DASHBOARD: Media sector financials

Dashboard containing:

• Monthly and annual share price movements for main listed stocks
• Key earnings multiples
• Forward earnings multiples vs forward growth estimates
• Share price movements tracked over last twelve months

Commentary

Key developments

Overall, media stocks on Australia and New Zealand are down over the last year, as jitters about the impact of rising interst rates have affected investors.

Despite this, there has been a share performance recovery over the last month as media companies are starting to reveal healthy 1H23 results and recession fears are fading. Economic growth is still expected to slow in 2023, but the impact on advertising may be muted if unemployment stays low.

Nine Entertainment

Nine Entertainment reported in December that its first half EBITDA is now expected to be around $370m. It commented that while the advertising market has become increasingly challenging, the operating performance of Nine’s wholly owned businesses for the first half continues to be in line with previous guidance and company expectations, with share gains and ongoing cost discipline offsetting the impact of the softening market.

Global Traffic Network

GTN shares got a big boost with the 18 January release of its 1H23 earnings, with growth in both EBITDA and revenue. The traffic information specialist saw its Australian revenues to increase 20% over the period.

Here There & Everywhere

HT&E got a big boost when it announced the sale of its 25% stake in Soprano, a CPaaS provider, for $66.3m. The deal reduces HT&E’s exposure to the IT market which has been soft all through 2022, strengthens the balance sheet, and increases scope to invest in the core media asset.

Southern Cross Media

SCA did not make any significant announcements in January, but benefitted from improving sentiment towards media stocks as recession fears receded.