Lucas Goode on Livewire: NEC: Turning headwinds into plain sailing

23 August 2019
Lucas on Livewire

IML became a NEC shareholder after it merged with Fairfax to become Australia's largest media company. We conducted detailed analytical research on the company to ensure it met our criteria of having a strong competitive advantage, a capable management team in place and a track record of recurring earnings which gave us confidence in the company's future earnings and dividend growth prospects – all at what we believe is a reasonable price.

Despite headwinds in NEC's free-to-air division due to soft TV advertising and poor listings on Domain due to Australia's sluggish economic growth and weaker housing markets, the company recently announced a strong earnings result thanks to cost saving as well as earnings improvements from its Stan and 9Now media assets.

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