Media Stocks to Face Tough 2010: Analyst Says On CNBC
January 29, 2010 4:48 PM
2009 proved to be a good year for the media industry. However, according to CNBC’s Julia Boorstin, Morgan Stanley (NYSE: MS) analyst Ben Swinburne has recently released a report about the outlook for the media sector in 2010. The report has taken a negative view about the prospects of media.
Swinburne has predicted a decline of 3 percent in theater attendance during 2010. 2009 saw 5 to 6 percent increase in attendance. However, he concurred that revenues are expected to get a boost by higher 3-D prices but warned that the theaters may see a shift in their revenue mix.
According to Swinburne it is highly likely that low-margin ticket sales rather than high-margin concessions would make the bulk of the revenue. He also expressed concerns about EPS decline for the companies like Regal Entertainment (NYSE: RGC) and Cinemark (NYSE: CNK).
