INM - Independent News & Media Company

[gary17]

hello

i am wondering if anyone has owned or looked at INM - they own independent.ie and a variety of print media - seems to be in transition to digital.  with the irish economy improving their shares have appreciated almost 5x this past year.  having said this the prospects of the firm still seem very good - their latest annual report indicates ebitda of about 48m euro , and interest expense for 2014 of about 6.8m euro. (debt to ebitda is now 2.4 according to their presentation)    the market cap according to morning star  / FT is about 250m euro  so that gives what, a fcf yield of about 15.3% at today's closing in london...    would really appreciate thoughts on this... thanks 

 

link to presentation

http://www.inmplc.com/reports/uploads/FY_Prelim_2013_Presentation_-_Final_after_change_to_slide_5_for_shares.pdf

link to 2013 preliminary results

http://www.inmplc.com/reports/uploads/FY_Premlin_2013_Announcement_Complete_-_13-03-14.pdf

[gary17]

so i did a bit more digging into this

 

INM owns about 30% of APN News & Media - an Australian media company with radio stations & print media.  however due to a capital rise their stake will be diluted to about 18%.

 

INM also owns some online assets - http://www.grabone.ie - a deal finding site which seems to be showing growth. 

 

## #

APN News & Media

i calculated fcff of about 174m aud and fcfe of 113 aud ; and ebitda is 163m aud.  fixed asset + nwc = 174m aud at 2013 year end.  so this is about 18.6% fcfe yield based on friday's closing prices.

 

INM

i calculated fcff of 51m and fcfe of 39m  (euro)  and fa + nwc = 52m euro.  so this is about 15.63% fcfe yield based on friday's closing prices.

 

now, it does not appear that anp's free cash flow is channeled back to inm... so  if we adjust for the 18% stake the fcfe yield is more like 21%... 

 

does anyone know if radio stations should worth more than print media?

they also own outdoor ad spaces - not sure how to value that.

 

but this preliminary look seems to suggest APN and INM are both 50c dollars.

 

cheers

Gary

 

 

PS.  apparently Denis O'Brien owns 30% and Tony O'Reilly (who started INM) owns 13%. 

 

13261_APN_AR_ASX_original.PDF

[no_thanks]

Thanks for bringing this one up.  It looks really interesting.  I am reading through the presentation you linked to now. 

 

Please continue posting if you find out more info. 

[philippoc93]

• A media company based in Ireland with a market cap of 175m Euro. It's the leading print media company in the country, operating above and below the border (weaker GBP will affect revenue this year). Financials are stable for the moment, but going forward it's looking to further monetise on its digital assets and grow through M&A.
   
  Looks cheap on all accounts, but could be a value trap:
   
  

https://uk.finance.yahoo.com/q/ks?s=INM.L
 
Trailing P/E - 5.43
P/S - 0.53
Debt - 0
Cash - 64m Euro
 
Key concerns
 

• Dodgy Management - management and shareholders objectives are not aligned. To be precise, I'm afraid management will go on a spending spree and waist that cash instead of returning it to shareholders - http://www.inmplc.com/investor-relations/news/inm-media-speculation-announcement/ 
  
• Denis O Brien - one of the biggest hitters in Ireland and INMs largest shareholder could be manipulating things in the background for his own benefit. Example - INM were looking to buy Newstalk radio, a loss-making station until the deal was leaked. Who owns Newstalk? Yes you got it, Denis O'Brien

[*] Pension Liabilities - currently stand at approx 100m Euro, but look to have been slashed by 70% after an EGM vote in early December. Looks like it will be heading to the high court

 

Recent article here on SA which covers the same points, although comes from a more Bullish angle - https://seekingalpha.com/pro/checkout/4028333?notice=pro

 

Currently sitting at 52-week lows of 0.12/Share.

 

I currently do not have a position in the company.