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Why have media stock prices seen a jump in the last 3 months?

Most companies in the media business witnessed stock prices reaching all-time low in the last three years, but a look at the last three months shows a double-digit jump in the same

e4m by Tasmayee Laha Roy
Published: Jun 25, 2020 8:28 AM  | 5 min read
Markets

These three months of the country being in a lockdown has interestingly seen a rally in media stocks, leaving behind the last three years of all-time low performance.

This sector, comprising broadcasters, multiplex operators, and the print media has, however, been among the most impacted by the COVID-19 outbreak and the subsequent lockdown.

“In the recent run-up, media index has gained around 45% from March lows and many stocks have outperformed Nifty on account of valuations reaching multi-years low,” said Ashish Kapur, CEO, Invest Shoppe India.

According to analysts, stocks of companies like Network18, Sun TV Network, HT Media Ltd, Zee Entertainment Enterprises Ltd. have done particularly well in this lockdown period.

So why did stock prices of media companies see a spurt in the last three months?

According to Sunil Damania, Chief Investment Officer, MarketsMojo.com, “It is a risk-on environment at the moment where there is lot of liquidity in the market that is pushing up the prices including in mid-cap and small-cap and benefit of that is reflected on media companies as well. Whether these prices are sustainable or not is a big question.”

Talking of performers, Rajesh Agarwal, Research Head at AUM Capital, said: “The best performers during this period have been OTT players. In the listed space the likes of ZEE5, AltBalaji and Voot did brisk business, added a good number of subscribers, but none of them are individually listed and are part of their listed parents.”

To evaluate this lockdown performance, we took a closer look at the last three years compared to these last three months.  

ZEEL’s stock prices, for instance, saw a 64% drop in the last three years. The price of ZEEL stocks was between Rs 450 in January 2017 and Rs 288 in January 2020. In the last three months, however, the price has shot up by 48%. When the lockdown started on March 25, its stock prices stood at Rs 125.50 and now, as of June 24, it has touched Rs 174.10.

Meanwhile, Sun TV Network stocks registered a 50% drop in price in the last three years. However, in these three months the value has gone up 48%. Similarly, NDTV stocks that saw a price drop of 23% in the last 3 years saw a jump of 71% in the last three months.

TV18, which saw 8% growth in the last 3 years has witnessed an almost 200% jump in these three months. TV18 stocks that touched Rs 14.35 on March 26 was priced at Rs 36.45 on June 24. The growth in prices has been backed by the consolidation in the company.

A closer look shows broadcasters undoubtedly did better when compared to the print industry.

Print definitely has taken a bigger hit. Sharing further insights was Rohit Dokania, Vice President - Research at IDFC, “We have seen an overall drop of 70-80% in ad revenues for print and radio, whereas for television the drop in the same period would be anywhere between 40% and 50%, largely because they have a higher FMCG skew. It is not just drop in ad volumes that has led to the fall in revenues but also the drop in ad rates. This is the worst the media industry has seen and so have advertisers.”

Advertisers have also gone through phases of zero revenue and in times like these, advertisement is the first cost to be cut, and this impacted media companies adversely, Dokania added.

However, keeping with the trend of growing stock prices, print players have also seen good growth in stock prices. HT Media Ltd that saw stock prices fall by as much as 82% in the last 3 years, has recorded a 68% growth in the last 3 months.

Jagran Prakashan Ltd that saw a drop of close to 76% in prices in the last 3 years also saw a growth of 6% in the last three months. Hindustan Media Ventures Ltd, too, has joined the trend. The brand that saw an 81% drop in the last 3 years saw a 41% growth in stock prices in the last 3 months.

But should investors add media stocks to their portfolio?

Damania makes a special mention of companies that have overall good fundamentals and thus are viable options for investment. “Companies like HT Media Ltd have huge cash and cash equivalent and is thus a cash rich company, which makes it safe.” However, he suggests one must be cautious adding media stocks to their portfolio as advertisement revenues will go down further due to marketers cutting down on ad budgets. “A lot of advertising will also be directed towards social media, making the traditional media companies struggle to maintain bottom lines,” Dokania explained.

Pointing at some factors outside the COVID impact, Kapur said: “The sector might also be impacted by the anti-China sentiment resulting in Chinese brands pulling back ads. Chinese smartphone and electronic brands have been major contributors to India’s overall advertising spends in 2019. Amidst these concerns, the overall sector outlook remains bleak. Within the sector, we believe stocks of print media and multiplex operators can be avoided as their performance is likely to be hit the most. We are bullish on only selective stocks. We remain positive on Reliance-backed TV18 broadcast and other big industry leaders like Sun TV and Zee Entertainment due to their massive presence and attractive valuations.”

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Vikram Kirloskar, Toyota Kirloskar’s Vice-Chairman, no more

Media reports say he died of a heart attack

By exchange4media Staff | Nov 30, 2022 7:44 AM   |   1 min read

Kirloskar

Toyota Kirloskar Vice-Chairman Vikram Kirloskar has passed away.

According to media reports, he died of a heart attack on Tuesday. He was 64.

As per a post put out by Toyota India, his funeral will be held on Wednesday in Bengaluru.

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Adani Group gains 99.5% shares of NDTV promoter firm RRPR Holding

With the transfer of shares, Adani Group will now have 29.18% stake in the network

By exchange4media Staff | Nov 29, 2022 8:13 AM   |   1 min read

ndtv

NDTV on Monday said that its promoter firm RRPR Holding Private Limited has transferred 99.5% of its equity to Adani-owned Vishvapradhan Commercial Vishvapradhan Commercial private limited (VCPL). The move makes Adani Group's takeover of the media firm more imminent.

With the transfer of equity, Adani Group will now have a 29.18% stake in NDTV. Adani has also presented an open offer between November 22 and December 5 for an additional 26% stake in the company. 

According to exchange data, the open offer drew bids for 5.3 million shares, which is around 32% of the 16.7 million shares on offer.

VCPL, AMG Media Networks and Adani Enterprises Ltd had also proposed to acquire 1.67 crore equity shares at an offer price of Rs 294 per share.

Back in August, Adani Group revealed plans to acquire a majority stake in the network. A decade ago, NDTV founders Pranoy and Radhika Roy had taken a loan of Rs 4 billion from AMG Media Networks Limited, a company acquired by Adani.

As an offer, the media company issued warrants that allowed the group to claim a 29.1% stake in the newsgroup.

Back in August, NDTV tried to block the transfer of shares, stating that its founders have been barred from buying or selling shares in India's securities market and hence cannot transfer shares that Adani Group was trying to acquire.

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Amazon says it hasn’t fired any employee

In a submission to the Labour Ministry, Amazon has said only those employees who opted for the separation programme have been relieved

By exchange4media Staff | Nov 25, 2022 10:06 AM   |   1 min read

Amazon

Amazon India has informed the labour ministry that it has not fired any employee but relieved those who opted for the separation programme and accepted a severance package.

Representatives of the eCommerce company met the labour ministry official and denied the allegations.

Meanwhile, Amazon warehouse workers across 40 countries have decided to take out protests and walkouts on Friday.

This coincides with the Black Friday sales when online shopping is supposed to peak.

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e4m-DNPA virtual roundtables to address digital media opportunities, big-tech malpractices

The roundtables are the precursor to the e4m-DNPA Future of Digital Media Summit & Awards to be held in January

By exchange4media Staff | Nov 24, 2022 2:47 PM   |   2 min read

dnpa

The digital media ecosystem is today the bedrock of a connected world due to a massive spurt in internet and mobile connectivity. The growing popularity of online shopping, streaming services and gaming is a testament to this fact.

At this opportune time, digital news publishers – one of the major stakeholders in the digital ecosystem –have been trying their best to leverage the thriving digital landscape.

Investments in news production notwithstanding, returns have been comparatively paltry for news publishers despite revenues of tech giants like Meta and Google rising significantly in recent years.



Publishers naturally want a level playing field to ensure that efforts are adequately rewarded and investments pay back rich dividends.

To this end, exchange4media will team up with the Digital News Publishers Association (DNPA) to organise two virtual roundtable conferences with international speakers to decode the 'Publisher-Platform Relationship'.

The agenda for the talks is to discuss the challenges and opportunities in the digital media space. The speakers will also address Big Tech's antitrust practices and how news publishers can safeguard themselves.

The first roundtable will be on 25th November and the next on 9th December. The first roundtable will bring together the best minds to explore the future of digital media and its many challenges.

During the conference, speakers will share highlights of the News Media and Digital Platforms Mandatory Bargaining Code that Australia has recently adopted. They will also discuss the measures that countries across the world need to take for balancing the playing field between publishers and online platforms, creating a more sustainable foundation for the preservation of high-quality journalism.

These roundtables are precursors to the e4m-DNPA “Future of Digital Media Summit & Awards” to be held on 20th January, 2023, in New Delhi.

Following are the list of speakers:

List of speakers:

  • Professor Rodney Sims, Ex Chair of the Australian Competition and Consumer Commission (ACCC) 
  • Mr Tanmay Maheshwari,MD, Amar Ujala (Chairperson,DNPA) 
  • Mr Pawan Agarwal, Dy Managing Director, DB Corp Ltd. 
  • Dr Annurag Batra, Chairman and Managing Editor, Business World and e4m
  • Emma McDonald,Senior Policy Adviser, Minderoo Foundation
  • Mr Peter Lewis, Director,The Australia Institute
  • Mr Paul Thomas, Managing Director,Star News Group Pty Ltd
  • Dr James Meese, Senior Lecturer, RMIT University

Click here to register for the event.

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Amazon India gets labour min summon over voluntary separation programme

The ministry has received a complaint from a body of IT employees calling the recent layoffs unethical and illegal

By exchange4media Staff | Nov 24, 2022 9:25 AM   |   1 min read

Amazon

Amazon India has received a notice from the labour ministry over introducing a voluntary separation programme that was brought in as part of the e-commerce giant's global layoffs.

The summon came after the ministry received a complaint from a body of IT employees calling the layoffs unethical and illegal.

A fortnight ago, Amazon took to cost-cutting measures to increase profitability. It asked staffers in certain units to look for other profiles within the company.

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Colors Kannada tips hat to competitors on World Television Day

As part of the campaign, the channel acknowledged the work done by its competitors

By exchange4media Staff | Nov 23, 2022 1:12 PM   |   2 min read

colors

Keeping its promise to entertain audiences with the tagline of ‘Banna Hosadagide, Bandha Bhigiyagide’ Colors Kannada launched a social media outreach on World Television Day. 

Colors Kannada has taken to social media to wish its audiences on World Television Day.  The most important part of the campaign has been recognising its competition and their popular work.  Colors Kannada posted a video wishing its audiences on the transition of television in Kannada market that involved many popular shows of last decades. The theme of the campaign was related to triggering nostalgia, as a lot of memories from the past days are attached with television.

The video consisting of more than a minute includes the most popular shows of Kannada GEC including that of competitions such as Chandana, Udaya TV, ETV Kannada (Erstwhile name of Colors Kannada), Zee Kannada, Star Suvarna and from Colors Kannada.

The video showcases how Television shows in last decades emerged in engaging audiences of various age groups. The initiative of recognising the works of competition has won the hearts of audiences and wishes are still pouring in for Colors Kannada for its unbiased gesture to celebrate this special occasion.

“Breaking the barriers of competition by keeping aside the race to claim to be the number one channel and wish the competition on their fabulous works, this is extraordinary. This shows why Colors Kannada has remained the favourite entertainment channel over the years,” a netizen commented on the post.

“This post is full of nostalgia as Colors Kannada just took us back to those days of our childhood. Also, taking a step forward to include other channels in this occasion is an amazing effort,” an audience commented.  

N A M Ismail, Associate Vice President, Creative, Colors Kannada, Regional Entertainment said, “This is our genuine approach to wish everyone the World Television Day. As the transition of television shows in Kannada market involves the sweat of many people including that of competition, we have gone ahead to recognise their works beyond the competition between brands.”

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Dr Bhuvan Lall elected as member of International Academy of Television Arts & Sciences

The author and filmmaker has been engaged with the global entertainment business in Hollywood, Europe and India for over three decades

By exchange4media Staff | Nov 23, 2022 9:33 AM   |   1 min read

Bhuvan Lall

Author and filmmaker Dr Bhuvan Lall has been elected as a member of the International Academy of Television Arts & Sciences (International Emmy Awards).

In 2017, Dr Lall published the best-selling biography ‘The Man India Missed The Most - Subhas Chandra Bose’. His second biography is the extensively researched ‘The Great Indian Genius Har Dayal (2020)’. Dr. Lall’s 3rd book is ‘India on the World Stage (2021)’. His latest books are ‘Delhi in the Era of Revolutionaries 1857-1947 (July 2022)’, He is currently writing the biography of Sardar Patel.

Dr Lall has over three decades of top-level decision-making exposure in the global entertainment business in Hollywood, Europe and India. He was also the President of Beverly Hills-based MCorp - Spice Group - a multi-billion dollar Indian multinational.

Previously Dr Lall, as the Secretary-General of the Indian Broadcasting Foundation (2000-03), established the largest M&E trade body in India. He was the SVP of a TV Network (1995). He has held Board Positions in various M&E companies. Dr Lall is currently Patron of the Sardar Patel Memorial Society, UK.

In 2019, Jharkhand Rai University of India bestowed him with the Honorary Degree of Doctor of Philosophy, honoris causa (Ph.D.). He holds a First-Class Masters’ degree in Mass Communication - Film TV Radio Production from Jamia MCRC.

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