Jefferies 'hold' on Australia's Nine Entertainment, Seven West

Domain Holdings Australia

17/11/2022 22:52

** Jefferies maintains "hold" rating on Australian media
firms Nine Entertainment Co  NEC.AX  and Seven West Media
 SWM.AX , citing weak macro environment, rising content costs
and competition
    ** Brokerage says arrival of ad-funded plans by streaming
giants like Netflix and Paramount has raised competition, with
price-sensitive customers likely to sign up for ad-funded
offerings by global OTT providers
    ** Says only way NEC's streaming platform, Stan, could grow
subscribers is by getting pay TV rights for Australian Football
League and National Rugby League
    ** Brokerage says free-to-air TV will continue to experience
structural headwinds on migration to OTT, exacerbated by
ad-funded low-cost plans
    ** Cuts FY23 EPS view by 2% for NEC on its stake in Domain
Holdings Australia  DHG.AX , and by 3% for SWM on higher costs
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))