2 S&P/ASX 200 media stock gainers and 2 losers

Two S&P/ASX 200 media stocks keep hitting the gains list while two industry peers look to be firmly stuck in the losses.

Southern Cross Media Group Ltd (ASX: SXL)

On the S&P/ASX 200 gains list this week is broadcast media provider Southern Cross Media Group Ltd up 2.93% to close trade on April 4 at $1.05.

Shares in Southern Cross have been volatile over the last year, dropping from a share price of $1.36 at this time last year.

Investors rallying behind Southern Cross this week are no doubt buoyed by news yesterday Nine Entertainment Co Holdings Ltd (ASX: NEC) and Southern Cross Austereo have boosted their partnership, with Southern Cross taking on representation of Nine’s local television sales in the Northern NSW area.

The arrangement will begin on July 1, 2018 building on a broader affiliate agreement between Nine and Southern Cross – Southern Cross already represents Nine for national sales in the Northern NSW.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Shares in Nine Entertainment Co Holdings Ltd have soared in the last 12-months in comparison to its ASX-listed media peers, with shares rising 78% from a $1.24 share price at this time last year to today’s $2.19 open.

Nine hit a 52-week share price high on March 19 when it reached $2.39, but Credit Suisse downgraded the stock in late March from outperform to neutral despite increasing FY18 earnings estimates by 2.9% and FY19 estimates by 8.1%.

Nine has been in the news this week for netting a five-year broadcasting deal with Tennis Australia for rights to all premium tennis played in Australia from 2020 to 2024.

The tennis deal includes exclusive live and catch-up rights plus subscription television, streaming and mobile and social media rights, which should prove lucrative for Nine who will pay $300 million for the 5-year deal.

While Southern Cross and Nine dominate the gains list, media cousins Fairfax Media Limited (ASX: FXJ) and Seven West Media Ltd (ASX: SWM) are sitting firmly in the losses pile.

Fairfax Media Limited shares have tracked downwards steadily in the last 12-months with the most notable ditch in November 2017 when the media stalwart cast off Domain Holdings Australia Ltd (ASX: DHG).

Fairfax shares opened down again today at 66c per share.

Rumours are swirling private equity buyers like Anchorage Capital Partners has its eye on Fairfax and News Corp (ASX: NWS) after Fairfax received bids from TPG Capital and Hellman & Freidman last year, with Anchorage said to be most interested in Fairfax’s Australian Community Media division.

Fairfax shareholders who have suffered through the worst with the stock may hold on to see if this rumour comes to pass with the hope the share price will be, at least momentarily, pushed up by any takeover moves.

Seven West Media was down 2.8% on April 4 at 52c per share and looks to stay in the red again today as shareholders lament the good times 12-months ago when the share price was up at 79c per share, rising to 85c per share last August.

Seven West has today launched a revamp of The West Australian’s website in a bid to boost traffic and provide better alignment with 7 News Perth video footage.

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