Category: Media and Marketing

Wednesday, December 11, 2019

Salem Media (SALM)

Why The Dividend Cut Should Help The Stock

Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Declares $0.025 dividend.  In a move that was anticipated, the board announced that it cut the dividend by over 60% from $0.065 to $0.025. On an annualized basis, the dividend would be $0.10 and offer an attractive current yield of 6.7%.

The market anticipated a cut. The shares have slid 50% from March 2019 highs to near current levels and offered a 17% annualized dividend yield based on…

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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Tuesday December 10, 2019

Akazoo (SONG)

Music To Our Ears

Akazoo is a global, on-demand music and audio streaming and media and AI technology company, founded 2010, with a focus on emerging markets and a presence in 25 countries. Akazoo’s premium service provides subscribers with unlimited online and offline high-quality music streaming access to a catalogue of over 45 million songs on an ad-free basis. Akazoo uses patented AI for music recommendations and offers online and offline listening. Akazoo’s free, ad-supported radio service consists of over 80,000 stations and exists as a separate services and application. As consumers across the globe continue to shift their media consumption to mobile devices, Akazoo is equipped with a world-class mobile application and user experience which works seamlessly across a multitude of mobile devices and provides a high-quality user experience across a range of mobile networks from 2g to 4g LTE and soon 5g.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

Q3 better than expected. Revenues increased 24.4% to €34.9 million versus our €34.3 million estimate. Adjusted EBITDA of €2.95 million was better than our €2.63 million estimate.

Subscriber growth, better than expected. Premium subscribers of 5.5 million, up 28% year over year, were better than our 5.3 million estimate, with solid growth in Eastern Europe and some Latin countries. Last quarter, Asian countries drove results, which illustrates the company’s dynamic and…

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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Tuesday, December 03, 2019

Harte-Hanks Inc. (HHS)

New Leadership For A New Phase?

Harte-Hanks is a marketing services company that provides multichannel marketing solutions as well as consulting, data analytics, and strategic assessment. The company’s offerings focus on business-to-business, retail, finance, and automotive segments through digital, social, mobile, and print media offerings. Harte-Hanks strives to develop better customer relationships through its marketing and analytical services for clients. The majority of its revenue is derived from its marketing services in the retail, technology, and consumer brand segments.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to full report for the price target, fundamental analysis, and rating.

Appoints a new C-level management team.  The company appointed Andrew Benett as Executive Chairman and CEO, Brian Linscott as COO, and promotes Lauri Kearnes to CFO position, replacing departing Mark Del Priore. Andrew Harrison stepped down as President but will remain with the company in an advisory role. Al Tobia, former Executive Chairman, will remain on the Board. While it was expected that there was a search for a new CEO, we are surprised by the sweeping management and Board changes.

A pivot in focus.  The new management represents a team with broad experience in the marketing services industry and a pivot in the company’s operating strategy, with a focus on revenue and cash flow growth from one of cost-cutting and right-sizing. We believe that investors are likely to be hopeful, but …

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Wednesday November 27, 2019

Akazoo (SONG)

Creating A New Vibe On Messaging

Akazoo is a global, on-demand music and audio streaming and media and AI technology company, founded in 2010, with a focus on emerging markets and a presence in 25 countries. Akazoo’s premium service provides subscribers with unlimited online and offline high-quality music streaming access to a catalog of over 45 million songs on an ad-free basis. Akazoo uses patented AI for music recommendations and offers online and offline listening. Akazoo’s free, ad-supported radio service consists of over 80,000 stations and exists as a separate service and application. As consumers across the globe continue to shift their media consumption to mobile devices, Akazoo is equipped with a world-class mobile application and user experience which works seamlessly across a multitude of mobile devices and provides a high-quality user experience across a range of mobile networks from 2g to 4g LTE and soon 5g.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for the price target, fundamental analysis, and rating.

Delivers music content on a messaging service. Akazoo inked an agreement with Rakuten Viber, one of the world’s largest messaging and voice over IP services with over 1 billion users, to deliver music content and lyrics. We believe that the agreement is among the first of its kind and could lead to agreements with other messaging providers.

Enhances in-market footprint.  Akazoo is in the majority of Viber’s 17 markets, which should provide enhanced opportunities to…

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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

The pros and cons of media consolidation

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

Prometheus Radio Project versus the FCC was a series of cases challenging new media ownership rules put forth by the FCC in 2002 easing the limits of cross-ownership of media.  Prior to 2002, companies were prohibited from owning television and newspaper stations in the same market, and ownership of television and radio stations was limited.  After the ruling, a three-tier system was put in place with more restrictive measures for smaller markets, less restrictive measures for mid-sized markets, and no restrictions for large markets.  The Prometheus Radio Project, a non-profit organization advocating for community radio stations to bring about social change, brought a case against the FCC, ultimately resulting in the U.S. Third Circuit Court of Appeals remanding the case back to the FCC.  The FCC has petitioned the court for a rehearing.  Does the lessoning of media ownership represent a reflection of a changing media environment (Bull Case) or are controls needed to insure a fair and unbiased media (Bear Case)?

Wednesday November 20, 2019

Tribune Publishing Company (TPCO)

What Does A Change In Its Largest Shareholder Mean?

Tribune Publishing Co is a print and online media company that publishes various newspapers and websites. It creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities. The company manages its business as two distinct segments, M and X. Segment M is comprised of the company’s media groups excluding their digital revenues and related digital expenses, except digital subscription revenues when bundled with a print subscription. Segment X includes the company’s digital revenues and related digital expenses from local Tribune websites, third party websites, mobile applications, digital only subscriptions, Tribune Content Agency and BestReviews.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Alden Golden Capital becomes largest shareholder.  Alden Golden, a hedge fund management company, purchased over 9.0 million TPCO shares from Merrick Ventures and Michael Ferro, former non-executive chairman of the company, for $13 per share, a 34% premium to the closing price.
• Seeks board seats. Tribune appears to be in discussions with Alden to put two members on the board, increasing the…
  
  

  
  

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This Company Sponored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Thursday, November 14, 2019

The McClatchy Company (MNI)

Lots Of Balls In The Air

The McClatchy Company publishes news and information in the United States. Its publications include the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, the (Fort Worth) Star-Telegram, and The (Durham, NC) Herald-Sun. The companyÂ’s businesses comprise daily newspapers, Websites, mobile apps, mobile news and advertising, video products, niche publications, direct marketing, direct mail services, and nearby community newspapers. The McClatchy Company was founded in 1860 and is headquartered in Sacramento, California.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to full report for the price target, fundamental analysis, and rating.

• Q3 results were soft.  Total company revenues of $76.7 million were lighter than our $83.4 million estimates. Adjusted EBITDA from cont. ops. was $19.9 million, which was lower than our $23.1 million estimates. The largest variance from our revenue estimate was in Advertising, which accounted for $6.7 million of the revenue miss.
  
• Difficult comp Q4 expected. Management provided a downcast view of Q4 given the year earlier strong cost reduction and the absence of year earlier $1.6 million in Political advertising. We are lowering our Q4 and…
  
  

  
  

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This Company Sponored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Thursday, November 14, 2019

QuoteMedia (QMCI)

Not Likely To Move The Needle

QuoteMedia, based in Fountain Hills, Arizona, provides cloud-based financial data, market news feeds, and financial software solutions.  Its customers include financial service companies, online brokerages, clearing firms, banks, media portals, public corporations, and individual investors.  The company provides a single-source solution providing products such as streaming quotes, charting, historical data, technical analysis, news, and research.  Information can customized and provided to multiple platforms including terminals and mobile devices.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for the price target, fundamental analysis, and rating.

• Uninspiring Q3.  Total company revenue increased a moderate 5.3% to $2.963 million with softer than expected adjusted EBITDA of $158,000 versus our $250,000 estimate. The quarter was adversely impacted by a large customer that pared-back services in the second quarter of 2019.
• Investing in growth.  We believe that the company is investing in sales staff and infrastructure to potentially accelerate revenue and cash flow growth in 2020. This appears possible in the second half of 2020, or…
  
  

  
  

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Wednesday November 13, 2019

Salem Media (SALM)

Addressing The Elephant In The Room

Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Q3 results better than estimated. Total company revenues of $64.1 million were better than our $62.3 million estimate and cash flow $9.0 million was better than our $8.4 million estimate. The results benefited from strong publishing revenue, up 15.3%.
• Q4 outlook in line. Management indicated that revenues were pacing down 4% to 6%
  which includes the absence of year earlier Political advertising of $1.7 million, in line with our estimate. We are maintaining…
  
  

  
  

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Wednesday, November 13, 2019

Harte-Hanks Inc. (HHS)

Ahead Of Its Turnaround Plan

Harte-Hanks is a marketing services company that provides multichannel marketing solutions as well as consulting, data analytics, and strategic assessment. The company’s offerings focus on business-to-business, retail, finance, and automotive segments through digital, social, mobile, and print media offerings. Harte-Hanks strives to develop better customer relationships through its marketing and analytical services for clients. The majority of its revenue is derived from its marketing services in the retail, technology, and consumer brand segments.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• A quarter early.  The company overachieves estimates with a positive cash flow of $203,000, a quarter earlier than expected. Revenues were roughly in line with expectations at $51.4 million. Revenues moderated from the pace of decline in the first half and the company indicated that it is building a pipeline of business.
  
• Renegotiated third party agreements. The company right sized its third party agreements, which was adversely affecting profitability. Annualized vendor cost savings are a significant $13.4 million in total and…
  
  

  
  

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Tuesday, November 12, 2019

Cumulus Media Inc. (CMLS)

Building Value Through Aggressive Debt Reduction

CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Overachieves Q3 estimates.  Q3 revenues of $280.8 million was better than our $276.1 million estimate. Cash flow, Adj. EBITDA, was better than expected as well ($58.7 million versus our $51.9 million estimate). The better than expected results were largely due to stronger Digital advertising.
  
• Q4 pacings appear soft, but  Q4 was anticipated to be a difficult comp given the absence of year earlier Political, but pacings are soft. Despite the lackluster Q4 revenue outlook, management anticipates achieving $204 million to $205 million in…
  
  

  
  

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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Monday, November 11, 2019

E.W. Scripps Company (SSP)

What Is At The Core Of Q3 Results?

The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation�s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Exceeds Q3 expectations. Q3 revenues were $350.1 million, better than our $343.1 million estimate, with the largest variance due to stronger than expected core advertising. Operating cash flow (adj. EBITDA) was better than expected at $39.0 million versus our $37.8 million estimate.
  
• Q4 guidance a little better.  The favorable core advertising trends appear to be continuing into Q4, along with better than expected Poltical advertising. As such, we are raising our Q4 revenue and…
  
  

  
  

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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Friday November 8, 2019

Tribune Publishing Company (TPCO)

Why This Quarter Reflects The Quality Of Its Cash Flow

Tribune Publishing Co is a print and online media company that publishes various newspapers and websites. It creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities. The company manages its business as two distinct segments, M and X. Segment M is comprised of the company’s media groups excluding their digital revenues and related digital expenses, except digital subscription revenues when bundled with a print subscription. Segment X includes the company’s digital revenues and related digital expenses from local Tribune websites, third party websites, mobile applications, digital only subscriptions, Tribune Content Agency and BestReviews.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Beats cash flow expectations. Q3 cash flow (adj. EBITDA) of $24.8 million was better than our $22.1 million estimate, on in line revenues of $236.0 million. Notably, print advertising was stable from previous quarters and its Digital content business revenues were strong, up 50%.
• Q4 and full year guidance largely in line. Management anticipates Q4 revenue in the range of $250 million to $254 million and reiterated cash flow (adj. EBITDA) guidance of $102 million to $106 million. We are moving our …
  
  

  
  

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.