Back to top

Analyst Blog

Zacks Equity Research

Ericsson (ERIC) to Provide Media Delivery Services for SBS

CSCO ERIC NOK HRS

Trades from $3

Telefonaktiebolaget LM Ericsson (publ) (ERIC - Free Report) inked an exclusive contract to provide media delivery services for Australian public service broadcaster, Special Broadcasting Service (“SBS”), fortifying its position as a leading provider of broadcast and media services in Australia and globally.

Per the contract, Ericsson will leverage its broadcast and media services hub in London to cumulate, prepare and deliver content from multiple content owners and distributors globally. This content will be format ready for transmission and will be delivered directly to SBS’s headquarters in Sydney.

Further, Ericsson will also provide Quality Control and deliver full technical metadata, in accordance with SBS’s technical and editorial specifications.

This deal will enable SBS to transition from a manual delivery process to a digitised practice, thus making its content aggregation process more efficient and streamlined. It will also lend SBS the flexibility and agility required to cater to the dynamic demands of managing media assets.

As a leading global provider of broadcast and media services, Ericsson has worked with world’s most famous broadcasters, platforms and content producers, including BBC, HBO, 20th Century Fox, Liberty Global, Sky, Bonnier Group, TV5 Monde and France 24.

In April this year, Ericsson signed a multi-year access services contract with SBS to provide both live and file-based captions for SBS TV. Ericsson is one of the leading providers of closed captioning services in the world, and boasts a strong presence in Australia, the UK, Germany, France, the Netherlands, Spain and the U.S.

ERICSSON LM ADR Price, Consensus and EPS Surprise

 

We believe that the new contract will not only help strengthen Ericsson’s live captioning business in Australia, but also boost its brand value in the global wireless equipment market.

Of late, Ericsson has been grappling with slumping demand in Russia and Brazil, and accelerating negative industry trends have further compounded its problems. Further, the company is also facing stiff competition from Huawei Technologies Co. and Nokia Corp. (NOK - Free Report) . To combat such critical industry concerns, Ericsson recently struck a partnership with Cisco Systems Inc. (CSCO - Free Report) , to boost its product line up and sell more complete networks. The company expects that the deal would generate $1 billion or more in annual sales for each company by 2018.

Whether the growth and cost-streamlining efforts of this Zacks Rank #4 (Sell) company will help it beat industry-wide demand blues, remains to be seen.

Stock to Consider

A better-ranked stock in the same space is Harris Corporation (HRS - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Harris Corporation is an international company, focused on communications equipment for voice, data and video applications. The company has an impressive earnings surprise history for the trailing four quarters, beating estimates all through, with an average of 4.2%.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

CISCO SYSTEMS (CSCO) - free report >>

ERICSSON LM ADR (ERIC) - free report >>

NOKIA CP-ADR A (NOK) - free report >>

HARRIS CORP (HRS) - free report >>