Still The One?

At Business Communications Management we know a lot about advertising but not so much about the vagaries of the stock market, so we're not too sure what the investment implications are from this story:

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.

A June broker's report by ABN AMRO media analyst Fraser McLeish contains the zero valuation, The Australian reports.

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"...

...It is understood the liabilities now include $3.5 billion of senior debt and $700 million of mezzanine debt. Mr McLeish appeared unimpressed by PBL Media's assets in the face of such debt and tough advertising market conditions: "In the absence of a takeover offer, we only see reason to buy ConsMedia if PBL Media is in the share price for free."

What this does mean for businesses looking to advertise is to stop and spend some time and money understanding their target market before spending money on advertising.

Business Communications Management engages the services of independent market researchers and media buyers for clients who value taking the guesswork out of marketing spend.