Motio’s modern approach to advertising sees considerable growth

Motio’s modern approach to advertising sees considerable growth

Date of Report 17/08/2021
ASX: MXO

Price A$0.076

52 Week Range: A$0.041 - 0.155

Market Cap: A$17.78m

Sector: Media & Entertainment

We invite leading fund managers to present at our fortnightly The Insider: Meet the Fund Manager webcast series. During his presentation, Harley Grosser from Capital H Management selected Motio (ASX: MXO) as one of his 3 favourite stocks, based on its strategy focused on scalability and high quality management teams.

May 7th, 2021

June 9th, 2021

The Insider: Meet the Fund Manager sessions are a great way to hear directly from leading funds managers. They share their approach to investing, favourite companies and their market view for the year ahead.

The Insider: Meet the CEO sessions feature a selection of company leaders who provide a succinct overview of big things their companies are doing. 

When COVID-19 hit last year and cities went silent, companies slashed their non-digital advertising budgets. With major media players discounting their billboards by as much as 90%, the industry had hit rock bottom. 

Amongst all this, an unlikely underdog caught the eye of Capital H Management’s Harley Grosser: Motio Limited (ASX: MXO), a place-based media business built for today’s advertising environment.

Motio sells advertising space on their digital displays that are positioned in long dwell time locations such as medical centre waiting rooms, sports centres, and service stations.

“We were trying to find a microcap with a scalable strategy and well-aligned with high quality management teams. And I think Motio is that,” said Mr Grosser.

“It’s a lot easier for Motio to build this from the ground up than it is for a legacy player who has a whole lot of old school technology to make that shift,” added Mr Grosser, whose company invested in the company in part based on its strategy focused on scalability and acquisitions.

Motio’s CEO Adam Cadwalladar presented at Reach Markets’ Meet the CEO session earlier this year to discuss his business.

“We have a really considered ecosystem that engages the people that are in the environments. Importantly, the locations themselves use our digital displays to connect with their customers which provides an additional level of ‘stickiness’ that brands truly appreciate,” he said during the session.

Motio recently expanded its medical centre reach almost eightfold through an acquisition of healthcare-focused media company, Swift. Motio now has access to over 500 medical centres across the country.

“It gives the platform the opportunity to roll out content and technology across that space where they instantly have the scale where it makes sense from a revenue perspective,” Mr Grosser explained.

Since Capital H Management invested in Motio, the market cap has gone from around $7 million to $30 million. 

All four of the board directors have also recently bought more stock which is “always a great sign” according to Mr Grosser.

The company is now preparing to launch its investor relations strategy which in Mr Grosser’s view will lead to more market visibility, deals, and acquisitions.

Click here to view more videos from Harley Grosser’s ‘Meet the Fund Manager’ session, or click here to view the full ‘ The Insider: Meet the CEOs’.

 

The CEO’s of all the companies chosen as Fund Manager favourite stocks are invited to present at our Meet the CEO series. Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.

Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.

The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.

Next Fund Manager

Matt McNamara – CIO & Board Director, Horizon 3 Biotech

Matt is a specialist in human healthcare technology and is passionate about investing in the commercialisation of this industry. He has spent more than 30 years in the healthcare and medical sciences sector and has more than 20 years’ experience as a venture capitalist. Matt has served as the CIO at BioScience Managers ($200m FUM, >20% IRR), CEO of SciCapital pre-seed fund, SVP Business Development for eBioinformatics Inc and has an exciting portfolio of executive/non-executive board and advisory roles.

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The CEOs of all the companies chosen as Fund Manager favourite stocks are invited to present at our Meet the CEO series. Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.
Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.