5 Media and Online Sector Stocks under Pressure

  • Oct 12, 2018 AEDT
  • Team Kalkine
5 Media and Online Sector Stocks under Pressure

Media was under selling pressure as well, with most of the stocks under the radar of selling. Anyway, the sector had faced terrible few years in light of online piracy. Some of the stocks coming under pressure are discussed in this article.

Domain Holdings Australia Limited (ASX: DHG) - Down 13.43 percent, the stock of Domain holding traded at $2.770 near its 52-week low, the stock has undergone a performance change of 4.58% over the past 6 Months. For the 2018 financial year, on a pro forma basis excluding significant items, Domain reported revenue growth of 11.5% to reach $357.3 million on prior year; an EBITDA growth of 12.5% to $115.7 million demonstrates the strength of Domain as a separately listed company. The company hence reported a Net profit growth of 7.7% to $52.9 million. Earnings per share growth of 7.3% to 9.2 cents was also witnessed by the company; and hence a dividend of 4 cents per share was declared, 70% franked, bringing total dividends to 8 cents per share, 50% franked.

Nine Entertainment Limited (ASX: NEC) - Down 12.38 percent, the stock of Nine Entertainment traded at $1.840, the stock has undergone a performance change of 48.41% over the past 12 Months. NEC reported group EBITDA of $257 million, up 25% on FY17, driven by a 6% increase in the group revenues. Compared to the FY17 result, Net Profit after Tax and before Specific Items increased by 27% to $157 million. Down from $225 million 12 months earlier, Net Debt at 30 June 2018 was $121 million. During the year, $87 million was returned to shareholders through dividends. $100 million was invested in the business for growth and expansion. positive momentum recorded across all of their assets and other aspects of the business. 

Fairfax Media Limited (ASX: FXJ) - Down 11 percent, the stock of Fairfax Media traded at $0.670, the stock has undergone a performance change of 22.33% over the past 12 Months. Majorly driven by growth at Domain, Macquarie Media, Australian Metro Media and lower corporate costs, with an increase on the prior year, the Fairfax Group delivered operating EBITDA of $274.2 million, for the 2018 financial year. Lower than the prior year group revenue of $1.684 billion was decent. With earnings per share of 5.4 cents, net profit of $124.9 million was 12% lower. However, bringing total dividends to 2.9 cents per share, 68.95% franked, the board paid a dividend of 1.8 cents per share, 50% franked.

Seven West Media Limited (ASX: SWM) – The shares were down 9 percent, the stock of Seven West Media traded at $0.855, the stock has undergone a performance change of 46.87% over the past 12 Months. Company delivered underlying EBIT of $236 million, which is at the upper end of the $220-240 million guidance, over the past year EBIT grew 8% to $56 million. After the $40 million AFL uplift and spectrum charge group costs were down $21 million. The net debt reduced to less than $635 million which is below the target of $650 million, the leverage ratio is currently 2.3 times which is a bit on a higher side. Operating cashflow of $227.9 million was recorded by the group, Capex was $28.8 million, which is below the typical $30 - 40 million range.

REA Group Limited (ASX: REA) - Fell 2.6 percent the stock of REA Group traded at $75.500, the stock has undergone a performance change of 13.22% over the past 12 Months. The company’s revenue increased by 20% in FY18 to $807.7 million. Driving the EBITDA to a range of $463.7 million which is up by 22%. The Net Profit After Tax is at $279.9 million up by 23% helping the company to achieve and provide full year dividend of $109.0c which is up by 20%. The reported net profit was of $253.1 million, and the cash and cash equivalents at end of the financial year of $115.841 million representing a healthy balance sheet with no debt. REA’s strategy is made up of three pillars: lifestyle and financial services, property advertising, and global.

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