Alter Ego Media: IPO a Game-changer For the Media Sector

Τhe first entry in a new era for the Greek media sector was made today by Alter Ego Media with its Athens Stock Exchange debut. The first day of trading also set the tone for the future with +8.75% achieved when trading began.

It is no coincidence that the CEO of the Athens Exchange Group, Yiannos Kontopoulos, recalled that “In 2000, the mass media was a dynamic sector with 16 listed companies. Today is the first flotation in 20 years”.

The outlook for Alter Ego Media is particularly positive, in a sector that has had to make the largest readjustment since it peaked just before the onset of the financial crisis

Capitalization and oversubscription by a factor of 12

Alter Ego Media started trading with a market capitalization of 227.9 million euros and closed its very first day with 20 million more, making it crystal clear why the company was offered capital far in excess of half a billion euros at an impressive 676.81 million euros. Meaning its offering was oversubscribed almost 12 times over, which is something only the National Bank of Greece has achieved in recent years with its placements.

The analysts from Piraeus Securities and Euroxx, who had set their target share prices at EUR 5.07 and EUR 5.25 respectively, had anticipated this response, stressing inter alia that the listing price was below the fair valuation.

Alter Ego Media: a game-changer

The outlook is particularly positive in a sector that has had to make the largest readjustment since it peaked just before the onset of the financial crisis. Indicatively, in 2010, the year the crisis began, the listed companies in the sector posted losses of almost 140 million euros, with borrowing reaching half a billion euros.

Six relentless years would have to go by before Alter Ego Media came along and began, gradually and methodically, to compile a diversified portfolio, invest in cutting-edge technologies and enrich its services, essentially marking the start of a new era for the entire industry.

Which is why the Chair of the Capital Market Commission, Ms. Vasiliki Lazarakou, said that “The listing of Alter Ego Media shows that with proper strategic planning, targeted investments and a commitment to transparency values, capital can be raised and businesses can grow and create new jobs.”

Vision

The founder and main shareholder of the Group, Mr. Vangelis Marinakis, spoke clearly about the new chapter that has begun with Alter Ego Media’s flotation on the Athens Stock Exchange. He was visibly moved when he spoke about changing the “the bond of trust between the public and the mass media and, ultimately, its relationship with Greece itself. Because this is what that relationship is founded in: in journalism that is accountable to society and defends the fundamental principles of transparency, freedom, democracy and pluralism.”

But over and above this crucial message, a key pillar of the company’s development strategy is its transformation from a traditional media group into a Media Tech Group. That is, its specialization in content creation, distribution and management, using cutting-edge technological solutions.

To achieve this, its management team has identified five strategic axes which it will roll out to gradually achieve the objectives set by the Group’s founder and main shareholder.

Specifically, these are:

• Diversifying revenue sources by adopting new ways of utilizing its operations. These will include developing subscription services, ad-supported streaming services (AVOD) and FAST channels, as well as expanding into new areas including the production and staging of music and artistic events, theater productions and public performances and the provision of electronic and online games as well as e-commerce.
• Achieving economies of scale through the more efficient use of the Group’s resources, increasing its share of the markets in which it operates, developing cross-selling opportunities, and boosting its negotiating power.
• Technological transformation, in terms of using technological solutions to produce high-quality content, developing platforms for broadcasting, streaming and content distribution, interacting with the public via tech tools, analyzing data to identify audience preferences and optimize content delivery, and developing technologies for effective advertising.
• Developing and exploiting content and its use across different media and platforms. In addition, the Company will seek investment opportunities in the field of audiovisual content rights for inclusion in the Group’s portfolio.
• Maintaining a low financial leverage ratio and financing its activities and investments primarily through equity. This strategy seeks to limit the Company’s financial risk and employ its high operating leverage effectively.

Source: tovima.com