Overall, major media stocks in Australia and New Zealand have performed fairly well despite the deterioration of economic conditions. Economic growth is sluggish relative to previous years, but the impact on advertising is now factored in.
Southern Cross Media
Southern Cross Media’s stock had another positive month rising over 7% in January. The current takeover attempt by ARN Media had been complicated by a November 2023 order from the Takeovers Panel. This order has stemmed from activist shareholder, Keybridge Capital which complained to the Takeovers Panel that an initial nearly 7% stake bought by ARN in June was acquired illegally. The order was overturned on appeal in January.
GTN’s stock fell 2% in January, correcting itself after a positive December in which it released a 1H FY24 earnings update with higher revenue and EBITDA than the prior corresponding period.
News Corp’s stock rose 3.4% in January despite no price sensitive announcements. The company’s stock currently has a FY25 EV/EBITDA of 14.7x which significantly exceeds the media cohort belows average of 7.0x.
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