These three S&P/ASX 200 media stocks have been dominating the gains list this week.
Nine Entertainment Co Holdings Ltd (ASX: NEC)
Shares in Australian media entertainment group Nine Entertainment Co Holdings have shot up 5.5% to $2.39 at the time of writing – not far off the company’s 52-week high share price of $2.51 on May 3.
News site Mumbrella today announced Nine had left commercial television rivals behind to nab 18.8% of main channel share in the latest ratings results.
Nine shares have performed well over the last 12 months, dominating other ASX-listed media stocks with the company announcing earlier in the month strength generated by its 9 Now business model, uptake of Stan, and strong ratings momentum.
Nine scored sought-after tennis rights back in March which saw its share price zoom upwards, only to be knocked back down to reality when Seven West Media Ltd (ASX: SWM) signed a $1 billion deal with Cricket Australia over broadcasting rights for the next six years.
It’s a competitive sector, but Nine has certainly asserted itself as the one to beat so far this calendar year, and its success looks set to continue in the minds of investors at least.
Southern Cross Media Group Ltd (ASX: SXL)
Shares in media provider Southern Cross Media Group have dropped back 1.9% to $1.23 in morning trade today, despite spending most of yesterday at the top of the S&P/ASX 200 gains list with its share price closing May 30 at $1.26.
One of the smaller listed media players, Southern Cross has a stronghold in the radio segment but delivered disappointing half-year results in February that saw its share price dive, reporting net profit down 21% to $38 million with revenue also dropping 5% to $333 million and EBITDA also on the decline.
Earlier this month, Southern Cross revealed plans to monetise audiences by exploring “non-audio entertainment in growth markets” with a focus on the rapidly growing platform of podcasting which the US market has forecast will grow to over $500 million by 2020.
Southern Cross still has some strength in its regional radio base with annual revenue on the uptick since 2013 and expected to continue to climb with regional TV also performing reasonably well.
Shareholders should keep an eye on Southern Cross’s fee-for-service model as part of its digital media agency going forward.
oOh!Media Ltd (ASX: OML)
Out-of-home advertising company oOh!Media Ltd spent much of Wednesday on the S%P/ASX 200 gains list with shares closing at $5.30 on May 30, only to drop back down almost 1% today to $5.25.
Things seem to be tracking along nicely for oOh!Media who last month submitted a non-binding indicative offer to HT&E Ltd (ASX: HT1) in relation to its Adshel business for an acquisition price of $470 million.
HT1 rejected the offer only to be propositioned this month by APN Outdoor Group Ltd (ASX: APO) for Adshel for a headline enterprise value of $500 million, but no agreement has yet been reached.
oOh!Media’s annual general meeting earlier this month revealed digital revenue now accounted for 60% of total revenue with 13.1% revenue growth driven by portfolio diversification and underlying NPAT up 35.5% to $33.1 million.
oOh!Media has a strong balance sheet and investors will watch whether or not the roll out of its data analytics platform delivers the desired results.
It's been a nail-biter of a reporting season here in the first half of 2018.
But the real action, in my opinion, is what companies are doing with dividends.
What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.
Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.