Destra has recently transitioned from a digital media and web hosting company to a pure play media and entertainment company (specialising in digital advertising and content provision through its websites such as MP3.com.au)
destra Corporation (DES)
Not formally covered; Share Price: A$0.33; Market Cap: A$72m
Recap of the business
Destra has recently transitioned from a digital media and web hosting company to a pure play media and entertainment company (specialising in digital advertising and content provision through its websites such as MP3.com.au). As part of the transformation it recently sold its web hosting and domain name business to BlueFreeway for A$19.8m and sold its communications division to IntraPower for A$6.25m.
In the last 2 years DES has also acquired a variety of niche brands including Brand New Media, Niceshorts.com.au and Central Station/MRA. Destra recently increased its stake in video on demand provider Quickflix (QFX.ASX) to 19.9% in a deal which saw Lachlan Murdock take a stake in Destra through his investment company Ilyria.
Key points of interest
Destra is focussing on building a variety of niche brands/ communities to replicate the success of Planet X. Destra provides or creates audio and video content to attract customers to its websites where it develops communities and sells advertising and digital content. For example Destra hosted the Milo Planet X Junior Games recently. Businesses purchased advertising space from DES which funds the free event. This allows DES to create digital content for online communities and monetise this by selling online advertising, audio and video content. DES.s transition to a pure play media and entertainment company is a significant turning point as the company leverages innovative digital advertising.
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