stocknessmonster.com/news-item?S=DES&E=ASX&N=251496

destra and Intel sign music on demand deal
http://stocknessmonster.com/news-item?S=DES&E=ASX&N=249865
___

Here is the company profile:
http://www.destra.com/corporate-profile/financial-overview.asp

"destra Corporation Ltd (ASX:DES) is a leading internet and e-commerce company delivering business communications and consumer entertainment solutions through its two arms #8211; destra Business and destra Media.

destra Business strategy is focused on producing innovative and pragmatic solutions in web hosting, data access and voice communications for businesses. In the digital media markets, destra is the largest Australian digital music provider, committed to endorsing independent and retail digital music.

The destra Business group comprises of two divisions - destra Business and TPP Internet. These divisions service the SME sector through mid tier to large corporations delivering solutions and efficiencies in data connectivity, voice communications, managed and virtual hosting and domain name services.

destra Business

destra Business is an established end-to-end managed service provider of comprehensive data, voice and hosting solutions to broad market segments. destra Business services SMEs, large businesses, corporates and government Australia wide.

The destra Business slogan, gNo Limitsch reflects our focused efforts to support our customers in achieving their business goals and removing the risks and concerns associated with implementing their business communications needs.

The breadth and depth of destra Business services and products include voice and data communications, enterprise and co-located hosting, full managed hosting services for all platforms, domain registration, wireless and broadband connectivity, network integration and data centre facilities.

TPP Internet

TPP Internet is one of the top 3 domain registrars in Australia selling domain registrations directly and through its channel arm. TPP Internet registers domain names in many countries for its clients that include Telstra, News Interactive, NineMSN, Lend Lease Corporation and ANZ Banking Group. In addition, TPP Internet is the exclusive international domain name registrar for the Solomon Islands (.sb).

destra Media Group

destra Media has four divisions focusing on technology leadership in digital delivery downloads to meet a variety of business and consumer music needs. The divisionsf strategies are based on destra Mediafs core plank of music, entertainment and youth focus in the growth areas of digital music and video, mobile phone content and music self publishing markets.

destra Music
destra Music is Australiafs largest digital music distribution network and facilitator of the online distribution of digital music using Digital Rights Management (DRM) technology. destra Music was the first company in Australia to launch a legal digital music service in December 2003, offering music through its network of online retail partners. Today, destra Music is the largest digital music provider in Australia with access to over 1,300,000 tracks from major record companies including EMI, Sony and FMR, while digital music delivery is managed through retail partners such as Harvey Norman, Chaos and JB HI-FI.com.au and the ABC.

Musicpoint
Musicpoint is Australiafs number one web-based service for radio stations providing immediate, secure and automated online distribution of new music re

tommy

16-03-2006, 09:13 PM

http://www.crn.com.au/story.aspx?CIID=35835&src=site-marq

Destra records rising revenue
14 March 2006 12:26 AEST

ASX-listed Destra has announced its half year results to December 05, recording revenues of $12.1 million, up 73 percent from the same period last year.

Despite 542.5 percent revenue growth in the companyfs Media division to $1.89 million, its Business division picked up the lionfs share of revenue with $10.3 million.

The company also recorded an EBITDA of $0.9 million up 20 percent, net profit of $0.5 million up 108 percent and an operating cash flow of $1.6 million up 454 percent.

The company is now looking forward to an EBIT of $1.2 million for the full year and is placing high hopes on the digital music market.

Citing IDC stats, Destra said the sector was expected to grow 45 times over the next four years to around $52 million.

Mobile music and video growth was also expected to boom, leaping from $5 million last year to $200 million in 2009.

Its core Business division is still expected to perform thanks to stats indicating that managed web hosting market was expected to grow from $140 million this year to $180 million in 2007.

Shared hosting is expected to grow gradually from around $75 million to $82 million in the same period.

As at 1pm Destra shares were trading at $0.27 per share, up from $0.25 cents at the start of todayfs trading.

____
http://www.smh.com.au/news/breaking/intel-plots-new-course-with-viiv/2006/03/16/1142098582054.html

Intel plots new course with Viiv

By Louisa Hearn
March 16, 2006 - 3:01PM

The company that brought us the Pentium and Centrino brands has now wheeled out Viiv, a platform built around processor technology that Intel hopes will power a new generation of home entertainment.

Viiv-branded PCs from a number of hardware suppliers will be appearing in Australian stores anytime from now, offering remote-control access to on-demand games, movies, music and other content and services through local partnerships.

Six local partners have so far been announced in Australia, but Intel promises more are in the works. Adobe, Destra Music, Muvee, Telstra BigPond, Quickflix and Ubisoft will provide a patchwork of content and services to Australian Viiv users, and Intel said its role was to ensure that all of their services functioned seamlessly on the new platform.

The company says its offering is really just the first of many steps into the fast converging media sector with an offering that will hand control back to consumers.

"Intel is focused on creating innovative computing platforms that usher in a new era of playing and living," said Don McDonald, general manager of Intel's digital home division.

The underlying theme to the architecture is the creation of a consumer friendly media device that does not require any special technical expertise to converge a wide range of rich content across a number of devices within the home, and thus control of the platform is centred around the remote control.

By navigating through the interface screen, users can choose how they wish to view and share their content - whether that be through the TV in the living room or networked devices around the house.

A large range of computer form factors are expected to be created around the architecture, from PC towers to entertainment hybrids that resemble television sets - all of which will be bundled with Microsoft's XP media centre. Unit prices are expected to vary widely.

The target market for the technology are those who spend a lot of time editing photos, downloading DVDs and digital music online, but Intel concedes that the better your broadband connection, the better will be your experience of heavy bandwidth material such as on-demand movies.

tommy

17-03-2006, 01:35 AM

Haven't bought yet, but still digging more info to make up my mind...

http://www.itwire.com.au/content/view/3654/48/

destra announces web, TV and mobile MP3 music download service
By Stan Beer
Thursday, 16 March 2006

MP3 music network, a newly created division of destra Corporation Limited (ASX:DES), has announced a multi-channel global expansion program during the Australian launch of Intel Viivtechnology, Intelfs new digital entertainment platform.

destra Media has expanded and renamed its MP3.com.au business, now known as destra Mediafs MP3 music network division, by launching into eight new markets as a provider of multi-channel MP3 music download services.

gToday we launch both the worldfs first MP3 music download service onto the television via the Intel Viiv technology digital entertainment platform in Australia and expand our service globally into eight of the top ten music markets worldwide,h said Clive Mayhew, general manager of destra Media.

Mayhew said that the company is launching MP3 music network services in eight countries initially with artist provided music destination web sites in New Zealand, UK, US, Canada, Italy, Spain, France and Germany.

destra Media has introduced a new global brand as part of the launch. gOur new global brand, MP3 Powered, (www.mp3powered.com) represents the worldfs first multi-channel MP3 music download service #8211; the web, the television and over the mobile phone. The powered brand says it all, connecting the artist to the fan digitally regardless of device - it works on iPods, PCs, mobile phones and now TVs,h said Mayhew.

The MP3 music network of services connects emerging artists to multi-channel audiences worldwide. The multi-channel services are already available in Australia via the web and the countryfs largest 3G operator 3 mobile through a $3 per month subscription service. The Intel-verified music service is now also accessible via the television with Intel Viiv technology-based PCs.

Initially, the global expansion will be via eight new country specific web sites designed to provide a greater regional music destination experience and increase online traffic. This is being closely followed by future mobile operator partnerships and the expansion of television access via the Intel Viiv global content program.

The newly created division of destra Media, MP3 music network, intends to derive its revenues from the combination of online advertising (web) and new subscription based revenues (mobile and television) from its global web, mobile and television based services. The destra board sees the MP3 music network division as a very significant revenue growth opportunity for destra Media going forward.

tommy

21-03-2006, 04:59 PM

Decided to take the plunge today and purchased some DES shares... I'm not good at timing the market so I hope it doesn't plummet in the following days[|)]

http://asx.netquote.com.au/charts.asp?code=des&x=0&y=0

tommy

22-03-2006, 02:23 PM

DES up 9% today [:I] not bad for a slow day...

tommy

23-03-2006, 02:54 PM

http://stocknessmonster.com/news-item?S=DES&E=ASX&N=252126

destra acquires two online music communities

Melbourne, 23rd March 2006; destra Corporation Limited (ASX: DES) has become the largest independent music network in Australia with the acquisition of two music community websites; www.thescene.com.au and www.tranzfusion.net announced today.

gThe acquisitions are part of destrafs strategy to acquire consumer focused entertainment websites. We believe these sites offer an excellent environment for advertisers, in addition to the revenue generating potential from digital music downloads,h said Domenic Carosa, destra Corporation CEO.

gThese sites are the new entertainment ghomesh of the highly desirable 12 #8211; 30yr old demographic, who are becoming increasingly elusive for advertisers to connect with. We wonft compromise the integrity of these sites, ensuring we only permit appropriate products and services are represented on our sites in a way that does not detract from the consumersf online experience. h

Carosa added, gAs part of our strategic review, the Board has decided to divest destrafs joint venture interest in Musicpoint [B2B service] to our joint venture partner, Radio Computing Services of Australia (RCS) for a consideration of $500,000 cash plus the payment of dividends and loans.h destra continues to maintain a strategic relationship with Musicpoint which allows for priority promotion of its independent artists including the recently acquired Rajon Music Group.

The acquisitions were made for a total of 1.2 million destra shares.

As announced last week, destra Media has expanded its MP3 Music network division by launching into eight new markets (USA, UK, NZ, UK, Canada, Spain, Italy & France) as the world's first provider of multi-channel MP3 music download service. The multi-channel services are already available in Australia via the web and the countryfs largest 3G operator 3 mobile through a $3 per month subscription service. Through the companyfs partnership with Intel, its music service is now also accessible via the television with Intel Viiv technology-based PCs.

In February 2006, MP3.com.au was awarded the prestigious Hitwise Online Performance Award for the # 1 website among internet users in the 'Entertainment - Multimedia' category.

tommy

25-05-2006, 04:14 PM

Wow, this management team never stops, very aggressive in seeking growth!

Acquires Visual Entertainment Group:
http://sa.iguana2.com/cache/a8d5ef37c3a7ce0e5899bc940485ade3/ASX-DES-255386.pdf

tommy

08-06-2006, 04:08 PM

Down 25% today[:0]

Good buying opportunity?!

OneUp

08-06-2006, 04:21 PM

Apparently Invest4Profit issued a "sell" recommendation - sending the shares down 50% at one point. (Their buy recommendation a few months ago sent the shares soaring 100% from 15c to 30c, now the reverse happened....Invest4Profit will record a "profit" of 100%, but their subscribers are probably break even.)

I was looking at DES last night infact, but decided at a (fully diluted) market cap of $50m they were too expensive.

But took the opportunity to buy some today.

tommy

08-06-2006, 04:31 PM

quote:Originally posted by OneUp

Apparently Invest4Profit issued a "sell" recommendation - sending the shares down 50% at one point. (Their buy recommendation a few months ago sent the shares soaring 100% from 15c to 30c, now the reverse happened....Invest4Profit will record a "profit" of 100%, but their subscribers are probably break even.)

I was looking at DES last night infact, but decided at a (fully diluted) market cap of $50m they were too expensive.

But took the opportunity to buy some today.

Hi oneup,

Damn, I completely missed a good buying opportunity... did you get in below 20c?!

OneUp

08-06-2006, 04:42 PM

Hi Tommy,
no not below 20c, a little over. Had to be very quick to get it at 16c! Crazy panic selling. Will be interested to see whether any insiders purchased shares on market today.

Probably a few day traders bought this morning - and will look to close out their positions before the end of the day - so we might see some price weakness and a decent opportunity? So, anyway, still watching and will hope to get some on the cheap in the next while.

Unless their business has fallen to bits there has to be room for DES to beat its predcition of $1.2m EBIT this year.

tommy

08-06-2006, 04:59 PM

Hi Oneup,

I was too slow to get in... wanted to re-enter DES under 20c! Greedy or what?! Shame on me.

I think DES is a very attractive little company considering its aggressive expansionary strategy combined with organic growth in an exponentially expanding market. A lot of competition though in their market, that's the only downside.

DES can become a very good takeover target considering their service portfolio when the market starts consolidating.

I very much doubt that their business has "fallen to bits"... their announcement today confirms that.

OneUp

09-06-2006, 01:30 PM

Hi Tommy,
there still seem to be a lot of Invest4Profit subscribers who want out.

1.7m on the sell side at the end of trade yesterday, including 380k at 25c. Pulled by this morning - but they're still out there.

I didn't buy a lot yesterday. I'm quite happy to see this one trend down a bit and pick up some bargains.

tommy

09-06-2006, 03:47 PM

quote:Originally posted by OneUp

Hi Tommy,
there still seem to be a lot of Invest4Profit subscribers who want out.

1.7m on the sell side at the end of trade yesterday, including 380k at 25c. Pulled by this morning - but they're still out there.

I didn't buy a lot yesterday. I'm quite happy to see this one trend down a bit and pick up some bargains.

Hi oneup,

Yeah, holders are jumping off the cliff like lemmings[|)]

Want to get in below 20c but quite happy sitting on the sidelines for the time being.

Shake out the bears and this stock will recover eventually.

OneUp

22-06-2006, 04:11 PM

Hi Tommy,
below 20c now - I guess you got your wish!

How far will Invest4Profit subs/tax loss selling push it down?

Not convinced we have seen the end just yet. At 15c I'll fill out the rest of that order.

tommy

22-06-2006, 04:22 PM

Hi oneup,

Yup DES down to 19c, but chart looks terrible... don't like catching a falling knife in the current volatile market!

http://asx.netquote.com.au/charts.asp?code=des&x=0&y=0

Seems oversold but could well go below 15c at this rate! Might be worth the wait;)

OneUp

22-06-2006, 05:34 PM

Yeah, the chart looks sick. But consider the reasons for the chart looking sick.

(1) Probably a little overvalued at 35c
(2) Selling by the sheep at Invest4Profit
(3) Tax year related selling
(4) Market wobbles

I wouldn't say DES is a steal at 17c but not full of hot air as it was at 35c. Selling by the subs can't be far away from subsiding. Any analyst recommendation at the microcap level can have a major effect on the share price (on the up and down), but most of this effect at most lasts 6 months.

Picked up a handful just now at 17 to add to my very modest bundle.

tommy

22-06-2006, 05:57 PM

Hi Oneup,

Good bargain buy at 17c mate, should be rewarded nicely when the financial results come out[:I] I'm still waiting for 15c or below, shame on me for being greedy!

I'm trying to pick up some other el cheapo tech stocks at the moment, now that I have dissolved all my ENG holdings and need somewhere to park my cash:)

Wouldn't mind buying more EMI but already accounts for 30% of my portfolio so I shouldn't really... GBT also looking cheap at $2.37 today but already have a truck load so not good from diversification point of view... so I ended up buying into SEN again today[:o)]

OneUp

23-06-2006, 12:22 PM

Cheers Tommy, that's the plan anyway!

Seems to be a good amount of support around 16c. For the first time in a long time buyers appear to outnumber sellers.

Not sure if you've had a look at M2 Telecoms (MTU)? Not bankable but pays a good yield, low P/E, growing fast. Also a reseller for engin, not sure if that's a plus or a minus (given M2 get a commission on billings which engin aren't too switched on about!).

tommy

23-06-2006, 05:10 PM

Hi Oneup,

Seems like you have picked the bottom, well done mate[:I] I might have to get in at these levels before it hits 20c...

As for MTU, yes I had a look at them when ENG announced a tie-up with them and I think they are a nice little company provided you can put up with its extreme illiquidity!

tommy

29-06-2006, 12:27 PM

TRADING HALT before I got back in! ARRRGGHH

OneUp

29-06-2006, 05:58 PM

Looks like it will be good news too. Lots of buyers lining up - enough so that 25c would be hit. Fingers crossed.

tommy

30-06-2006, 04:06 PM

Congrats oneup, your early entry has completely beaten me... UP 30% today!

What a way to finish the financial year, excellent timing of entry mate. I completely missed out[xx(]

Acquires Payless Entertainment Ltd
http://sa.iguana2.com/cache/4e2a691e0ebf9d58e3cbead8dac95b56/ASX-DES-256956.pdf

OneUp

03-10-2006, 03:55 AM

Bought a few more of DES at 20.5c a month ago (average price still 20c). 24c yesterday.

Slowly creeping up.

Long term I'm not a fan, but I reckon she should be re-rated to 30-35c with all those profits from recent acquisitions coming through...

tommy

01-12-2006, 07:50 PM

Might be worth taking a look again at Destra (DES), now that the rights issue has been completed and the share price has stabilized, there might be more upside to this stock due to its well cashed-up position and strategic restructuring brought about by the sale of its web hosting business and the acquisition of Central Station Records and MRA Entertainment.

The sell off of web hosting and the acquisition of another label makes a lot of sense strategically for Destra as a digital media distributor as it will be able to enjoy synergies based on the concentration of resources into content-based services. However Ifm a bit surprised People Telecom didnft seek to acquire Destrafs web hosting business considering their good relationship in the past.

In terms of earnings, this appears to be neutral superficially. Basically the revenue from web hosting that has been lost from the sale of the business will be replaced by the revenue generated from the newly-acquired Central Station Records and MRA Entertainment. But at the organization level, the impact will be a lot greater than just a substitution of sources of income because the acquisition enhances the value of Destrafs existing content business in a major way.
In the medium/long run, industry consolidation will naturally occur but the latest move has given Destra a good chance to be one of the very few that will survive and grow due to its content portfolio.
I don't think this has been factored into the share price yet.

The fact that directors topping up their holdings adds a bit of confidence too!

I think DES is relatively low risk at the current price level (but I havenft bought back yet, still looking at the wobbly chart). Further acquisitions are quite possible, as that is their key strategy for growth. Personally I would love to see Jumbuck Entertainment (JMB) and Destra join forces due to their overlapping demographic targets (generation X and Y), that would make an killer content company for sure! (yeah right, dream onc)

Do your own research before you make crazy buy decisions like I do all the time;)

Oneup, are you still holding mate?

________________________________

AGM Presentation
http://sa.iguana2.com/cache/91f54e8cef40bdf4caf84d5e19be5c25/ASX-DES-266713.pdf

Destra to Acquire Central Station Records and MRA
Entertainment for $14 million

27 November, Sydney; Australiafs largest independent music and digital media company, destra Corporation Limited (ASX:DES), announced today it was entering into an agreement to acquire Central Station Records and MRA Entertainment from Home Leisure Ltd (ASX: HLD) for $14 million.

Destra is acquiring Central Station Records and MRA Entertainment for a consideration of $12.5 million cash and $1.5 million in vendor financing. The price is based on the achievement of financial targets and conditions. Destra will fund this acquisition using the cash generated from the recent rights issue and bank debt. The acquisition is subject to HLD shareholder approval later this year.

Central Station Records and MRA Entertainment generate over $3 million EBITDA per annum. Central Station Records and MRA Entertainment management teams will remain with the business.

Destra Chairman, Carl Olsen said the acquisition was strategic to destrafs position as Australiafs leading independent record and digital media company.

gDestra have illustrated a strong, consistent pattern of investment in profitable contentrich businesses. One of our core priorities has been to identify music and entertainment assets that have an unrealised or underdeveloped digital potential. This extends to our capacity to create advertising opportunities around targeted, online communities.h

Central Station Records (CSR) is one of Australiafs iconic independent record labels, with a music recording heritage of over 30 years. CSR specialises in contemporary dance and youth culture music with highly respected brands such as; Wild, Skitz Mix and Fuzzy included under the CSR banner. CSR has recently rel

tommy

18-12-2006, 12:29 PM

Up 25% on news!

destra Acquires Online Video Community -
NiceShorts.com.au

Melbourne, 17 December, 2006 #8211; destra Corporation Limited (ASX: DES) has expanded its online entertainment offering with the acquisition today of online digital video community www.NiceShorts.com.au and www.NiceShorts.TV.

NiceShorts is an Australian based video site akin to the popular American site YouTube.com, and specialises in short films, video clips and user-generated video content.

Destra Corporation CEO, Domenic Carosa said: gDestra already offers the largest independent network of music communities in the country, a move into online video was the natural next step.

gDestra is confident advertisers will recognise the value of Nice Shorts as an access point to the coveted youth markets. Advertisers are already embracing destrafs existing portfolio of Australian-generated online user-generated communities; www.MP3.com.au, www.tranzfusion.com.au and www.thescene.com.au.

gOur sites such as MP3.com.au and NiceShorts.com.au attract strong online communities because they have maintained their creative integrity and are magnets for emerging music and video content artists. While the videos on NiceShorts.com.au are appealing to all age groups, destra is expecting the site to be particularly popular with the Generation X & Y markets who have already embraced user-generated content.

gNiceShorts.com.au will become the platform to promote destrafs video content currently available on DVD. Just as radio program directors have drawn on destrafs MP3.com.au music charts, we expect NiceShorts.com.au #8211; and other video user-generated content
hubs - to lead Australian TV content production toward audience generated programs. We believe that ultimately online communities will influence, if not dictate, what we see on TV,h said Carosa.

Unlike its international counterparts, all content on NiceShorts.com.au is moderated to help prevent copyright infringement. The acquisition price, which will be paid in cash upon satisfaction of conditions stipulated in the sale contract, was not disclosed.

tommy

02-02-2007, 04:48 PM

Bought back into DES, looks like a good first half for DES:

http://www.news.com.au/heraldsun/story/0,21985,21123186-664,00.html

Global digital beat goes on

Anthony Marx

January 27, 2007 12:00am
Article from: Herald-Sun

ONE of Australia's biggest digital music providers enjoyed a bumper holiday sales season and has forecast continued strong growth in the year ahead.

Destra Music reported this week that revenues spiked 61 per cent in December over the same period a year earlier. Sales of music vouchers surged 217 per cent on a year-on-year basis.

A similar increase occurred in the months leading to Christmas, with voucher sales up 64 per cent from October to November and a 53 per cent increase in revenue. Voucher sales swelled 217 per cent from November to December, driving revenue up 258 per cent.

General manager Simon Crean declined to provide specific dollar figures for the percentage increases but he tipped another round of significant growth during this year's holiday period.

He predicted that consumers would continue to embrace mp3 technology and CDs would be fairly well obsolete within 10 years.

Destra Music, a subsidiary of listed media and internet services firm Destra Corporation, was the first company in Australia to launch a legal digital music service in December 2003 by offering music through its network of online retail partners.

Destra Music currently provides access to more than 1.3 million tracks from major record companies including EMI, Sony and FMR. Digital music delivery is managed through retail partners such as Triple J, JB Hi-Fi, Harvey Norman, ChannelGO.com.au, Leading Edge and ABC Shops.

Australia's embrace of online music is consistent with global trends, where sales last year doubled to $US2 billion ($2.5 billion).

Music industry body IFPI's Digital Music Report 2007, released this month, found digital sales accounted for 10 per cent of all sales. A quarter of all music sales will be digital by 2010, analysts believe.

The digital revolution has paid off handsomely for Apple, maker of the iPod and new iPhone. The American company last week reported a 78 per cent first-quarter profit jump driven by holiday sales. Net income rose to $US1 billion ($1.3 billion) and sales jumped 24 per cent to $7.12 billion.

Destra shares closed half a cent lower at 24.5 on Thursday. The stock is up more than 50 per cent over the past yea

tommy

12-02-2007, 11:23 PM

Is DES ready to break out of the current trading range soon?

http://asx.netquote.com.au/charts.asp?code=des&x=0&y=0

Frustrated performance lately... yawn. Suppose we have to wait for half-year results to be released.

tommy

23-02-2007, 05:42 PM

Not bad! destra half-year results out[:I]

__________________________________________________ ___

The board of destra Corporation Ltd (gdestrah) is pleased to report the half year results for the period from 1 July 2006 to 31 December 2006 (gH1-2007h). During this period, destra produced record profit and continued its transformation to an independent diversified media and entertainment business.

During the period, destra disposed of its web hosting and domain name businesses at a net profit after tax of $12.2M. In the Key Financial Highlights; Continuing Operations section below, the impact of this profit and the trading operations of the businesses which have been disposed of have been excluded from the results for the period and comparative period.

These results also include the impact of the initial recognition of prior year tax losses not previously recognised. As at 31 December 2006 $7.7M of prior year tax losses are available to offset future taxable
income.

Key Financial Highlights; Continuing Operations

Note: Continuing Operations excludes impact of profit on sale of businesses and the results of the disposed of businesses.

* Group revenue $35.9M - up by $28.6M.
* EBITDA $1.8M - up by $2.6M.
* NPAT attributable to members $3.4M - up by $4.1M.
* EPS (basic) 2.24 cents per share - up by 2.81 cents per share.

Other Operational Highlights

Other operational highlights for the period include:

Corporate:
* Sold hosting and domain name businesses for $19.8 million, comprising $18.8 million cash and $1 million worth of Blue Freeway shares (ASX:BLU).
* Unrealised gain of $590,000 on Blue Freeway shares as at the date of this report.
* Acquisition of 5 million shares in Quickflix (ASX:QFX) at a cost of $500,000.
* Unrealised gain of $650,000 on Quickflix shares as at the date of this report.
* Acquisition of Brand New Media, Niceshorts.com.au and Central Station/MRA Entertainment.

destra Media:
* Launched Musicvouchers.com.au across over 4,000 locations (Harvey Norman, JB Hi-Fi and Bill Express news agencies).
* Increased digital music catalogue to 1.7 million tracks with a focus of non-DRM (MP3) format music.

Brand New Media:
* Brand Licencing: Planet X (KFC and Toys R Us).
* Setup an online media sales division within Brand New Media.
* Launched Virgin Blue Media and integrated advertising platform across asset including the creation of Voyeur Active and In-Flight Live2Air Channel.
* Production: Jack of All trades / Channel 9 / Cumulative Reach of 2.3 million viewers.
* Planet X Winter Games, Planet X Summer Games, St. Kilda Festival activity.

destra Entertainment:
* Created Digital division to provide sales, marketing, technical support for the sales of digital content across the group.
* Signed a global IODA digital distribution deal - exposure of our content globally across iTunes, Napster, MTV and other global digital music service providers.
* Appointed as licensee to V-8 Supercars for 3 years.
* Appointed as licensee to A-League for 3 years.
* Achieved highest sales in history for an AFL Grand Final DVD (40,000 units of West Coast Eagles Grand Final).
* Signed Dannii Minogue & released gHits & Beyondh.
* Pink Floyd; Dark Side of the Moon DVD reached 3 x platinum sales.

Acquisitions and Disposals of Businesses
During the period, destra continued its strategic acquisitions of the following complimentary media and entertainment businesses.
* Brand New Media (acquired 3 September 2006) is a leader in the production of brand-funded content and is the advertising sales and marketing representative for a range of Pay-TV and International television channels. Brand New Media also provides production management and advertising services for print media and out-of-home advertising and has developed event-based brands including Planet X and Jack of All Trades.

* Nice Shorts (acquired 18 December 2006) is a web site specialising in short films, video clips and user generated video content.

* Central Station Records (acquired 29 December 2006

tommy

25-02-2007, 08:54 PM

Article in THE AGE:

http://www.theage.com.au/news/Business/Destra-boosts-firsthalf-profit/2007/02/25/1172338461393.html

Destra boosts first-half profit

February 25, 2007 - 4:29PM

Music and media company Destra Corporation Ltd has lifted its first-half net profit, saying it is on target with plans to acquire content and build online communities.

Destra, which operates a network of music websites in Australia including MP3.com.au, posted a profit of $3.4 million, a rise of $4.1 million on the same period a year ago.

Destra chief executive Domenic Carosa said the results reflected the company's transition from being a web hosting company to one that was focused on media and entertainment.

Mr Carosa said one year into its digital media plan, Destra was focused on both top and bottom line growth, as well as continuing to make solid digital media investments.

"Destra Corporation is on target with its strategic plan by continuing to acquire and generate content, building online communities around content and selling advertising," Mr Carosa said.

"We anticipate that our future results will reflect Destra's expansion plans."

The company bought digital video website NiceShorts in December for an undisclosed amount, and advertising group Brand New Media (BNM) for $12.2 million three months earlier.

Mr Carosa said BNM was well placed to tap into the online advertising market, which is tipped to be worth about 1.8 billion or 13.1 per cent of total advertising revenue by 2010, according to a study by PriceWaterhouseCoopers.

"Destra's recent acquisitions demonstrate our position of being at the forefront of innovation in digital media and capitalising on the industry's continued growth," he said.

Group revenue in the six months to December 31, 2006, was $35.9 million, up from $28.6 million in the same period a year ago.

EBITDA, or earnings before interest tax, depreciation and amortisation, rose to $1.8 million, up $2.6 million.

tommy

26-02-2007, 03:32 PM

What da, share price falling now???? Market sentiment is crazy at the moment... impossible to please shareholders.

Media presentation out:
http://sa.iguana2.com/cache/0d509a040a68b539ab4c5046b9430282/ASX-DES-271082.pdf

______________
In da AUSTRALIAN:

http://www.theaustralian.news.com.au/story/0,20867,21285345-7582,00.html

Minnows have swell time riding internet wave

* DIGITAL MEDIA
Michael Sainsbury
* February 26, 2007

WITH the second internet wave now well and truly upon us, two modest listed media companies with digital media ambitions are proving that there is business out there competing against the media and technology giants.

Both Quickflix and Destra have shown with good results last week that it takes focused management and a bit more than a few press releases.

If you didn't realise that web and digital media companies are starting to see huge valuations, take a look at Wotif.com.

Last week the no-nonsense Brisbane-based company beat its prospectus guidance by a country mile when it issued half-year results.

Its shares have soared close to 150 per cent since listing last year. It has six-month revenues of $31 million and its market capitalisation is $944 million. That is not a misprint.

It's about 57 times future earnings; no wonder the owners said no to a trade sale.

Quickflix, with a market value of $12 million, is not in that valuation league, although founder and former investment baker Stephen Langsford must be jealously eyeing the Wotifs of this world.

Quickflix operates an online video store where users subscribe to a range of plans each month. They can watch as many movies as they can consume, sent to and from by speedy post.

Langsford has done a good job sticking to his knitting since he founded the Perth-based company in 2003, based on the business model of US success story Netflix.

Langsford has also not allowed the company to get ahead of itself charging into online downloads in the way his main rival Telstra BigPond Movies has (the big telco can afford to).

This is the emerging future for Quickflix, but the old evolution over revolution maxim is true here, too.

Most consumers have broadband that is too slow to almost instantly download video and the "digital home" dream remains a nightmare of integration that even tech-savvy householders have trouble getting right.

Apart from the old Telstra gorilla, Quickflix has seen off its competitors, most impressively James Packer's HomeScreen, which it rolled up last year.

Quickflix is also starting to find the support of some big-name investors.

Last year Lachlan Murdoch dipped his toe in the water, buying 6 per cent of the company.

Next there was Bruce Gordon, owner of the successful WIN regional television network, who increased his stake to 14 per cent last week.

Dominic Carosa's Destra recently sold off its cash-cow hosting business to pull focus on online media and entertainment. Excluding the sale, the company made $1.8 million in earnings on revenues of $35 million for the half.

Destra has attracted a few small-cap financial institutions to its investor rolls and its market cap is now a healthy $47 million.

The company buys and operates small media operations and Carosa is looking to continue strong growth both organically and through acquisition.

The fortunes of Quickflix and Destra lie in stark contrast to those of Reel Time.

A few weeks ago we noted that Reel Time would not have enough cash to see through the quarter. The chickens appear to have come home to roost.

On February 16 the company's shares were suspended from trading with no sign yet of an end to the halt. If they don't get more funding, the company will go under.

Not only is there no cash in the tin, Reel Time has made little progress with its business. Despite a brave press release a few weeks back, Reel Time's relationship with Yahoo7 has all but collapsed.

The company was originally to have provided the video download engine for the Seven/Yahoo joint venture.

After

OneUp

26-02-2007, 04:28 PM

quote:Originally posted by tommy

What da, share price falling now???? Market sentiment is crazy at the moment... impossible to please shareholders.

I know what you mean mate.

Market very fickle at the moment. The bull market's running out of steam when companies fail to rally on good news.

tommy

28-02-2007, 05:04 PM

Intersuisse report recommendation "BUY"

http://www.intersuisse.com.au/notes/mntuesday.pdf

[b]
Destra Corporation (DES)
Strong Revenue from Music and Advertising Sales.
BUY 0.250
Event

*Business Overview*
Destra is an entertainment and advertising company with many facets to the business. Destra is being transformed from its original IT services business to an independent digital media company. The media business is in both conventional CD/DVD sales and online music. The growth area is in the online business, as more people choose to access music from the internet. Destra is positioning itself to become a major player of both the content and the distribution channels.

*Financial Result*
The current financial results do not reflect the changes in the company and only capture part of the results of recent media acquisitions.

- Actual Results
* Revenues $35.9m
* EBITDA $1.8m
* NPAT $3.4m
- Results Adjusted to Reflect the Shift in Business Strategy (if
all continuing businesses were held for 6 months and all discontinuing businesses are excluded for the 6 months)

* Revenue $63.4m
* EBITDA $4.0m
* NPAT $3.0m

The results demonstrate that the companyfs change in
strategy is working and a strong result is expected in the
FY07e.

Impact
*Going Forward*
The company has stated that it will be acquiring and building new channels for media and advertising. We expect these to be funded through short-term debt, which the company can easily service. Further growth is expected as more advertising revenue and CD / online music sales.

For the FY07e we expect revenues in the range of $120m and an EBIT in the range of $6m. This places the company on an EBIT multiple of about 7.5 times.

Historic results do not reflect the company's future results due to disinvesment of the IT businesses.

*Recommendation*
We retain our BUY recommendation

*Previous Intersuisse Research*
Destra - Sales up 111% to $32.9m & Acquisition of Brand
New Media #8211; September 2006
Destra - Creating a Top Independent Media Company #8211;
August 2006