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.

ARN Media

ARN Media’s shares rebounded over 14% during the last month, with the stock finding its bottom at 55 cents per share early in September, its lowest point in the last year. The stock has been punished by poor performance, most recently with its 2024 half yearly results which featured a fall in NPAT (-19% prior corresponding period NPAT growth from $10.4m of NPAT) and the slashing of the dividend from 3.5cps in HY23 to 1.2cps in HY24.

Southern Cross Media

Southern Cross Media’s stock continued its decline, falling over 8% in the last month despite any price sensitive company announcements. This suggests investors are continuing to react to the company releasing its full year FY24 results in late August which entailed -1% YoY revenue growth from $499.4m of revenue and -14% YoY EBITDA growth from $66.2m of EBITDA. The current share price of 47 cents per share is its lowest point over the last year.

NZME

NZME’s stock rose 10% over the past month, with the company releasing 2024 half yearly results in late August which featured a 3% prior corresponding period revenue growth from NZ$171.3m of revenue, and -4% prior corresponding period NPAT growth from NZ$1.9m of NPAT. Investors may have been pleased with the company’s successful digital strategy, making up 31% of the company’s revenues and growing YoY. It highlighted that its digital subsidiary OneRoof recorded a 63% YoY increase in digital listings revenue.

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