Web Site : http://www.dorimedia.com


Dori Media Group (DMG) is active in the international television market, specializing in the various business aspects of the Telenovela genre. The Group's business model focuses on a number of distinct but complementary businesses, each generating income independently: producing and distributing Telenovela; operating television channels; and selling related merchandise, thus creating a synergistic business group.


Broker Forecasts : DS

2007 EPS = 15.3p
2008 EPS = 22.13p


Major Shareholders (Shares in issue 20,403,727) :

Mapal Eden Telenobles Ltd. 7,770,161 (38.08%)
Miella Venture Partners inc. 4,261,303 (20.88%)
Mr. Yair Dori 3,245,000 (15.90%)
B.F Holdings GmbH 970,000 (4.75%)

Fantastic results, with huge growth coming in the next two years. I don't normally post recommendations to buy or hyperbole about companies but this company is flying in a very very secure market. The deal with SOny is particularly exciting, and they have m managed all the growth without diminishing margins.

Nice set of results :)

Daniel Stewart comment today :


Dori Media - BUY

Price: 159p Target price: 343p Code: DMG.L Analyst: James Hollins | 020 7776 6571


FY results; forecasts & target upgrades

Dori Media is our key pick in the media sector. The company has reported FY07A results c.19% ahead of our expectations.

We are upgrading our FY08E estimate by 13% and introducing a FY09E forecast of 51.5c (+24% vs FY08E).

We apply a 13x target multiple to FY09E EPS (343p target, 116% upside) and reiterate our Buy stance.

Doris FY07A results reflect top-line growth of 47.1% ($30.0m vs $20.4m), with solid increases across all divisions.

The largest division by revenue, TV series rights sales (+71% YoY, c.60% of group sales), benefited from strong recurring revenue, as well as substantial growth from new additional content, including Lalola.

Group gross margin increased from 73.4% in FY06A to 73.7% in FY07A (vs 69.0% forecast) with lower-than-expected content acquisition costs.

The group reported EPS of 33.8c, equating to 19.3% out performance against our 28.41c forecast and representing YoY earnings growth of 25.4%.

Following the FY07A results, and given our bullish outlook, we are upgrading FY08E PBT from $11.1m to $12.5m (+12.4%), with a resulting (unchanged tax rate of 21.0%) increase in earnings of 12.6%, from 36.97c to 41.62c.

We are introducing a forecast for FY09E, showing top-line growth of 35.2% to $82.5m, with earnings growth of 23.8% to 51.51c.

The resulting FY08E and FY09E multiples of 7.5x and 6.0x fail to reflect the strength of the business.

We believe that the company deserves a genuine growth multiple and premium to the UK television production sub-sector.

Doris growth potential and existing position in the global Telenovela industry, in our opinion, justify a target of 13x FY09E earnings. On this basis, we apply a target price of 343p.

The value of the cash generative nature of the business is borne out in our DCF-based valuation that drives our bull-case valuation of 405p.