Market punishes broadcasters and rewards Nine’s outdoor move
The investment market continued to disdain the broadcast sector on Monday, with the newly merged Southern Cross Austereo and Seven West Media operation falling below a market capitalisation of $300m for the first time since the deal.
After falling by more than 3%, SCA spend much of Monday below the landmark number before recovering somewhat in late trading to finish the day almost flat on a market cap of $306m.
By contrast, it was another good day for Nine with its investment in outdoor via its QMS purchase, and exit from radio, rewarded with the share price increasing by another 6.6%, taking it back above a $1.9bn valuation for the first time since it sold out of Domain.
Nine’s valuation has increased by more than $200m over the last two trading days.
Elsewhere on the Unmade Index, plodding mining publisher Aspermont saw its shares suspended from the ASX after failing to file reports on time. On Friday night, Aspermont belatedly filed tis quarterly cashflow report which revealed that it burned through $1.495m in the October to December quarter, and had only $1.524m left in the bank, giving it a runway of roughly three months.
In the last two financial years, Aspermont has reported net losses after tax of $2.4m and $2.1m.
The Unmade index closed on 459.4 points, up 3.49% for the day.
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