Communications Industry Posts Third Consecutive Year of Double-Digit Revenue Growth, According to 15th Annual Veronis Suhler Report.NEW YORK--(BUSINESS WIRE)--Nov. 3, 1997--Revenues of publicly reporting companies in the media and communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. rose 12.3% to $195.7 billion in 1996, marking the third consecutive year of double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the 15th Annual Veronis Suhler & Associates Communications Industry Report, released today by the investment banking firm. The VS&A Communications Industry Report covers 456 publicly reporting companies in 14 communications industry segments with assets totalling $340 billion. Revenue growth for the industry as a whole has increased steadily since 1993, when it was 8.3%, and hit 10.1% in 1994 and 12.1% in 1995. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (OCF (1) (Open Container Format) See OPS. (2) (OpenCard Framework) A smart card specification from the OpenCard Consortium. ) for the communications industry saw continued improvement as well, with 1996's 15.2% growth in OCF substantially higher than the respectable gains of 9.0% in 1995 and 10.6% in both 1993 and 1994. Acquisitions were a major influence on these cash flow increases. Several segments demonstrated huge upswings in OCF growth, with television network broadcasters improving from a negative (7.8%) cash flow growth rate in 1995 to a 27.1% growth rate in 1996. OCF results for radio saw a similar increase, improving from 16.1% growth in 1995 to a 33.2% growth rate in 1996. The largest upswing Upswing An upward turn in a security's price after a period of falling prices. in operating cash flow growth, however, was in the professional and educational publishing segment, which experienced operating cash flow growth of 34.3% in 1996, up from the 10.4% growth rate of 1995. "As companies continue to keep costs under control and revenue continues to see a double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" rise, operating cash flows for many communications segments have been hitting record levels," says John Suhler, founding partner of Veronis Suhler & Associates. Seventeen Firms Top $4 Billion in Revenue According to the 15th Annual Report, 17 publicly-traded communications companies Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. topped the $4 billion revenue mark in 1996, up from just seven in 1992. Subscription video services operators continued to move up on the charts of the Top 50 Companies Ranked by Revenue, with Viacom
American animator, showman, and film producer. Noted for his creation of the cartoon characters Mickey Mouse and Donald Duck, he produced the first animated film with sound, and Bertelsman, with a combined revenue of over $46 billion, were the top three communications companies in the country in terms of revenue. (A list of the Top 50 Companies in the communications industry is available upon request.) Newspaper publisher Hollinger Hollinger may refer to:
Cablevision Systems Corporation is an American cable television company. It is the 5th largest cable provider in the USA, with most customers residing in New York, New Jersey, Connecticut, and Pennsylvania. (23.1%). The communication industry's top companies as ranked by operating cash flow margins were Comcast Comcast Corporation, (NASDAQ: CMCSA) is the largest[1] cable television (CATV) company and the second largest Internet service provider in the United States. (49.4% margin); Cox Communications Cox Communications is a privately owned subsidiary of Cox Enterprises providing digital cable television and telecommunications services in the United States. It is the third-largest[2] cable television provider in the United States, serving more than 6. (38.1%); McGraw Mc·Graw , John Joseph Called "Little Napoleon." 1873-1934. American baseball player (1891-1900) and manager (1902-1932) of the New York Giants, which he led to 2,840 victories, including 10 pennants and 3 World Series championships (1905, Hill (37.8%); Cablevision (35.2%); and Media One (35%). However, operating cash flow margins have increased the greatest over the past five years at McGraw-Hill The McGraw-Hill Companies, Inc., (NYSE: MHP) is a publicly traded corporation headquartered in Rockefeller Center in New York City. Its primary areas of business are education, publishing, broadcasting, and financial and business services. (37.8% in 1996), which has seen a 15.3 point gain since 1992. -0-
One Year Growth Rates for the Communications Industry
1996 Annual Annual
Revenue Growth of Growth of
($ billion) Revenue (%) Assets (%)
Television Broadcasting $ 26.9 16.6% 67.3
Radio Broadcasting 3.1 34.9 186.8
Subscription Video Services 29.5 20.7 27.1
Filmed Entertainment 25.6 13.3 31.7
Recorded Music 8.4 -9.4 -5.6
Newspaper Publishing 22.3 7.1 5.2
Consumer Book Publishing 4.4 2.6 2.6
Consumer Magazine Publishing 9.7 6.9 4.3
Business to Business
Communication 2.3 4.6 -7.1
Professional/Educational
Publishing 10.9 11.7 14.1
Business Information Services 23.2 14.3 15.8
Advertising Agencies 10.6 12.7 12.3
Interactive Digital Media 8.5 13.4 29.7
Specialty Media/Marketing 10.0 11.5 30.6
Communications Industry Total 195.6 12.3 29.9
Annual Annual 1996
Growth of Growth of OCF
OCF (%) OI (%) ROA
Television Broadcasting 27.1% 16.7% 13.1%
Radio Broadcasting 33.2 33.5 9.8
Subscription Video Services 17.4 0.5 11.1
Filmed Entertainment 4.2 6.1 10.4
Recorded Music -5.6 -8.9 12.5
Newspaper Publishing 15.7 18.3 23.0
Consumer Book Publishing -15.3 -18.2 13.6
Consumer Magazine Publishing 6.5 4.3 15.5
Business to Business
Communication 8.1 9.9 24.7
Professional/Educational
Publishing 34.2 58.9 15.6
Business Information Services 12.0 10.5 27.1
Advertising Agencies 14.9 15.0 9.8
Interactive Digital Media -2.9 -80.0 8.0
Specialty Media/Marketing 15.9 15.2 21.1
Communications Industry Total 15.2 8.8 13.8
-0-
Five Year Growth Rates for the Communications Industry
1992-96 1992-96 1992-96
CAGR CAGR CAGR
Revenue (%) Assets (%) OCF (%)
Television Broadcasting 9.0% 23.9% 19.3%
Radio Broadcasting 18.9 44.7 26.1
Subscription Video Services 14.0 20.3 10.1
Filmed Entertainment 16.8 17.6 15.6
Recorded Music 3.5 2.5 5.8
Newspaper Publishing 6.4 5.7 8.3
Consumer Book Publishing 4.0 5.2 -3.9
Consumer Magazine
Publishing 4.8 2.7 5.4
Business to Business
Communications 6.9 1.2 9.7
Professional/Educational
Publishing 11.3 20.4 19.0
Business Information Services 14.4 13.0 14.8
Advertising Agencies 7.8 12.1 12.1
Interactive Digital Media 12.0 27.5 -13.3
Specialty Media and Marketing 13.0 23.3 10.4
Communications Industry Total 10.7 17.5 11.3
1992-1996 1992-96 93 v. 96
CAGR OCF Margin ROA
OI (%) Change (+ or -)
Television Broadcasting 5.4% 7.6pts -2.3
Radio Broadcasting 8.0 6.2 -3.7
Subscription Video Services -7.3 -5.1 -4.1
Filmed Entertainment 0.1 -0.5 1.8
Recorded Music 1.8 1.5 0.4
Newspaper Publishing 1.4 1.4 1.9
Consumer Book Publishing -4.7 -4.4 -4.6
Consumer Magazine
Publishing 0.9 0.4 0.7
Business to Business
Communications 2.2 1.4 5.9
Professional/Educational
Publishing 3.8 4.9 0.9
Business Information Services 0.7 0.4 1.5
Advertising Agencies 1.9 2.0 0.6
Interactive Digital Media -26.0 -18.7 23.4
Specialty Media and Marketing -1.5 -1.7 -9.1
Communications Industry Total -0.6 0.5 -2.4
-0- Note: OCF = Operating Cash Flow OI = Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. CAGR CAGR See: Compound Annual Growth Rate =Compound Annual Growth Rate OCF/ROA=Operating Cash Flow/ Return on Assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). -0- Revenue Five Year Trend: Combined revenue for the 14 segments of the communications industry increased by $21.4 billion to $195.6 billion in 1996, up 10.7% compounded annually from the $130.3 billion reported in 1992. The fastest growing segment in terms of revenue for the past five years was radio broadcasting The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , which saw an 18.9% compound growth rate from 1992 to 1996, followed closely by filmed entertainment, with a 16.8% revenue growth rate; business information services See Information Systems. (14.4%); subscription video services (14%); and interactive digital media (12.0%). The lowest revenue growth over the past five years was seen by the recorded music recorded music n → música grabada industry, at 3.5%, and consumer book publishing book publishing. The term publishing means, in the broadest sense, making something publicly known. Usually it refers to the issuing of printed materials, such as books, magazines, periodicals, and the like. , at 4.0%. Within each segment, certain subsegments were star performers: Consumer Internet-related services, a subsegment of the interactive media services segment, saw revenue grow 70.7%, while the technology information subsegment of the business information services group saw revenue increase at 40.9% compounded annually. Single Year 1996: For the single year 1996, radio broadcasting saw the highest segment revenue growth, at 34.9%, with subscription video services at 20.7% and television broadcasting at 16.6%. Recorded music, with a 9.4% drop in revenue in 1996, trailed consumer books, which registered only a 2.6% growth in revenue. Among the subsegments, revenue for consumer internet-related services grew 124.5% in 1996 to $2.744 billion; health care information, a subsegment of the business information services segment, saw a 36.4% revenue growth spurt growth spurt Pediatrics A period of rapid growth in middle adolescence; ♀ ↑ ±8 cm/yr ±age 12; ♂ ↑ ±10 cm/yr ± age 14; GS is orderly, affecting acral parts–ie, hands and feet grow before proximal regions, in 1996. Assets Five Year Trend: Combined assets for the communications industry hit $340.2 billion in 1996, a 17.5% compound annual growth rate for the past five years since 1992. As with revenue, the biggest increase in asset growth was turned in by the radio broadcasting industry, which has seen an annual compounded asset growth rate of 44.7% since 1992. The second highest asset growth was experienced by the interactive digital media group ($12.5 billion in 1996 assets), with a 27.5% five-year growth rate. Television broadcasting ($64.9 billion in assets) has seen 23.9% annual growth over five years. In terms of total assets, however, the subscription video services industry dominates, with $104.4 billion in assets that have accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. at a 20.3% annual growth rate over the past five years. Single Year 1996: The industry saw a 29.9% rise in assets in 1996, beating the 20% increase of 1995. The biggest single-year 1996 jump in assets was that of radio broadcasting -- which saw a 186% growth in assets, due to the rapid consolidation of private radio broadcasting stations by public firms and the mark-up mark-up Noun an amount added to the cost of something to provide the seller with a profit Verb mark up to increase the cost of something by an amount or percentage in order to make a profit of the book value of assets acquired through merger or acquisition. The second highest increase was the television broadcasting segment, whose assets rose 67.3% in 1996. Filmed entertainment saw a 31.7% increase in assets, while both the recorded music (-5.6%) and the business to business communications field (-7.1%) saw drops. Operating Income Margins Five Year Trend: The greatest increase in operating income margins -- a commonly used measure of an industry's profitability -- saw the radio broadcasting industry experience a five-year rise of 8.1 points in profitability, from 10% margins in 1992 to 18% margins in 1996. The television industry saw a similar but smaller increase of 5.4 points over five years, from 13.3% margins in 1992 to 18.7% margins in 1996. Several industries have seen major drops in profitability over the past five years: interactive digital media has seen its margins drop by 26.0 points, from 27.8% to just 1.8%. Subscription video services has seen a 7.3 point drop, from 20.1% in 1992 to 12.8 in 1996 -- although within that segment, cable and pay per view networks have recorded a 5.5% increase. Consumer book publishing as well has seen a drop in margins -- down 4.8 points over the past five years. The communications industry as a whole saw margins drop just six-tenths of a point in the past five years. Single Year 1996: Excluding subscription video services (down 2.5 points), consumer books (down 2.5 points) and interactive digital media (down 8.3 points), most segments saw little or no change in their margins from 1995 to 1996. The communications industry as a whole saw margins drop just 0.4% from 1995 to 1996. The highest overall margins in 1996 were maintained by out-of-home media companies at 27.7%; television station broadcasters at 26.9%; radio station broadcasters at 18.0%, and the cable and pay-per-view pay-per-view n. A service offered by cable television companies that allows subscribers to view special programs for an additional charge. pay networks subsegment of the subscription video industry at 21.3%, a 3.3 point increase in a single year. Operating Cash Flow Five Year Trend: Operating cash flow for the communications industry as a whole hit $41.6 billion, up an annual compounded rate of 11.3% since 1992. Of all the segments, radio broadcasting has experienced the greatest increase in operating cash flow, with 26.1% annual compounded growth for the past five years. Within the radio broadcasting industry, radio broadcasting networks have experienced a 111% compound annual growth, with radio station broadcasters seeing 24.9% growth. The cable and pay per view network subsegment of the subscription video services industry has also been a leader, with operating cash flow growing at an annual rate of 22.9% over the past five years, in contrast with interactive digital media, which has seen negative compounded annual growth of 13.3% over the past five years. The consumer book industry also has experienced negative annual compounded growth of operating cash flow over the past five years of 3.9%. Single Year 1996: From 1995 to 1996, operating cash flow for the industry as a whole increased by 15.2%, compared with increases of 9.0% in 1995 and 10.6% in both 1993 and 1994. Professional and Educational Publishing saw the greatest one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants growth in operating cash flow, with a 34.2% increase. The training industry, which is a subsegment of that group, saw a 56.5% growth in 1996 operating cash flow. Radio broadcasting saw a 33.2% increase in 1996, followed by television broadcasting (up 27.1%); subscription video services (up 17.4%); and newspapers (up 15.7%). The poorest performer was the consumer book industry, which saw operating cash flow drop by 15.3% in 1996. Interactive digital media, with a 2.9% decrease, has seemingly seem·ing adj. Apparent; ostensible. n. Outward appearance; semblance. seem  ing·ly adv. moderated
its operating cash flow, which dropped 32.4% in 1995. The interactive
digital media industry was paced by 285.3% growth in OCF in the consumer
Internet-related services sector, and 173.4% growth in OCF in the
packaged PC/multimedia software sector in 1996.About the Report The 15th Annual Veronis Suhler & Associates Communications Industry Report is the most comprehensive compilation Compiling a program. See compiler. of financial data available concerning the communications industry, containing financial information on 456 publicly reporting companies in 14 communications industry segments. Each segment analysis includes five-year company data on revenue, operating income, operating cash flow, assets, and depreciation and amortization. Founded in 1981, Veronis Suhler & Associates Inc., is the leading independent investment bank specializing in the media. VS&A has provided investment banking services in over 375 completed transactions exceeding $20 billion in value. To purchase the 15th annual Report for $995, call (212) 935-4990. CONTACT: VS&A Grant Draper drap·er n. Chiefly British A dealer in cloth or clothing and dry goods. [Middle English, weaver or seller of cloth, from Old French drapier, from drap, cloth; see , 212/756-0490 or Allan Allan can refer to:
Allan Ripp, 212/721-7468 Jeff Barge, 212/721-8060 Andy Sprung, 212/721-3495 |
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