Listed media companies have seen valuations increase, research by accountancy firm Grant Thornton has found.
Listed media companies have seen valuations increase, research by accountancy firm Grant Thornton has found.
The study tracks the performance of 100 UK listed media companies and found that valuations rose by 33.5 per cent in the three months to September, the highest quarterly growth this year.
Media stocks outperformed the FTSE 100, which saw 18 per cent growth in the period. The performance follows annual falls in media stocks of 58 per cent and 46 per cent in 2007 and 2008 respectively.
Mark Henshaw, head of media and entertainment at Grant Thornton, said: ‘Media stocks are rebounding well from the market downturn. Whereas the larger listed companies are leading the way, smaller media stocks have also picked up in value this year.’
He added: ‘[Media companies] are adopting new strategies to innovate and differentiate to meet customer demands such as focusing on digital platforms to reach audiences, and for publishers, switching from daily to weekly editions. By demonstrating their ability to adapt to market conditions, this has helped instil more confidence in media stocks, with investors now seeing more attraction in listed media companies.’
