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Summary
- Amid the ongoing coronavirus pandemic, the 93rd Academy Awards event was held while observing public health measures like social distancing.
- Some investors might turn their focus towards entertainment stocks as demand for entertainment products is likely rise during the pandemic.
- Corus Entertainment Inc subsidiary Corus Studios recently grabbed its biggest deal ever when it sold over 200 episodes to US streaming services provider Hulu.
Amid the ongoing coronavirus pandemic, the 93rd Academy Awards event was held while observing public health measures like social distancing. Digital media portals and television channels have been flooded with content on the awards ceremony, popularly known as Oscars, as it brings high-value entertainment many viewers.
That said, some investors might turn their focus towards entertainment stocks as demand for entertainment products is likely rise during the pandemic. So let us explore stocks of two Canadian media and entertainment companies – Corus Entertainment Inc (TSX:CJR.B) and TVA Group Inc (TSX:TVA.B).
Corus Entertainment Inc. (TSX:CJR.B)
Corus Entertainment Inc subsidiary Corus Studios recently grabbed its biggest deal ever when it sold over 200 episodes to US streaming services provider Hulu. Corus Entertainment is currently in an expansion mode and has a market capitalization of C$ 1.2 billion, as per TMX data.
1-year chart of stock performance of Corus Entertainment (Source: EODHD/Others/Thomson Reuters)
In a year, Corus stock beat the TSX 300 Composite Index in terms of growth as it grew by over 115 per cent, while the index grew by about 61 per cent. Corus’ year-to-date (YTD) growth was about 41 per cent.
The company also distributes a quarterly dividend of C$ 0.06, which holds a dividend yield of 3.98 per cent at the moment.
In Q2 FY21, the media and entertainment company’s revenues decreased by five per cent year-over-year (YoY) to C$ 358.9 million. However, its profit from the television segment increased to C$ 119.6 million in the latest quarter, up from C$ 115.5 million in Q2 FY20.
TVA Group Inc. (TSX:TVA.B)
Canadian communications company TVA Group Inc operates in broadcasting, publishing and production. Its stock has been rallying for the past few months, registering a growth of about 82 per cent in the past nine months. Its YTD stock growth stands at 18 per cent.
Last week, on April 20, TVA stock touched a 52-week high of C$ 2.5 and has since almost maintained that price.
TVA Group offers a 10.77 per cent return on equity (ROE) and its price-to-earnings (P/E) ratio is 3.3, according to the data from TMX.
1-year chart of stock performance of TVA Group (Source: EODHD/Others/Thomson Reuters)
In 2020, TVA Group's net income increased by almost 50 per cent to C$ 32.3 million, up from C$ 16.7 million in 2019. The worth of its total assets also increased to C$ 589.1 million in 2020, up from C$ 575.1 million in 2019.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
