QYOU Media Inc. (TSXV:QYOU) shares have soared 264% since Capital Ideas wrote about the company 17 months ago
Capital Ideas Media | April 29, 2022 | SmallCapPower: For those subscribers who are comfortable with higher risk for much bigger potential upside might want to consider shares of QYOU Media Inc. (TSXV:QYOU).
(Originally published on Capital Ideas Media on November 24, 2020)
QYOU Media operates in India and the United States, producing and distributing content created by social media stars and digital content creators.
[Editor’s Note: Shares of QYOU Media have soared 264% since Capital Ideas wrote about the company 17 months ago]
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Its 88% owned The Q India subsidiary, which targets the approximately 400 million Millennial and Gen Z market in India, is a Hindi-language television channel with a growing VOD content library, as well as over 800 programs and counting, that is now available to approximately 610 million users via 55 million television homes with partners including TATA Sky, Airtel DTH & SitiNetworks.
At the time, QYOU announced Q India viewership growth of 88% over a five-week period, with impressions climbing from 6.1 million to 11.3 million. And, perhaps more importantly, the Time Spent Viewing increased 66% from an average of 30 minutes to 50 minutes per session.
In a note, Ubika Research said The Q India’s average time spent viewing is top among its peers and is 20% to 30% greater than established media companies such as MTV, HBO, and Sony.
In fact, the Ubika analyst believes QYOU Media is a prime takeover target for a large media conglomerate looking for access to Indian Millennials, pointing to established Indian media companies such as Mahindra Entertainment as well as US media companies such as MTV—Viacom, Bindaas—Disney, HBO—Warner, who would likely pay a premium for an established brand instead of trying to build out one of their own.
Ubika Research added that the best comparable company to QYOU Media’s upside potential is Millennial-focused digital news network Cheddar Inc, dubbed the “CNBC for Millennials,” which saw its valuation increase by 13-fold from its Series A to its acquisition by Altice USA.
Ubika noted that QYOU Media has an even larger distribution reach in India (~1 billion combined), similar demographics (Millennial/Gen Z Indians 20-30 years old), and exists in an emerging market with M&A growth expected to outpace that of the United States, all which should attract the interest of potential suitors should the company continue on its current growth trajectory.
Ubika Research, at the time, increased its target price on shares of QYOU Media to $0.50 from $0.30.
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