top of page
shallow focus photo of person holding smartphone_edited.jpg

Sports, Media & Entertainment

We understand the importance of staying up-to-date on industry trends and market changes. That's why we offer our clients the opportunity to sign up for Sports, Media & Entertainment industry updates. Our team of experts will keep you informed with the latest news and insights so that you can make informed decisions.

Fundamentals

Size Analysis: Market Cap went from $25 trillion to $23.8 trillion over the past quarter. It could be explained by a decrease of 1,706 companies reporting their financial, due to late reporting and market exit. However, we observed a consistent slow recovery quarter over quarter from 2022Q3. The trend in transaction showed a, increase in number of observations from 2023Q3 to the last quarter, driving up the total amount to $37 billion transacted per quarter.

Public Market Dynamics: On the last quarter, the top 20 companies had a higher year over year return compared to the SPY index. The industry median and lower 20 companies are still underperforming. Over the last 8 quarters, the debt to equity ratio remained stable around 15.7%, while the interest percentage of revenues rose from 1.21% in 2023Q3 to 1.27% in the last quarter. Regarding expenditures, COGS and Operating Expenses percentage of revenues decreased over the past quarter, increasing the net profit margin to 1.87%.

Transaction Trends: The last quarter reported 563 transactions, an increase of 66 transactions. The main reason is a lost of interests in private placements, which was a type of transactions cumulating 1,219 in 2021Q4 and 634 in 2023Q3.

Dispersion Insights: The part of European and African tickers in the public market increased, giving more importance to Asian and North American companies. This biggest importance is also visualized in revenues share, with the first actor, North America, is followed by Asia. The geographic dispersion is fairer in transactions, with Europe competing with Asia in M&A total value. However, decreasing trend in transaction is global and the dispersion remained unchanged over the past 8 quarters.

Methodology

We screened CapitalIQ using its industry classification. Transactions were filtered by announced date within the last 3 years. Companies were filtered by having a public company type. The main industries selected were "Consumer Discretionary" and "Consumer Services". CapitalIQ sector "Media and Entertainment" and subsectors "Recreational Goods", "Sporting Goods", and "Sports and Related Services" were used to screen the database. CapitalIQ groups "Entertainment", "Media", and "Interactive Media and Services" were used as categories while "Hotels, Restaurants and Leisure" and "Leisure Products" were used to determine the "Sport" category. Our sectors were defined by keywords from the CapitalIQ market intelligent industry classification and CapitalIQ primary industry classification.

THIS REPORT IS NOT TO BE USED OR CONSIDERED UNDER ANY CIRCUMSTANCE BY ANYONE AS INVESTMENT ADVICE

This research report is for informational and discussion purposes only. Information presented here is not investment advice of any kind to any person and does not constitute a recommendation as to the purchase or sale of any interests or as to any other course of action. General, financial, and statistical information concerning the details of this report and related industry are from sources Spaulding Financial believes to be reliable.

Spaulding Financial has accurately reflected such information in this research report; however, Spaulding Financial makes no representation as to the sources’ accuracy or completeness and has accepted this information without further verification. Neither all nor any part of the content of this report may be conveyed to the public through advertising, public relations, news, sales, mail, direct transmittal, or other media without the prior written consent of Spaulding Financial. Spaulding Financial ’s research is as of the date reported herein.

Spaulding Financial has no affiliation with any of the companies comprising the industry used as a basis for research in this report, nor does Spaulding Financial hold any investments in the companies listed herein. The content of this report may be used, in part, as a basis for any work that Spaulding Financial performs for you in the future at the sole discretion of Spaulding Financial. All data is from Capital IQ database.

bottom of page