Bloomsbury Digital Resources in focus Bloomsbury yesterday afternoon hosted a very well attended investor event focused on the Bloomsbury Digital Resources (BDR) platform that has been built in recent years, and the gear change it provides for the overall group in terms of revenue growth, diversification, and resilience. BDR revenues grew 41% in the last financial year, and helped drive Academic & Professional to c.40% of group profits - management are targeting another 40% organic growth for the business in the next five years. This growth, at the very least, should provide significant headroom for ongoing investment to drive future growth. A scaleable platform The platform has a number of fundamentally attractive characteristics, in our view: it allows highly repeatable direct subscription sales to customers without loss of margin to aggregators, it allows newly developed proprietary content to be easily distributed to the customer base, and for new customers to be easily added. The expanded sales infrastructure is helping drive these up significantly, yet BDR still only serves broadly half of the global higher education institutions and <20% of US schools. The platform effect works inorganically too - we expect a continuation of Bloomsbury's active M&A strategy here, acquiring relevant content sets that can be digitised and distributed more widely on it, providing significant revenue and cost synergies. The virtuous flywheel keeps going We wrote post the recent FY results (as many times before) that the virtuous flywheel in place at Bloomsbury overall continues to drive the impressive track record of performance in recent years - and BDR is a prime example of this in action, with previous investments in high quality content underpinning the growth and cash generation that can fund future opportunities (whether organic or via M&A). We believe this is not properly reflected in the current valuation at <8x CY24E EBITDA - we re-iterate our Buy and 575p target price.