Reworld Media: outlook unchanged, share price rises
September 21, 2023 at 05:45 am EDT
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On Wednesday evening, Reworld Media reported a fall in operating income for the first half of the year, mainly due to inflation, but this did not prevent the media group from confirming its annual forecasts.
This outlook was well received by investors, with the stock gaining almost 3% on Thursday on the Paris Bourse, even though it is still down more than 40% since the start of the year.
Reworld - which owns titles such as Maison & Travaux, Marie France, Grazia, Auto Plus, Science & Vie and Top Santé - posted a 27.9% drop in consolidated EBITDA to 22.5 million euros in the first half.
Despite sales growth of 10.3% to 266.4 million euros over the period, the group claims to have suffered from a context of unprecedented inflation, which has caused paper and energy prices to soar.
Despite this, it asserts that it has been particularly rigorous in the management of its activities over the half-year, and remains very vigilant with regard to the consequences of inflation.
The company has left its outlook unchanged, believing that the successful integration of new brands has strengthened its ability to pursue profitable growth in France and abroad.
In the view of Euroland analysts, the stock still offers 'substantial' upside potential, in excess of 200%, given its decline since the start of the year, with a valuation of less than 5.5x in terms of Enterprise Value/Ebitda.
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Reworld Media is the French leading provider of thematic media (1st thematic press publisher, 2nd thematic media group in digital) and an international player present in 14 countries. Founded in 2012, the group has been a pioneer in the digital transition of media assets and is currently developing a portfolio of 81 emblematic multi-media and multi-format media brands (web, print, video, audio, thematic TV and events) that generate audiences in 12 thematic areas (Maison & Travaux, Marie France, Grazia, Auto Plus, Science & Vie, Gourmand, Top Santé, Télé Magazine, etc.). The group combines a « Branding » media activity with a « Performance » media activity via its affiliate platform Tradedoubler.