UBS cuts PT of Aussie media firm HT&E on weak outlook for top radio unit

ARN Media

16/11/2022 01:05

** UBS cuts price target on Australian media and
entertainment firm HT&E Ltd  HT1.AX  to A$1.80 from A$1.85,
retains "buy" rating
    ** HT1 on Tuesday said its top revenue-generating unit,
Australian Radio Network (ARN)'s total radio revenue saw a 7%
growth in Q3
    ** However, it warned 2H radio revenue was "pacing at low to
mid-single digit growth" due to a strong year ago base
    ** ARN brought in 87% of HT1's 2021 revenue of A$225 mln
($151.85 mln)
    ** "HT1's guidance may either indicate a deterioration in
market conditions in Nov & Dec, a small loss of market share, or
a combination of both factors," UBS says
    ** Brokerage cuts 2H radio revenue forecast to a growth of
1.5% from prior view of a 4% growth; also trims FY23 market
share assumption
    ** UBS assumes a slowdown in metro radio advertisement spend
growth in June 2023 half of +2% vs Dec 2022 half of +4.5%
    ** Six of nine analysts rate the stock "buy" or higher, one
"hold" and two "sell" or lower; their median PT is A$1.80 –
Refinitiv data
    ** HT1 down 44.3% this year, as of last close, vs a 5.6%
decline in the ASX All Ordinaries index  .AORD 
    ($1 = 1.4817 Australian dollars)
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))