Top Story : Media Prima – Strong start for TV and print adex Outperform
Company Update
♦ According to Nielsen Media Research (NMR), 1Q10 adex for Media Prima’s TV channels jumped 34.6% yoy while the print media saw gross adex grow by 7.5% yoy. For the TV segment, 1Q adex growth was led by TV9 (+62% yoy) while for the print media, the growth mainly came from Harian Metro (18% yoy). Generally the stronger TV adex growth is consistent with past trends, where we note that TV adex has historically had a higher leverage to GDP growth, vis-à-vis print adex.
♦ For FY09, average discounts for the TV segment was 68.8% (FY08: 61.6%) as the weaker economic conditions then meant that higher discounts were required to secure commitments from advertisers. For FY10, management expects discounts for the TV segment to average around the 65%-level as economic conditions improve. The bulk of the increase in discount should flow down to Media Prima’s bottomline.
♦ NSTP’s print adex market share grew to 31.5% in 1Q10 from 29.2% in 1Q09. This was largely due to the growth in adex from the malay dailies, partly offset by NST’s market share loss. Management, however, remains positive on the adex outlook for NST given improving economic conditions and major sporting events in FY10.
♦ We have revised up our FY10 and FY11 ad revenue growth projections for the TV segment to +8% and +5% respectively and for print segment, to +4.9% and 4.6% respectively. Overall, our FY10-11 net profit forecasts have been raised by 9.9%-13.5%.
♦ Our indicative fair value has been revised upwards to RM2.55 (fully diluted) from RM2.23 based on unchanged target FY10 PER of 15x. We reiterate our Outperform call on the stock.
RHB Equity 360° (Media Prima; Technical: KNM)-28/04/2010
No comments:
Post a Comment