Reworld Media (ALREW)

Business description

Reworld Media is a digital media group that combines well-recognised media brands (with on- and offline presence) and ad tech digital performance marketing.

Investment summary

Reworld Media posted FY16 preliminary figures showing strong growth, with EBITDA of €4.4m – well ahead of earlier guidance of around €3.3m. This demonstrates the positive impact of the strategy to grow the digital aspects of the media brands, which are achieving fast-growing reach. TradeDoubler's Q117 update shows revenues declining as expected due to the withdrawal from low-value contracts, while underlying trading improved. Lower costs delivered a good uplift in EBITDA, moving it into positive territory. Across the group, digital now accounts for 71% of revenues, and overseas revenues are 56% of total. Our FY17e and FY18e forecasts were broadly unchanged and show a continuing positive trajectory as the brands gain traction. The group has announced the consolidation of Sporever, which will complete imminently, adding digital sports-based content and video capability. Reworld's market valuation remains on a sizeable discount to peers.

Last updated on 01/06/2017

Y/E Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2015A 60.2 1.1 0.0 0.0 N/A N/A
2016A 174.0 4.4 0.9 0.4 505.0 55.6
2017E 186.3 8.5 3.1 5.7 35.4 15.0
2018E 196.5 13.8 8.1 13.8 14.6 15.0

Last updated on 22/05/2017

Latest research

Digital progress and momentum

Update | Media | 30/03/2017

Brand building

Initiation | Media | 06/03/2017

Latest video

Executive Interview - Reworld Media

Industry outlook

While the magazine market continues to suffer from lower physical sales and falling advertising revenues, the underlying demand for entertaining and informative content is undiminished. The outlook for online/mobile ad spend remains robust, benefiting both Reworld's media brands and the TD business model.

Last updated on 01/06/2017

Key management

Pascal Chevalier, Chairman
Gautier Normand, CEO

Company address

16 Rue du Dome
Paris
92100
France
+33 1 45 19 58 00
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