M6: Q2 results: advertising revenues under pressure, but EBITA above estimates
M6: (NEUTRAL, Fair Value Fair Value EUR23.5 (+40%))Q2 results: advertising revenues under pressure, but EBITA above estimates
Again, the group managed to beat profit estimates this quarter. Advertising revenues were impacted by the world cup, but new distribution contracts and solid cost controlled allowed the group to post Q2 EBITA 10% above expectations. We expect the stock to react positively, while newsflow around Les Girondins could act as a catalyst. However, restoring advertising performance in H2 will be at the expense of growing content costs, while regulatory catalysts are still a long way ahead.
Co. is engaged in the media industry, primarily television edition & broadcasting. Co.'s operations can be divided into three segments. In the Free-to-Air segment, Co. operates a Free-to-Air terrestrial TV network, financed exclusively by advertising. In the Digital TV segment, Co. broadcasts many digital channels. In the Diversification & audiovisual rights segment, Co. purchases audiovisual rights. Co. is also engaged in distance-selling business, allows viewers to play an active role in the unfolding of programs proposed to them, develops mobile phone content; publishes a family of websites, organizes events & shows, & manages football Club des Girondins de Bordeaux.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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