Reworld Media: sales disappoint, share price falls

(CercleFinance.com) - Reworld Media fell by more than 7% on the Paris Bourse on Thursday after reporting lower sales for the 3rd quarter and first nine months of the year.


The media group - which owns the Grazia, Science & Vie, Marmiton, Top Santé and Doctissimo brands, among others - saw its sales fall by 1.6% to 389.5 million for the first nine months of the 2024 financial year.

In the 3rd quarter, sales were down 3% at 125.4 million euros, against a backdrop of intense sports news (Euro 2024, Paris 2024 Olympic Games) deemed 'unfavorable' for its thematic media.

Following this publication, Euroland's analysts say they remain "cautious" about the end of the 2024 financial year, recalling that the last quarter is "always decisive" for the group, especially in the midst of a demanding economic environment.

The brokerage firm has consequently lowered its sales estimate for 2024 to 543 million euros, from 554.6 million previously.

While reiterating their Buy recommendation, Euroland's analysts have reduced their price target to 5.9 euros, from seven euros previously, which still represents a potential upside of over 200%.

'At the current price, the stock is trading at 3.6x P/E 2024e (according to consensus) versus an average of 13.9x P/E 2024e for its comparables, i.e. a discount of almost 75%', they point out.

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