TD's Take on Investor Conference Event
CEO Doug Murphy just spoke at a Canadian investor conference.
Impact: SLIGHTLY POSITIVE
The upcoming fall content schedule on both conventional (Global) and the
specialty channels was characterized as the best quality that Corus has since
the acquisition of Shaw Media in 2016 (18 hours of simulcast). The largest
supplier remains CBS/Viacom but they continue to have a diverse array of content
suppliers. Management is confident that U.S. studios/broadcasters will not bypass
traditional (and highly lucrative) license fee partners in Canada in favour of a full
focus on DTC/streaming.
The demand and interest from advertisers in this TV inventory in the fall (aka
Q1/22) was characterized as "very, very, very strong."
The portion of these ad sales going through advanced advertising solutions (ABB
and programmatic) is expected to keep growing versus the 38% of total achieved
in Q3/21 (which was up from 25% in Q3/20).
In addition to good dynamics on both the supply of linear TV content (aka more
shows being delivered than last year, which means more audience rating inventory
to sell) and the demand for this advertising inventory, Corus emphasized exciting
progress on creating more digital video advertising inventory to sell.
1. 60% of the viewing on STACKTV (~600k subscribers and still growing ~100k
per quarter) is on VOD as opposed to real-time/linear. The ability to insert ads
into those VOD streams (DAI) is near completion and expected to launch in
fiscal Q2/22.
2. The Global TV digital app is up to 1.5 million users, and Corus continues to
benefit from growing AVOD demand for these eyeballs/impressions.
Recommendation: ACTION LIST BUY
Risk: HIGH
12-Month Target Price: C$9.50
12-Month Dividend (Est.): C$0.24
12-Month Total Return: 63.4%