One area of the share market that is performing particularly positively on Tuesday is the media industry.
Three ASX media shares that are charging higher today are listed below. Let's see why investors are scrambling to buy them:
The Seven West Media share price is up 9% to 18 cents. This follows the release of the media company's half year results, which appear to have been better than feared.
Seven West Media reported a 6% decline in revenue to $727 million and a 26% decline in EBITDA to $92 million. This was driven largely by a 6% fall in total TV advertising revenue due to ongoing soft market conditions and the impact of major sporting events. The latter includes the FIFA Women's World Cup taking place in the prior corresponding period and the Olympics being on a rival station during the reporting period.
However, it is worth noting that this didn't stop Seven from increasing its total TV revenue share to 41.5% (+0.5 points), which is a record share for a non-Olympic broadcaster.
The ASX media share's managing director and CEO, Jeff Howard, said:
Seven West Media's H1 FY25 results reflect the ongoing soft total TV advertising market and the impact of major one-off sporting events. Mitigating the full impact of these revenue headwinds was an increase in our total TV revenue share to 41.5% (up 0.5 points) and the benefits of our year-on-year operating cost savings initiates.
No dividend was declared for the half. Its shares are down over 35% since this time last year.
The SGH share price is up 6% to $51.67. As we covered here earlier, this morning this diversified company, better known as Seven Group Holdings, released its half year results.
The company reported a 2% increase in revenue to $5.5 billion and a 10% lift in EBIT to $843 million for the half. This was despite its media segment reporting an 18% decline in EBIT to $23 million for the period.
In light of its strong group profit growth, the SGH board decided to increase its fully franked interim dividend by 30% to 30 cents per share.
The Nine Entertainment share price is up over 10% to $1.42. This is despite the ASX media share not releasing its results today. These results are expected to be unveiled in a couple of weeks on 25 February.
However, investors appear to have gained enough knowledge from Seven West Media's results to predict that Nine Entertainment is likely to deliver a better than forecast result later this month. As a result, they have been picking up its beaten down shares this morning.
Nine Entertainment shares remain down 25% over the past 12 months.
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