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PBL Media Australia – Valued at Zero

PBL Media – the private-equity-controlled company that houses the Packer family’s one-time flagship media assets, the Nine Network and ACP Magazines – has been valued at zero in a report by one of the country’s top media analysts,  ABN AMRO media analyst Fraser McLeish contains.

The analyst also reduces his earnings forecasts for PBL Media to “reflect industry feedback that the television advertising market has weakened significantly in the last few weeks”. As well it is an accepted fact that recovery of TV and other advertisers tends to lag the economic trends

In an analysis of Consolidate Media’s value following Lachlan Murdoch’s collapsed bid to privatise the group, Mr McLeish said much of PBL Media’s $2 billion equity value had evaporated.

Mr McLeish said his latest valuation of Consolidate Media included “PBL Media at zero due to weak operating metrics, high debt and minimal visibility”

I am personally passionate about the future of Broadcasting, New Media and the Technology that enables them – where both of these areas are going to evolve. In particular how we infuse the influence of the Internet and other emerging digital platforms into the mass media business models.

Very few Media companies in Australia are building new business models most are not. Some are throwing money at the threat by buying Internet operations thinking that this will plug the holes in their future Income profile, whilst others are actually doing what is needed to make the Internet an ally, by building communities, that are not knee jerk reactions but solid strategic plans with definitive stages and goals.

I am positive that formerly monopolistic media enterprises can both survive and grow their income streams but they will need to do so by following a different business model to that of the past, whilst capitalising on their current assets and their incredible strengths, new strategies for the movement into Multi platform Broadcasting; and onto other emerging digital platforms; Overseeing production of innovative inherently cross media television programs; the acquisitions of new innovation content experiences for free to air and online.

Also one doesn’t like to mention that the current Online advertising expenditure in Australia for the 12 months ending 30th June 2007 totalled 1,199.5 million. This is a 54.2% increase over the previous 12 months to 30th June 2006.  On this outlook, probably the year just ended, online sales will easily outstrip the termed Old Media, TV advertising at just $1.6 billion.

Unfortunately I do not consider the current management of PBL Media as well as some other former Monopolistic Media operations – have a strategic plan of how to respond to the new environment – in particular, the Nine Network has been on top for so long that there current woes have made them seemingly incapable of forming a coherent strategy.

Whilst I appreciate that the task they have in front of them in immense – Hopefully they will respond before it is too late.

See the full article here

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