Morningstar lowers estimate on Australia's top two media firms

Nine Entertainment Holdings

07/11/2024 04:52

** Morningstar says the Australian television advertising
downturn is showing no signs of abating in the current scenario
    ** Cuts price target on media firm Nine Entertainment
 NEC.AX  by 7% to A$2.50 and by 8% to A$0.37 on rival Seven West
Media  SWM.AX  
    ** Brokerage expects both companies to take actions to keep
a lid on expenses and improve operating efficiency
    ** Cuts medium-term EBITDA forecasts for both firms by ~9%
    ** Nine Entertainment reverses losses after falling as much
as 2.7% to A$1.065, hitting lowest since March 2020
    ** Seven West currently trading flat
    ** NEC down 45.4% YTD, while SWM is down 38.9%

 (Reporting by Namrata Verma in Bengaluru)
 ((namrata.verma@thomsonreuters.com))