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Highlights:
- Media and entertainment stocks are witnessing a boost on ASX, thanks to the digital boom post COVID-19.
- Growth in digital media and a decline in print media revenues are anticipated to be continued in near future, say reserach reports.
- Media stocks on ASX - REA, TAH, SEK, and NWS are garnering investors’ attention.
Australian Media and entertainment industry has acquired a different form during and after the COVID-19 induced pandemic. Technological progress, evolving consumer needs and behaviours have changed the way media and entertainment have been providing their services.
Digital media engagement has become stronger during these trying times and several media reports have suggested that the Australian entertainment industry is anticipated to be worth over AU$40 billion by 2025. Reports also say that the growth in revenue from digital entertainment is likely to surpass print media.
In this backdrop, today we are looking at some big ASX-listed entertainment stocks REA Group Limited (ASX:REA), Tabcorp Holdings Limited (ASX:TAH), Seek Limited (ASX:SEK) and News Corporation (ASX:NWS) and their pace in the digital media world.
REA Group Limited (ASX:REA)
Real estate advertising company, REA Group Ltd’s share price opened in red today (29 June). The shares are quoted at AU$111.110 apiece, down 2.935% at 10:12 AM AEST.
In its latest quarterly results, REA Group’s media revenues witnessed strong YoY growth. Even its Indian business segment delivered strong revenue growth derived from its digital advertising business Housing.com. In fact, REA group’s core strategy is to build the next gen marketplace and become a leading property data insights provider. For this, the company has acquired many digital businesses across the globe, including, prop tiger, smartline and housing.com.
On the ASX, REA share price is down over 33% in last six months, but it has gained more than 67% in last five years.
Tabcorp Holdings Limited (ASX:TAH)
Entertainment and gambling business, Tabcorp Holdings Limited, opened 1.157% lower at AU$1.067 per share on the ASX today.
Tabcorp shared an investor presentation on 28 June 2022, stating that ‘things are changing’ at the company. At present, Tabcorp has digital and in-venue presence. However, the company is now shifting its focus on leveraging its core betting ecosystem for achieving digital growth across channels. It is trying to move faster with digital and data capabilities.
Meanwhile, in last six months TAB shares have gained over 9%. TAB has registered a 10.31% growth in last thirty days of trade.
Seek Limited (ASX:SEK)
Operator of online employment classifieds, Seek Limited’s share price was 1.943% down at AU$21.190 apiece at 10:15 AM AEST on the ASX.
In its half yearly results for FY22, released in February, Seek Limited, had reported a 9% growth on previous corresponding period (pcp) in its online revenue. Reportedly, technology and behavioural shifts from remote working and upskilling needs were driving the online education migration. Seek also claimed to be well positioned to capture and apply its unique datasets for value creation for job seeking candidates and hirers.
As of date, While SEK share price has dipped over 36% in six months, however it has gone up 6.72% in last five trading days.
News Corporation (ASX:NWS)
Another noteworthy, diversified media company is, News Corporation. NWS share price opened 1.7% lower at AU$23.040 per share today.
News Corporation’s business ranges into a wide array of media and digital content services over its diverse distribution platforms. In its third quarter results for FY22, issued in May, News Corp reported continued gains in digital subscription and advertising business. Its digital real estate services segment saw double digit quarterly revenue growth. Reportedly, the company benefitted from the rebound in the advertising market and strong digital subscriptions.
However, as of date, NWS share price is down about 27% over last six months.
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