This report is an updated version of the report published on 08 November 2023 at 07:58 AM GMT +1.

Section 1.0. Media & Communications Services Sector Landscape, Trends & SWOT Analysis

Section 1.1. Media & Communications Services Sector Landscape

The UK media and communication services industry is diverse and dynamic in nature and encompasses creative content including music, TV, film, news, magazines, books, gaming, social media, and advertising. These are delivered to the audiences and customers through platforms and distribution networks such as TV networks, cinema distributors, B2B data exchanges and music publishers. Few of the well-known names in the media sector include British Broadcasting Company, ITV Network Limited, Sky Limited, etc. Kalkine’s Sector Report covers the Investment Summary, Sector Landscape, Trends & SWOT Analysis, Risks, Recent Business Updates along with the Valuation, Target Price, and Recommendation on the stock.

Section 1.2. Trends in the Media & Communications Services Sector

Section 1.3. SWOT Analysis

Section 2.0. Sector Risks & Opportunities

Section 2.1. Risk Exposures to Media & Communications Services Sector

Section 2.2. Media & Communications Services Sector Outlook

The telecom market of the United Kingdom is one of the largest in Europe, which faces cut-throat competition in terms of pricing for end-users. The government is supporting the industry to have a fully fibred infrastructure by 2033. Similarly, the fixed-line voice segment is making its way for IP-delivered content. However, the landscape of Telecom Companies can also be challenging with infrastructure costs related to 5G broadband development. There are favorable tailwinds in the sector and a more in-depth look at the future of the Media industry reveals that virtual reality, cinema, and data consumption are expected to see the highest growth rates among all the media segments in the next few years. Overall, the pandemic has accelerated changes in consumer behavior and there is an increasing shift witnessed in the Media space.

After gaining insights into the Media sector, we should look at the business model of two relevant players listed on the London Stock Exchange.

Section 3.0. Informa PLC (LSE: INF) (Buy at GBX 717.00, closing price as of 07 November 2023)

3.1 Company Details

3.2. Key Metrics in Pictures

3.3 Valuation and Technical Guidance

Section 4.0: GlobalData PLC (LSE: DATA) (Speculative Buy at GBX 160.00, closing price as on 07 November 2023)

4.1 Company Details

4.2. Key Metrics in Pictures

4.3 Valuation and Technical Guidance

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 07 November 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.