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BKG - Booktopia Group

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Booktopia Group is the largest Australian-owned online book retailer by market share with revenue in FY2020 of $165.8 million. Over 85% of the items the Booktopia Group sold in FY2020 were books, however it also sells eBooks, DVDs, audiobooks, magazines, maps, calendars, puzzles, stationery and cards. The Sydney based business was launched in 2004. It sells its products through the websites www.booktopia.com.au and www.angusrobertson.com.au and distributes product from its modern Distribution Centre located in Lidcombe, Sydney.

Booktopia Group's success in online book retailing has been driven by its capabilities in information technology, logistics, innovation, internet marketing, product knowledge and online retail.

The Company's revenue has grown at a CAGR of approximately 26.4% from FY2015 to FY2020 and Booktopia Group has made the AFR/BRW Fast 100 8 times between 2009 to 2017.

Since inception, Booktopia Group has sold over 35.5 million items to more than 5 million customers across Australia and New Zealand.

It is anticipated that BKG will list on the ASX during December 2020.

Booktopia - Books, Online Books, #1 Australian online bookstore, Buy Discount Books, eBooks and DVDs from Australia and the world.

Booktopia - buy online books, DVDs and Magazine Subscriptions from Australia's leading online bookstore with over 4 million titles. Booktopia offers thousands of eBooks, daily discounted books and flat rate shipping of $7.99 per online book order.
www.booktopia.com.au www.booktopia.com.au
 
How did we go on first 2 days on market? ($2.30 Issue Price)

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still holding up; closed at $2.80


Initial broker coverage of Booktopia suggests shares in the recently-listed online retailer may have a way to run. In its initial coverage of the company, Morgans rated the stock as an "add " with a target price of $3.17.
"We see Booktopia as a lower risk option for investors wanting to continue to play the online retail penetration story, trading at a reasonable discount to online/e-commerce peers," Morgans' Anthony Porto said.
Among the other factors supporting the online bookseller are the strength of operating metrics such as traffic growth, conversion rates, and gross margins, Mr Porto said.
Click to expand...

Shaw and Partners, joint lead managers of the IPO, has a 12-month price target of $3.85 (as you'd expect)
 
Booktopia continued to experience strong demand for its products throughout the Christmas period with the recent investment in additional automation and the increased capacity of its distribution centre providing the foundation for a record month and a record half year.

Unaudited results for the six months to December 31, 2020, include;
• Strongest December in Booktopia’s 16-year history with approximately 728,000 units shipped during the month and 4.2 million units shipped in the first half (H1 FY20: 3.0 million);
• 52% increase in revenue to $113 million (H1 FY20: $74.5 million); and
• 506% increase in EBITDA (adjusted for IPO costs) to $8.0 million (H1 FY20: $1.3 million)

the cheeky AFR headline was : Booktopia rivals Amazon as online book sales soar

pushing to $3.00 toay
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"Booktopia rivals Amazon" ha ha ha :roflmao:

Looked for a book over the weekend. Fishpond + postage was cheaper than Booktopia.
I was disappointed to see that the ebook was no cheaper than the hardcopy.

The downside is, now all the ASF ad's are related to book sellers

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No, I didn't buy the Creative Kittens book. Honestly.
 
"Spending on books is up double digits, maybe 15% and that's true around the world… We've seen people turn to books as a form of entertainment, as an escape. People have gotten time back that they used to spend maybe commuting or traveling. There's definitely this renaissance in book reading and book interest”
Brian Murray, CEO, HarperCollins Publishing LLC
 
Dona Ferentes said:
How did we go on first 2 days on market? ($2.30 Issue Price)
Click to expand...
and the first 20 months?

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Booktopia’s sales rose 7.5 per cent to $240 million, almost double those in 2019, books shipped increased by 4 per cent and average order value and average customer spend went up 6 per cent.

However, heavy investment in marketing and fulfilment centre staff led to higher costs per unit. Underlying earnings fell 55 per cent to $6.2 million and the group reported a net loss of $15.1 million.

Former CFO Geoff Stalley, who is acting CEO after the “removal” of founder Tony Nash, is culling staff and cutting costs “to better align the cost base with the future growth trajectory”.

Stalley says that while online shopping has been widely accepted, consumer expectations have changed and it is becoming increasingly expensive to acquire customers through digital channels, making physical footprints more important.
 
Dona Ferentes said:
and the first 20 months?

View attachment 146258


Booktopia’s sales rose 7.5 per cent to $240 million, almost double those in 2019, books shipped increased by 4 per cent and average order value and average customer spend went up 6 per cent.

However, heavy investment in marketing and fulfilment centre staff led to higher costs per unit. Underlying earnings fell 55 per cent to $6.2 million and the group reported a net loss of $15.1 million.

Former CFO Geoff Stalley, who is acting CEO after the “removal” of founder Tony Nash, is culling staff and cutting costs “to better align the cost base with the future growth trajectory”.

Stalley says that while online shopping has been widely accepted, consumer expectations have changed and it is becoming increasingly expensive to acquire customers through digital channels, making physical footprints more important.
Click to expand...

Dona Ferentes said:
Booktopia’s sales rose 7.5 per cent to $240 million, almost double those in 2019, books shipped increased by 4 per cent and average order value and average customer spend went up 6 per cent.

However, heavy investment in marketing and fulfilment centre staff led to higher costs per unit. Underlying earnings fell 55 per cent to $6.2 million and the group reported a net loss of $15.1 million.

Former CFO Geoff Stalley, who is acting CEO after the “removal” of founder Tony Nash, is culling staff and cutting costs “to better align the cost base with the future growth trajectory”.

Stalley says that while online shopping has been widely accepted, consumer expectations have changed and it is becoming increasingly expensive to acquire customers through digital channels, making physical footprints more important.
Click to expand...
I have twice looked at buying bookshops, each in different large Australian provincial cities with universities. Their demographics consisted of rich overly thin and also overly obese lady readers, pseuds, literati, students, young mothers and children and the other panoply of human life necessary for a thriving business selling papyri to the masses.

My interest in buying a bookshop was to have a break for a year or two doing something different and onsell at a small profit or at least breakeven.

Each time I demurred as there is no money in selling books. The financials were atrocious in each case and of one were so bad the owners begged me to buy it for $1 just to pay the lease on the premises.

Amazon are making a dollar and only do so because they are basically an entertainment warehouse and also have discount online stores such as bookdepository specifically to undercut outfits like booktopia online.

I also don't go for the garbage of supporting the local guy as far as booktopia goes.

Would I buy booktopia for $1 ?

I'd have to see the books.

gg
 
Ah, the discretionary dollar. As a consumer of product, I'd prefer to browse, sniff the paper, read the dust jacket, have a deep or shallow dive into the text, then close the deal and walk out with a book (aka, not judging a book by its cover nor the laudatory review). Even if it is priced at RRP and 20% above the online purveyors. But this is an infrequent almost random occurrence. So I agree with your observations that is is a marginal and esoteric business, and the remainder bins are testament to fleeting fashion, where literati meet flitterati .

Also, our neighbourhood has well-stocked Street Libraries and the luvvies working in the bookshops (our high street has 2!!) are oddballs to a being.
 
Could be due for a short-term bounce, hence entered for the June stock tipping competition...

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