Is GTN Worth Three Times Macquarie Media?

If you live in a major city in Australia, you are probably familiar with GTN’s (GTN) service. They fly helicopters over the major cities and report down to frustrated commuters on peak hour traffic conditions. GTN sells its traffic reports to most capital city radio stations. In exchange it receives broadcasting spots either side of the traffic report, which it then sells to advertisers. The company listed in 2016, and today has an enterprise value of roughly $600m. Macquarie Media (MRN) owns some of the best radio assets in the country, including 2UE, 2GB and 3AW. Despite earning almost as much revenue and profit, the market is ascribing it an enterprise value of just $180m. That doesn't make sense. You can buy a lot of helicopters for $600m (GTN’s are worth about $6m total). And Google Maps is a perfectly adequate backup. It is hard to imagine a world where the radio stations allow GTN to make a fortune reselling their advertising space. Our latest blog compares these two companies and Flight Centre vs Webjet (VIEW LINK)

Forager Funds 

Steve Johnson
Founder & Chief Investment Officer

Steve began Forager Funds in 2009, and now manages approximately $470m across two funds. Offering a listed Australian Shares Fund (FOR) and an unlisted International Shares Fund, Steve focuses on long-term investing in undervalued companies.

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