The COVID-19 pandemic-induced lockdowns caused people to spend more time at home, which acted as a catalyst to increased consumption of online content, positively influencing the broadcast and media technology market. Furthermore, the increasing penetration of on-demand content, the rising popularity of video streaming and OTT platforms, growing adoption of next-gen linked devices, and digital advertising are expected to propel the industry’s growth for the foreseeable future.
The global broadcast and media technology market stood at $41.40 billion in 2021 and is expected to grow at a 6.9% CAGR to $62.12 billion by 2027. Furthermore, broadcasting companies are investing in technological advancements to provide enhanced broadcasting services to their customers, which should aid the market’s growth.
Sirius XM Holdings Inc. (SIRI)
New York City-based SIRI is an audio entertainment company that provides satellite radio services on a subscription basis in the United States. It operates two audio entertainment segments, Sirius XM; and Pandora.
On March 10, 2022, SIRI announced an exclusive distribution and sales agreement with reVolver Podcasts, a leading multicultural, audio-on-demand content creator and publisher in the U.S. “By working with reVolver, we’re thrilled to expand our offerings even further with an incredible lineup of multicultural programming that our audience and our advertisers are craving,” said Mike Reid, Vice President of Multicultural at SXM Media.
In January, SXM Media, the combined sales organization of SIRI, announced the introduction of AudioID powered by AdsWizz, a first-to-market listener identity solution offering marketers new avenues to reach, target, and connect with consumers at scale. AudioID is expected to help provide an improved consumer experience across multiple platforms and a better way for brands to buy audio advertising. Thus, it should prove beneficial for the company.
For its fiscal fourth quarter, ended Dec. 31, 2021, SIRI’s revenue increased 4.2% year-over-year to $2.28 billion. Its income from operations grew 194.6% from its year-ago value to $476 million, while its net income for the quarter stood at $318 million, reflecting a 147% increase year-over-year. Its net income per common share was $0.08, up 150% from the prior-year quarter.
The Street expects SIRI’s revenue for the current quarter, ending March 31, 2022, to come in at $2.15 billion, indicating a 4.5% increase year-over-year. The company’s EPS is expected to grow 61.7% year-over-year to $0.08 in the same period. It has a notable earnings surprise history; it topped Street EPS estimates in three of the trailing four quarters.
Over the past six months, the stock has gained 5.2% in price to close yesterday’s trading session at $6.29. it has gained 4.3% over the past month.
SIRI’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which translates to Buy in our POWR ratings system. The POWR ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
SIRI also has a B grade in Quality. It is ranked #2 of 6 stocks in the A-rated Entertainment – Radio industry.
Beyond what is stated above, we have also rated SIRI for Momentum, Value, Sentiment, Stability, and Growth. Get all the SIRI ratings here.
News Corporation (NWSA)
Based in New York City, NWSA is a media and information services company that is focused on creating and distributing content for consumers and businesses worldwide. It operates in six segments: Digital Real Estate Services; Subscription Video Services; Dow Jones; Book Publishing; News Media; and Other.
In late February, NWSA announced the completion of its acquisition of Oil Price Information Service (OPIS), a highly profitable provider of growing digital data, analytics, and insights. The company is also planning to close the acquisition of the Base Chemicals business from S&P Global and IHS Markit in the coming months. These acquisitions are expected to have a positive financial impact and should help NWSA expand its information services to new industries and segments.
NWSA’s total revenues increased 12.6% year-over-year to $2.72 billion in its fiscal second quarter, ended Dec. 31, 2021. Its net income attributable to NWSA grew 1.7% from the year-ago value to $235 million, while the net income per share improved 2.6% year-over-year to $0.40. In addition, its EBITDA was $586 million, reflecting an 18% increase compared to $497 million in the prior-year quarter.
The $0.16 consensus EPS estimate for its fiscal third quarter, ending March 31, 2022, represents a 77.8% improvement year-over-year. The $2.49 billion consensus revenue estimate for the same quarter represents a 6.5% increase from the same period last year. The company also surpassed the consensus EPS estimates in each of the trailing four quarters.
NWSA has gained 4.2% in price over the past five days to close the last trading session at $22.
NWSA’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system.
NWSA is rated A in Sentiment. Among the 20 stocks in the Entertainment – Media Producers industry, NWSA is ranked #1.
To see additional POWR Ratings for Growth, Value, Quality, Momentum, and Stability for NWSA, click here.
Grupo Televisa, S.A.B. (TV)
Headquartered in Mexico, TV is a media company operating through four segments Cable; Sky; Content; and Other Businesses.
On Feb. 1, 2022, TV announced the completion of its transaction with Univision Holdings II, Inc. to establish the world’s leading Spanish-language media and content company, TelevisaUnivision, Inc. With a comprehensive Spanish-language content offering, the company is expected to gain increased popularity in the world’s Spanish speaking markets.
TV’s net sales increased 3.7% from the prior-year quarter to MX$28.81 billion ($1.41 billion) in the fiscal fourth quarter, ended Dec. 31, 2021, while its operating income came in at MX$9.83 billion ($0.48 billion), reflecting a 68.4% increase year-over-year.
TV’s revenue for the fiscal year ending Dec. 31, 2022, is expected to come in at $3.68 billion. Its EPS is expected to increase 32.1% year-over-year to $0.63 for the current year.
TV’s shares have gained 13.4% in price year-to-date to close the last trading session at $10.63. The stock has gained 7.3% in price over the past five days.
It is no surprise that TV has an overall B rating, which equates to Buy in our POWR Ratings system. TV is ranked #1 of 11 stocks in the Entertainment – Broadcasters industry.
In addition to the POWR Rating grades I have just highlighted, one can see the TV ratings for Growth, Momentum, Stability, Value, Quality, and Sentiment here.
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SIRI shares were trading at $6.42 per share on Tuesday afternoon, up $0.13 (+2.07%). Year-to-date, SIRI has gained 5.28%, versus a -5.34% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...
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