Pay-TV, India and China Boost Indices

Asian broadcasting and pay-TV indices tracked by MPA have enjoyed weekly gains of 3% and 2%, respectively, while pay-TV is up a strong 12% year-to-date (YTD).

There’s been region-wide rebound for pay-TV companies. Astro, i-Cable, J:COM and Beijing Gehua are all up 15%-20% YTD. J:COM has benefited from M&A newsflow (Liberty sale and Sumitomo tender offer) while Astro has won though not yet collected US$230 mil.-plus in damages from its Indonesian partner Lippo. Sky TV in New Zealand has also appreciated significantly this year, +34% to March 3 close.

Indian media stocks have had a good week: +5% largely driven by strong levels of foreign institutional buying in Zee, Dish TV and IBN 18, owner of Colors, a JV with Viacom, which has started to make  money on quarterly basis. Over the first three days of March, net foreign buying in Emerging Asia has reached a record US$2 bil. The levels have been driven by India (US$746 mil.).

Indian pay-TV operator Hathway listed last week – its share price went south on debut but recovered to March 4 close (Rs213 vs Rs 208 issue price), implying a market value of US$670 mil. or 21x FYE March 2010 EBITDA. Pay-TV operator Den gained 10% over the week to March 3.

China media equities are up 2% for the week and 11% YTD – online search Baidu leader is notable beneficiary, +3% for the week and +26% YTD. Baidu is expanding aggressively into online video with Providence Equity investing US$50 mil. for a minority stake in the company’s new online TV venture. Chinese OOH media equities – Focus Media (+13%), Visionchina (+7%) and AirMedia (+6%) have also gained significantly over the past week.

MPA Asia (incl. Japan) Media Stock Averages
Sector	% Weekly Chg	% YTD 2010 Chg
Pay-TV Distribution	2%	12%
China Media	3%	11%
China Internet	2%	9%
Internet	0.3%	4%
Broadcasting	3%	2%
India Media	5%	-1%
Outdoor Media	10%	-10%
Publishing	-13%	-18%
Source: Media Partners Asia