Tag: Media and Entertainment

Bowlero (BOWL) – Favorable Retail Trends; Raising Estimates

Posted on by cpereira@noblefcm.com


Thursday, November 17, 2022

Bowlero Corp. is the worldwide leader in bowling entertainment, media, and events. With more than 300 bowling centers across North America, Bowlero Corp. serves more than 26 million guests each year through a family of brands that includes Bowlero, Bowlmor Lanes, and AMF. In 2019, Bowlero Corp. acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

A good start to the fiscal year. Fiscal first quarter revenues exceeded our expectation at $230.3 million versus our estimate of $222.5 million. Notably, the quarter illustrated the return of COVID-impacted business lines. League and Tournament revenue was up 46% and Group Event revenue was up 86%.

Hitting its stride. The company demonstrated favorable revenue trends across all of its business lines with strong growth of Bowling & Shoe (+24.5%), Food & Beverage (+31.2%), and Amusement (+29.9%).


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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. 

Beasley Broadcast Group (BBGI) – Driving Digital Revenue Growth

Posted on by cpereira@noblefcm.com


Tuesday, November 15, 2022

Beasley Broadcast Group, Inc. owns and operates 61 stations (47 FM and 14 AM) in 15 large- and mid-size markets in the United States. Approximately 20 million consumers listen to the Company’s radio stations weekly over-the-air, online and on smartphones and tablets, and millions regularly engage with the Company’s brands and personalities through digital platforms such as Facebook, Twitter, text messaging, digital and web applications and email. The Overwatch League’s Houston Outlaws esports team is a wholly owned subsidiary. The Company also owns BeasleyXP, a national esports content hub, and AXLR-R8, a Rocket League Championship Series team, in its esports portfolio. For more information, please visit www.bbgi.com.

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Favorable Q3 results. The company reported revenue of $63.8 million, slightly beating our estimate of $63.0 million and at the higher end of its previous guidance range. The revenues benefited from strong digital revenues, up 23%, offset by declines in national advertising. Adj. EBITDA of $7.2 million was slightly lower than our estimate of $7.8 million.



Digital traction.  Digital revenue grew by 23.2% year-over-year and accounted for 16% of total revenue in Q3, an increase from 13% earlier in the year. Notably, Digital accounts for more than National advertising at 15% of total revenues. Additionally, digital margins grew from 14.4% in Q2 to 19.6% in Q3. Management reiterated its goal of digital revenue to account for 20% of total revenue in Q4.


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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. 

Bowlero (BOWL) – Fiscal Q1 2023 Preview

Posted on by cpereira@noblefcm.com


Monday, November 14, 2022

Bowlero Corp. is the worldwide leader in bowling entertainment, media, and events. With more than 300 bowling centers across North America, Bowlero Corp. serves more than 26 million guests each year through a family of brands that includes Bowlero, Bowlmor Lanes, and AMF. In 2019, Bowlero Corp. acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Previewing Fiscal Q1. We are adjusting our forecast for Bowlero ahead of the company’s Q1 earnings release next Wednesday, November 16. For Q1, we are lowering our adj. EBITDA estimate, as we anticipate lower gross profit margins compared with the prior year period. We believe staffing costs in centers will be up over the prior year period, which was affected by COVID related staffing issues. 

Building in more seasonality. In our updated model, we are giving more credence to the seasonality of the business. Notably, the reduction in our adj. EBITDA forecast for fiscal Q1 is offset by a higher adj. EBITDA forecast in fiscal Q2. Our Q1 adj. EBITDA forecast is lowered from $72.0 million to $63.9 million and our Q2 adj. EBITDA forecast is raised from $73.1 million to $81.2 million, illustrated in Figure #1 Forecast Revisions.


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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. 

Townsquare Media (TSQ) – Well Positioned To Further Outperform Industry Peers

Posted on by cpereira@noblefcm.com


Thursday, November 10, 2022

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

In line Q3 results. The company reported quarterly revenue of $120.6 million, up 8.4% year over year and in line with our estimate of  $121.2 million. The revenue variance was due to softer Political advertising. Adj. EBITDA of $30.9 million was marginally higher than our estimate of $30.7 million. The company’s quarterly results demonstrated continued growth despite a difficult macroeconomic environment.

Strong financials. As of September 30th, the company had $27 million in cash and $524 million in long-term debt, and a net leverage ratio of 4.5 times. Management plans to reduce net leverage to 4 times by the end of year, and sits in a favorable position for opportunistic bond buy backs in a rising interest rate environment.


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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. 

E.W. Scripps (SSP) – Powering Through The Economic Headwinds

Posted on by cpereira@noblefcm.com


Wednesday, November 09, 2022

The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation’s largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery, Laff and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Q3 miss. The company reported Q3 revenue of $612.1 million, below our estimate of $638.5 million. Adj. EBITDA of $149.1 million missed our forecast of $170.5. The disappointing quarter was due to lower-than-expected Political revenue.

Political below expectations.  The company recorded $63.2 million in Political revenue, compared with our forecast of $90.0 million. Management attributed the slowed Political revenue pace to spending falloffs in Florida and Montana as certain races became less competitive than initially expected. Political dollars shifted to more competitive markets where the company did not have a large TV station footprint. Notably, Political was still up strongly over the prior election cycle.


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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. 

Gray Television (GTN) – Learns A Hard Lesson On Forecasting Political

Posted on by cpereira@noblefcm.com


Monday, November 07, 2022

Gray Television is a multimedia company headquartered in Atlanta, Georgia. We are the nation’s largest owner of top-rated local television stations and digital assets in the United States. Our television stations serve 113 television markets that collectively reach approximately 36 percent of US television households. This portfolio includes 80 markets with the top-rated television station and 100 markets with the first and/or second highest rated television station. We also own video program companies Raycom Sports, Tupelo Honey, PowerNation Studios and Third Rail Studios.

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Q3 below expectations. The company reported Q3 revenue of $909 million, 4% below our estimate of $948 million. The revenue variance was due to lower than expected Political advertising. Adj. EBITDA of $336 million was 11% below our estimate of $377 million, surprisingly good given the absence of $50 million in high margin revenue.



Political below forecast. The quarterly miss was due primarily to lower-than-expected Political revenue, $144 million compared with our estimate of $194 million. Political advertising shifted toward some of the tight races in larger markets. Nonetheless, for the first nine months of the year, Political revenue was just 3.5% below the cyclical high Presidential election of 2020, on a combined historic basis. 


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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. 

RCI Hospitality Holdings (RICK) – New Year, New Club

Posted on by cpereira@noblefcm.com


Monday, October 31, 2022

With more than 60 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in adult nightclubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, Scarlett’s Cabaret, Diamond Cabaret, and PT’s Showclub. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

Keeps Getting Clubs. RCI Hospitality announced last week the acquisition of Heartbreakers Adult Nightclub for $9 million. The 5-stage, 23,000 square foot Heartbreakers club is located at 3200 Gulf Freeway, Dickinson, TX, and the Company acquired the club using $4.0 million in cash and $5.0 million in a 15-year, 6% real estate seller financing note. The Company did not release any financials for the club but we would expect the price to be within RCI’s 3-5x adjusted EBITDA for the club.

Area Around the Club. Dickinson, Texas had a population of 20,870 in 2020 according to Data USA with a median household income of $70,468. The median household income is a positive for RICK in our view as it is higher than the median income in the United States ($67,521), which we believe provides the Company with higher spending customers as the population has higher disposable income. The location of the club is also a positive due to it being near a freeway, which provides visibility to potential customers. Established in 1986, Heartbreakers is the number one adult entertainment venue in the Galveston, Texas, area.


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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. 

Travelzoo (TZOO) – Are We On The Runway Or Still At The Gate?

Posted on by cpereira@noblefcm.com


Thursday, October 27, 2022

Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.

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

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

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

Misses Fiscal Q3. Revenues increased a modest 1% to $15.8 million, versus our $18.0 million estimate. On a constant currency basis, revenues increased 6% to $16.7 million. Adj. EBITDA missed our estimate, $1.1 million versus our $2.7 million estimate, largely due to lower than expected gross profit margins, which were over 200 basis points lower than expected.

Business too good? Management indicated that the recent results were impacted by a strong rebound in travel, which increased occupancy rates and at very high prices. As such, travel related businesses did not need to advertise and they were unwilling to provide discounted “deals”. This was a consistent message from the “miss” in the second quarter, as well.


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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.