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Sony Inks Multi-Year Deal With Tegna to Distribute Content
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Sony Corporation recently announced a multi-year distribution agreement with the broadcasting and digital company Tegna Inc. (TGNA - Free Report) . Per the deal, Sony Pictures Television, owned by Sony Pictures Entertainment, will distribute all first-run programming owned by Tegna in the United States and worldwide.
The companies noted that the “powerful programming partnership” will collectively launch shows for Tegna stations that would enable Tegna to enhance footprint in broadcast and cable. Acting as the exclusive advertising sales representative for national barter and integrations, Sony will also enjoy the right to market as well as promote the programs on all media. Sony’s proficiency in major areas like sales, development and distribution will enable Tegna to expand its list of available content for Tegna stations as well as beyond.
Our Take
Sony’s diligent efforts in its Branded Product Business, including Mobile Communications, Imaging Product & Solutions, and Home Entertainment & Sound segments is anticipated to facilitate stronger growth, going forward. Measures like cost-streamlining initiatives, reducing exposure in low-profit geographic regions as well as cutting advertising & promotion expenses, would also benefit this business in the long run. Notably, Sony’s shares have appreciated 30.7% over the past three months, outperforming the industry’s average growth of 28.5%.
The company’s Game & Network Services business, which accounts for the company’s service-related revenues, is proving to be one of the strongest growth drivers. Burgeoning demand for next-generation video game consoles, explosion in eSports and the massive digital shift in the video game industry remain tailwinds for the segment. Further, augmented and virtual reality might prove to be additional catalysts for Sony’s gaming business.
Another strong growth driver for the company is its Semiconductors business, which carries robust margins. Expanding image sensors demand for mobile products should boost its growth prospects. Music segment sales are also benefiting from a steady rise in digital streaming revenues. All in all, we can see that Sony’s high-margin segments are accelerating at a swift pace, which implies healthy earnings growth prospects over the coming years.
Further, the Zacks Rank #1 (Strong Buy) company has been strengthening business segments through accretive acquisitions and joint ventures. The company completed the buyout of eSATURNUS NV to enhance foothold in providing new services and end-to-end clinical image workflow solutions. Moreover, the company acquired the sports broadcasting business of India's Zee Entertainment Enterprises, TEN Sports Network. Such strategic acquisitions will help the company to develop new products, broaden customer base and market share.
Other Stocks to Consider
Some other top-ranked stocks from the same space include Penn National Gaming, Inc. (PENN - Free Report) and Melco Crown Entertainment Limited (MLCO - Free Report) . While Penn National Gaming sports a Zacks Rank #1, Melco Crown Entertainment carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Penn National Gaming has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 79.9%.
Melco Crown Entertainment has surpassed estimates thrice in the preceding four quarters, with an average positive earnings surprise of 61.2%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Sony Inks Multi-Year Deal With Tegna to Distribute Content
Sony Corporation recently announced a multi-year distribution agreement with the broadcasting and digital company Tegna Inc. (TGNA - Free Report) . Per the deal, Sony Pictures Television, owned by Sony Pictures Entertainment, will distribute all first-run programming owned by Tegna in the United States and worldwide.
The companies noted that the “powerful programming partnership” will collectively launch shows for Tegna stations that would enable Tegna to enhance footprint in broadcast and cable. Acting as the exclusive advertising sales representative for national barter and integrations, Sony will also enjoy the right to market as well as promote the programs on all media. Sony’s proficiency in major areas like sales, development and distribution will enable Tegna to expand its list of available content for Tegna stations as well as beyond.
Our Take
Sony’s diligent efforts in its Branded Product Business, including Mobile Communications, Imaging Product & Solutions, and Home Entertainment & Sound segments is anticipated to facilitate stronger growth, going forward. Measures like cost-streamlining initiatives, reducing exposure in low-profit geographic regions as well as cutting advertising & promotion expenses, would also benefit this business in the long run. Notably, Sony’s shares have appreciated 30.7% over the past three months, outperforming the industry’s average growth of 28.5%.
The company’s Game & Network Services business, which accounts for the company’s service-related revenues, is proving to be one of the strongest growth drivers. Burgeoning demand for next-generation video game consoles, explosion in eSports and the massive digital shift in the video game industry remain tailwinds for the segment. Further, augmented and virtual reality might prove to be additional catalysts for Sony’s gaming business.
Another strong growth driver for the company is its Semiconductors business, which carries robust margins. Expanding image sensors demand for mobile products should boost its growth prospects. Music segment sales are also benefiting from a steady rise in digital streaming revenues. All in all, we can see that Sony’s high-margin segments are accelerating at a swift pace, which implies healthy earnings growth prospects over the coming years.
Further, the Zacks Rank #1 (Strong Buy) company has been strengthening business segments through accretive acquisitions and joint ventures. The company completed the buyout of eSATURNUS NV to enhance foothold in providing new services and end-to-end clinical image workflow solutions. Moreover, the company acquired the sports broadcasting business of India's Zee Entertainment Enterprises, TEN Sports Network. Such strategic acquisitions will help the company to develop new products, broaden customer base and market share.
Other Stocks to Consider
Some other top-ranked stocks from the same space include Penn National Gaming, Inc. (PENN - Free Report) and Melco Crown Entertainment Limited (MLCO - Free Report) . While Penn National Gaming sports a Zacks Rank #1, Melco Crown Entertainment carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Penn National Gaming has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 79.9%.
Melco Crown Entertainment has surpassed estimates thrice in the preceding four quarters, with an average positive earnings surprise of 61.2%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>