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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMUNICATIONS
- Not a big sector in the EUR space but the two main Entertainment names are amongst the worse performing names in both TMT and the broader €IG index this week.
- Warner/Discovery’s (Baa3/BBB-) EUR 27s are 6bps tighter today but still sit close to 20bps wider since the close on 10 April while Universal Music’s (Baa1/BBB) three EUR lines have widened by 15-18bps over the same period. Not much in terms of news at either; possibly just high beta moves to the risk tone.
- Not credits we have a very strong view on; UMG reported strong Q4 results with a nearly 10% beat on revenue and 15% QoQ subscriber growth with cost savings announced and a strategic focus on new relationships after the Tiktok fallout. Credit metrics were stable with flat FY FCF and leverage (0.9x) and the results snapped a period of underperformance. UMG equity saw a bump in early April on an expanded Spotify partnership but has pared the move.
- WBD saw worse performance at Q4 results; Revenue and EBITDA missed targets by 2% and 12% though FCF was well ahead of consensus. Leverage of 3.9x remains above the 2.5-3x target while FCF performance will likely moderate as the tailwind from the writers’ strike subsides.
- The moves bring spreads back to the levels roughly seen at Q4 reporting, curves trade in line with sector buckets.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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