NEC - Stock Update
The recent investor session highlighted that Stan has a strong market position.
The key strengths include the scale of its user base, relationships with content producers and studio and production houses that have been build up over the years.
Stan continues to grow its subscriber base despite the change in demand since Covid and the ramp up of new competitors (e.g., Disney+).
The session highlighted that the originals strategy seems to be much more substantive as it makes Nine much less reliant on one or two big studio output deals.
Nine Entertainment (NEC) trading above 98% of the volume curve from the past 12 months.
Source: Bloomberg
Company overview
Nine Entertainment is an Australian Media company that provides broadcasting through Subscription services, Radio, TV, and Online platforms. NEC has managed strong subscriber growth over the past 6 months and has effectively navigated its way through the increase in large competitors. This continued subscriber growth supports our investment thesis of a buy rating.
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