So far, the results of the IMS group have generally been based on two pillars of activity: subscriptions and advertising.
After the results for the second and third quarters of this year, it can be said that a third one has appeared. It is related to settlements with organizations for collective management of copyrights.
This new segment is hosted by Closer Music and, in our opinion, marks an important turning point in this project.
It can be considered that Closer Music has passed from the stage of a pure start-up to a business with the possibility of generating real profits. As a result, our model began to include future flows based on our estimates of settlements with collective management organizations.
This factor is mainly responsible for raising the target price for IMS shares to PLN 4.6 per share (previously PLN 3.8).
We also maintain our "buy" rating for IMS shares.
