Figure 1: ANZ media share price changes November 2024

Key developments

Overall, the media sector in Australia and New Zealand have struggled to maintain their position over the last year with the deterioration of economic conditions. Economic growth is sluggish relative to previous years, and the impact on advertising continues to depress valuations for ad-dependent stocks.

News Corp 

News Corp’s stock rose 10.4% over the last month, with the company releasing its fiscal 2025 first quarter financial results which showed strong performance. First quarter revenues rose by 3% year on year to US$2.58b, while net income for the quarter was US$144m, compared to $US58 million in the prior year. REA Group, its subsidiary, posted record revenues for the quarter at US$318m which was a 22% increase compared to the prior year. The company’s CEO, Robert Thomson, commented on the US election result and AI in his address.  

Southern Cross Media

Southern Cross Media’s stock rose 5.8% over the last month, with the company releasing the CEO’s address from the 2024 Annual General Meeting. The company revealed its FY25 first half revenues of $122.5m, which was 1.5% higher than the prior year. The address highlighted the challenging macro conditions and that it has positioned itself for ‘positive operating performance’. The address also emphasised the company’s focus on audio and the strong performance of LiSTNR, its subsidiary. On Southern Cross Media’s audio segment, the CEO mentioned ‘it is our focus. It is our strength’.

GTN

GTN’s stock rose 13.8% in the last month, with the company releasing the presentation from the company’s 2024 Annual General Meeting. FY25 performance so far was included, with revenue for Jul–Oct FY25 increased by over 5% year-on-year, supported by strong growth in Australia, Brazil, and the UK, although Canada slightly underperformed. Management implemented cost efficiencies and restructured the drone business, exiting operations in Canada and reducing fixed costs in Australia. However, short sales cycle lead times and market conditions limit future revenue visibility.

Figure 2: ANZ media valuation multiples November 2024

About Venture Insights

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