Technology

Report by Forensic Alpha

Given the underlying weakness in the advertising business, management has been at pains to demonstrate growth from new revenue streams - in particular what they call “recurring revenues” based on selling premium subscriptions and selling to business customers. However, Forensic Alpha highlights a 25% increase in FY23 in Accounts Receivable from business customers with a sharp deterioration in the ageing profile of receivables. If a customer is overdue on their bills by 4 months, they are unlikely to represent a reliable or recurring revenue stream. As a result, they question whether the growth demonstrated by the company is entirely sustainable.