Cheer Up: Not all media companies are preforming badly
Look: it’s time for all this generalised gloom about the state of the media to stop
There is nothing anyone can do about the state of the economy or the severe downward pressure on advertising revenues. Not even Gordon Brown can do anything about that. But this week there has been more good news than you could shake a stick at, and people should pay attention.
There is no longer any excuse for the casual, careless pessimism that says All Media Bad – that sort of instinctive reaction can be dangerously self-fulfilling. There was never a greater need to choose, to discriminate in favour of those who are doing something right – or have a special characteristic that will help with riding out recessionary times.
Yesterday BSkyB was still showing signs of growth with net customer growth for the latest quarter of 92,000 to 8.98m. More significantly the churn – or rate at which subscribers are lost – is down from 10.5 to 9.8 per cent and take-up of the splendid Sky+ is up by 310,000 to 3.7m. Pay TV will simply suffer less in an economic downturn.
Scardino’s Promise
Hard times are also not bad times for Pearson and the FT. When the solids are flying there is a particular need for reliable global information. First half operating profits are up by 38 per cent to £124m.
Unsurprisingly, Pearson is backing Barack Obama for President. The man may speak nothing but vacuous platitudes but you can be sure of one thing: he will spend more on education and Pearson is big in US educational publishing. Cue Dame Marjorie Scardino’s promise that record profits are on the way.
Likewise, as a specialist magazine publisher the Future Group has been bucking the depressing trends. Third quarter advertising revenue was up by 5 per cent with online advertising rising 39 per cent.
The reasons are simple. Consumer magazines may be feeling the heat but if your passion is knitting or mountain bike riding that is the last magazine you will cancel.
Woodward’s Progress
SMG – soon to revert to the Scottish Television Group now that their radio and outdoor businesses have gone – was not reporting this week. But chief executive Rob Woodward was reporting progress to journalists.
The disposals and a luckily timed rights issue means that debt has been cut from a horrendous £190m to a “normal” £25 m.
From being a basket case SMG now has a decent chance of establishing itself as Scotland’s premier commercial broadcaster while expanding programme production. There are of course limits to the good news.
On Wednesday ITV will announce its latest results and a bloodbath can surely be expected. Then in September a further blow. ITV will inevitably be thrown out of the FTSE 100 as a result of its melting market cap, making it unwise to ask ITV boss Michael Grade about his share options.