A Look At 5 Communication Services' Stocks – SWM, SXL, OML, VRL, MAQ

The communications services sector comprises of entities offering communications services mainly via cellular, fixed-line, wireless, fiber optic cable network and so forth.

In the contemporary world, digital transformation, which is an integration of digital technology in all sections of a business is an essential requirement. The telecommunications industry is witnessing a rapid growth because of the demand for the telecom related services. It has gone through various transformations leading to increase in competitions in the industry.

In this article, the five companies, being discussed are engaged in the business related to the communication services.

The S&P/ASX 200 Communication Services (Sector) last traded on 14 November 2019, up 1.91 % or 24 points from its prior close. Simultaneously, the Australian Benchmark S&P/ASX 200 index last traded at 6735.1, up by 36.7 points or 0.5% compared to its last close.

Let’s go through the recent updates on the five stocks under discussion as follows:

Seven West Media Limited (ASX: SWM)

Seven West Media Limited is one of Australia’s leading integrated media entities, with presence in newspaper, television, magazine and online publishing. SWM is home to many leading media businesses in Australia.

AGM Results and Trading Update

On 13 November 2019, the company held its AGM or Annual General Meeting on 14 November 2019 and released a copy of the presentation and trading update made at the AGM. The company highlighted that:

• Metropolitan tv market has been projected to be down mid-single digits for the fiscal year.
• The market is difficult to forecast but further smoothness is expected in the second quarter.
• The company anticipates underlying Earnings Before Interest and Tax (EBIT) guidance of $190 million to $200 million, including the impact of AASB 16.
• The SWM’s Seven Network rose to a 39 per cent revenue share in Q1 FY20 period, but during a down market.

The below-mentioned resolutions were passed during the Annual General Meeting:

• To elect Ms Colette Garnsey OAM as a Director
• To re-elect Mr John Alexander as a Director
• To re-elect Mr Ryan Stokes as a Director
• Remuneration Report
• Grant Performance Rights to CEO and MD

The Financial Performance of the company can be viewed here

Stock Performance

The stock of SWM last traded at $0.42 on 14 November 2019, dipping by 1.176 per cent from its previous close. The company has approximately 1.51 billion outstanding shares and a market cap of $640.91 million. SWM’s 52 weeks low and high value of the stock is at $0.350 and $0.780 respectively. The stock has generated a negative return of 16.67 per cent in the last six months and a negative return of 19.81 per cent on year to date basis.

Southern Cross Media Group Limited (ASX: SXL)

Southern Cross Media Group Limited is the biggest entertainment company in Australia with the ability to reach approximately 95 per cent of the Australian population through various media channels.

Results of Annual General Meeting

On 24 October 2019, the company has announced the results of the AGM, the below mentioned resolutions were passed during the Annual General Meeting:

• Re-election of Glen Boreham as a Director
• Re-election of Melanie Willis as a Director
• Approval of LTI Grant to Managing Director
• Adoption of Remuneration Report

On 15 October 2019, the company provided the trading update and earnings guidance for six- month closing 31 December 2019, which can be viewed here

Stock Performance

The stock of SXL last traded at $0.890 on 14 November 2019, falling by 0.559 per cent from its previous close. The company has approximately 769.01 million outstanding shares and a market cap of $688.27 million. SXL’s 52 weeks low and high was noted at $0.805 and $1.430 respectively. The stock has generated a negative return of 26.03 per cent in the last six months and a negative return of 9.14 per cent on year to date basis.

oOh!media Limited (ASX: OML)

oOh!media Limited is a leader among the media company in Australia and New Zealand regions. The company builds engagement between people and brands by an unmissable world of physical and digital Out of Home advertising solutions. OML solutions consists of oOh! Road, oOh! Retail, oOh! Fly, Locate by oOh! and Commute by oOh! and so forth.

Becoming a Substantial Holder

On 8 November 2019, the company released a notice that Perennial Value Management Limited became the substantial holder of the company with 5.30 per cent of voting power and 12,846,705 number of securities.

Appointment of Non-Executive Director

On 29 October 2019, the company notified the market on the appointment of Mr David Wiadrowski as an independent non-executive director with effect from 29 November 2019. Mr Wiadrowski is also appointed as the Chair of the company’s audit, risk and compliance committee and will stand for election in the next AGM in May 2020.

The Financial Performance of the company can be viewed here

Stock Performance

The stock of OML last traded at $2.940, up by 2.797 percent from its last close, as on 14 November 2019. The company has approximately 242.39 million outstanding shares and a market cap of $693.22 million. The OML’s, 52 weeks low and high value is at $2.290 and $4.740 respectively. The stock has generated a negative return of 20.78 per cent in the last six months and a negative return of 15.88 per cent on year to date basis.

Village Roadshow Limited (ASX: VRL)

Village Roadshow Limited, was established in 1954, and has businesses in theme parks, cinema exhibition, film and DVD distribution etc. Village Roadshow is headquartered in Melbourne, Australia and is listed with ASX since 1987.

Results of Annual General Meeting

On 1 November 2019, the company announced the results of the AGM, and the below mentioned resolutions were passed during the Annual General Meeting:

• 2A Re-election of Mr Graham W. Burke as a Director
• 2B Re-elect Ms Jennifer Fox Gambrell as a Director
• 2C Election of Mr Peter C. Tonagh as a Director
• 3 2019 Remuneration Report
• 4 Renewal of Non-executive Directors' Share Plan
• 5A Issue 200,000 ordinary shares to Julie Raffe
• 5B Financial assistance be given to Julie Raffe

Financial Highlights for FY 2019

On 29 August 2019, VRL released its annual report for the period closed 30 June 2019. Below are a few highlights from the same:

• The group’s EBITDA increased by 37 per cent compared to the previous year same period.
• Substantial improvement in operating cash flow from $21.4 million in FY18 to $82.4 million in FY19.
• VRL implemented cost reduction program in FY19 period and expects to deliver savings (annualised) of more than $10 million throughout the group.
• Solid balance sheet with leverage decreased to 1.76x from 3.73x in FY18.

Stock Performance

The stock of VRL last traded at $3.080, down by 0.965 percent from its last close, as on 14 November 2019. The company has approximately 195.16 million outstanding shares and a market cap of $606.93 million. VRL’s 52 weeks low and high value of the stock is at $2.260 and $3.900 respectively. The stock has generated a negative return of 18.80 per cent in the last six months and a positive return of 10.28 per cent on-year to date basis.

Macquarie Telecom Group Limited (ASX: MAQ)

Macquarie Telecom Group Limited, is Australia’s data centre, cloud, cybersecurity and telecom entity for government clients and mid-large business. The company’s business includes Macquarie Telecom, Macquarie Cloud Services, Macquarie Government.

Recently, the company announced the date of Annual General Meeting to be held on 29 November 2019.

Change in Substantial holdings

On 25 September 2019, the company released a notice of change of interests of substantial holder, National Nominees Ltd ACF Australian Ethical Investment Limited in the company, effective 23 September 2019. The substantial holder now has a voting power of 7.17 percent and 1,524,205 person’s votes from previously held 8.37 percent voting power and 1,754,367 person’s votes.

Stock Performance

The stock of MAQ last traded at $23.380 on 14 November 2019, up by 2.096 per cent from its previous close. The company has approximately 21.27 million outstanding shares and a market cap of $487.11 million. The stock’s 52 weeks low and high is at $18.520 and $23.480 respectively. The stock has generated a return of 15.25 per cent in the last six months and a positive return of 4.71 per cent on-year to date basis.

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