DASHBOARD: Media valuation comps for May 2023

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 in Australia and New Zealand are down over the last year, owing to the deterioration of economic conditions, with sticky inflation and rate rises still in the pipeline. Overall, economic growth is expected to be sluggish relative to 2022, but the impact on advertising may ease if unemployment stays low.

News Corp

Investors responded well to News Corps third quarter results for fiscal 2023, which highlighted News Corp’s outperformance and resilience relative to other media companies. This is despite decreases in Revenue, EBITDA, and Net Income compared to the prior year.

oOH Media

oOh Media stock crashed around 24% in one sitting on May 3rd, after a presentation released by the company revealed that media revenue over April was “particularly soft, pacing at -10 vs pcp [the prior corresponding period]”. Despite some positive news in the presentation, investors focused this decline and punished the stock, down around 26% in May.

Southern Cross Media

SCM continued to decline in May, down around 10% for the month. Despite hiring a new CEO and CCO, investors continued to dump the stock, which is down around 30% in 6 months.

About Venture Insights

Venture Insights is an independent company providing research services to companies across the media, telco and tech sectors in Australia, New Zealand, and Europe.