Prime Media Group is an Australian company operating in the local media industry and in New Zealand

Prime Media Group is an Australian company operating in the local media industry and in New Zealand. The recent HY result showed improving earnings momentum as well as a focus on costs. Prime has leverage to the TV advertising cycle and for every 1% increase in TV ad spend PRT lifts EBITDA by 3%. Regardless of a positive outlook and leverage to a slight upswing in the ad market, the share price has remained subdued. GDP growth affects advertising, so a positive view on the Australian economy will assist in building an investment case for PRT. Prime is trading on a P/E of 10 and offering a yield of 8% pa; compelling in an income thirsty market. In addition PRT is widely considered a possible take-over target if/when media reach rules restricting ownership across media types are abolished. Our monthly newsletter also covers Flexigroup and is available here: (VIEW LINK)