Revenue revolution required at InfoChoice

The requirement to justify the goodwill on subsidiaries, and no doubt the desire to avoid any impairment, mean that the firm's owner, Once Pty Ltd, is projecting average revenue growth at InfoChoice of 77 per cent each year for the next four years.

While Once owns more than 99 per cent of InfoChoice following its takeover in early 2008, the latter remains listed on the Australian Securities Exchange.

InfoChoice reported next to no growth in revenue in the June 2009 half year. InfoChoice has also lost one client, Fairfax Digital, to rival MoZo (though apparently on a revenue sharing arrangement that is highly beneficial to the publisher).

Once also projected that InfoChoice must earn an EBITDA margin of 67 per cent over the next four years. InfoChoice incurred an EBITDA loss in the most recent half year.