destra Corporation CEO, Domenic Carosa. “destra is keeping pace with the rapid growth of the Australian digital entertainment and media market segments. We have made several strategic acquisitions this year in line with our plans to focus entirely in the media and entertainment space."
destra delivers on its Promise to Build a Fully Integrated Digital Media and Entertainment Company
30th August, Melbourne; Australia’s largest independent digital media company, destra Corporation Limited (ASX:DES), today released its financial results for the year ending 30 June 2007. destra reported an improvement in earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.7 million (based on Continuing Operations which excludes the operating results and profit on the sale of businesses sold during the year).
- Group Revenue $66.8M - up by $54.4M or 438%
- EBITDA $1.2M - improved by $2.7M
- NPAT attributable to members $0.2M - improved by $0.7M
- Pro-forma FY07 EBITDA of $10.8m*
* Pro-forma EBITDA includes Magna Pacific (acquired in August 2007) and the pre-acquisition results of businesses acquired during the financial year. Pro-forma excludes the operating results and profit on the sale of businesses sold (i.e. destra Communications, destra Hosting and Domain Names) during the financial year.
destra Corporation’s solid financial performance was further bolstered by the following.
- Sale of destra’s Hosting and Domain Name businesses for $19.8 million.
- Sale of destra’s Communications (Comms) division for $6.7 million.
- Acquisition of Magna Pacific, Brand New Media, Niceshorts.com.au, MRA Entertainment and Central Station Records.
- Increased Quickflix stake to 19.9% (Quickflix is one of Australia’s largest online movie rental companies)
- Prime Television’s investment in destra of $10.4 million (including $3.1M in August 2007).
destra Corporation CEO, Domenic Carosa said that the positive results signify the transition of destra from a hosting business to a fully integrated digital media business. “We are pleased with these results and we are confident that the platform we have created will deliver continued earnings growth in FY08.
“destra is keeping pace with the rapid growth of the Australian digital entertainment and media market segments. We have made several strategic acquisitions this year in line with our plans to focus entirely in the media and entertainment space. destra’s strategy is focused on creating and acquiring content (Intellectual Property) and building Communities around the content. destra monetises the content and communities via advertising, as well as through the sale of entertainment content.
“In May 2007, destra partnered with Magna Pacific and Quickflix to announce a pilot Video on Demand (VOD) service, which allows consumers to download movies via the internet directly to their computer. This alliance is an illustration of true integration and destra’s intention to connect consumers with online communities, targeted entertainment and advertisers.
“These results are indicative of our ability to leverage the sale of content through destra Entertainment and the sale of advertising through destra Media. Increasingly, destra is also a leading producer of brand-funded content. We are working with major advertisers to develop marketing solutions via the creation of content for brands and consumers”, said Mr. Carosa.
Carl Olsen, Chairman, destra Corporation, comments, “The 2007 financial year was a year of significant development and transformation for destra, as a result of continued organic growth and the acquisitions of strategic businesses. These developments, together with the divestiture of the destra Business division, have resulted in the creation of a synergistic portfolio of media and entertainment businesses”.