Sports Entertainment Group Limited (SEG) AI Stock Analysis

• Market Cap: AU$83.24M
• Dividend Yield: 6.67%
• Average Volume (3M): 8.93K
• Price to Earnings (P/E): 20.4
• Beta (1Y): -1.03
• Revenue Growth: 0.33%
• EPS Growth: N/A
• Country: AU
• Employees: 55
• Sector: Communication Services
• Sector Strength: 81
• Industry: Broadcasting
• EPS (TTM): >-0.01
• Shares Outstanding: 277,455,900
• 10 Day Avg. Volume: 22,927
• 30 Day Avg. Volume: 8,932
• PEG Ratio: 0.02
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: AU$0.50 ▲(66.67%Upside)

The overall stock score of 71 reflects positive financial performance with revenue growth and profitability improvements, albeit with some risks from leverage and cash flow declines. Technical analysis indicates bullish trends, though caution is warranted due to potential overbought signals. Valuation is fair with attractive dividend yield.

Sports Entertainment Group Limited Business Overview & Revenue Model

Company Description

Sports Entertainment Group Limited engages in sports media content and entertainment business in Australia and New Zealand. It operates in four segments: Media Australia, Media New Zealand, Complementary Services, and Sports Teams. The company operates various radio stations, such as SEN 1116, SEN 1170, SEN 1629, SEN WA, SENQ, SENZ, SENTrack, and SEN Spirit; and publishes AFL Record, a weekly match-day magazine content, as well as Lifestyle1 magazine. It also broadcasts live sports and podcasts; and TV shows, such as The Oval Office, Footy SA & WA, Off The Bench, and Women's Footy. In addition, it operates Perth Wildcats basketball team. The company delivers its brand content stories to national, metropolitan, and regional audiences through various platforms, such as radio, print, television, online, in-stadium, events, and teams. The company was formerly known as Pacific Star Network Limited and changed its name to Sports Entertainment Group Limited in November 2020. Sports Entertainment Group Limited was incorporated in 1987 and is headquartered in Southbank, Australia.

How the Company Makes Money

Sports Entertainment Group Limited generates revenue through multiple streams, primarily focusing on advertising, sponsorships, and content distribution. The company's radio stations attract advertisers looking to reach sports enthusiasts, while their digital platforms offer opportunities for online advertising and sponsored content. Additionally, SEG leverages partnerships with sports leagues and organizations to enhance content offerings and attract larger audiences. Live events and promotions also contribute to the company's income, providing unique experiences for fans and additional advertising opportunities for brands.

Sports Entertainment Group Limited Financial Statement Overview

Summary

Positive revenue growth and improved profitability with better margins and return on equity. However, moderate leverage and declining cash flow generation present potential risks.

Income Statement

The income statement shows a positive trend in revenue growth, increasing from $117 million to $124.57 million, and a notable improvement in net income from a loss of $9.29 million to a profit of $3.12 million. Gross profit margin improved to 61%, and the net profit margin turned positive at 2.5%. EBIT margin also improved, highlighting operational efficiencies. However, historical volatility in EBIT and net income margins suggests some operational risks.

Balance Sheet

Sports Entertainment Group Limited has a debt-to-equity ratio of 0.78, indicating moderate leverage compared to equity. The equity ratio is 37.8%, which reflects a decent proportion of assets funded by shareholders. Return on equity improved to 5.6%, showcasing better profitability. However, the company has a significant amount of debt, which could be a risk if cash flows fluctuate.

Cash Flow

The cash flow statement indicates a decline in operating cash flow from $8.12 million to $4.26 million, suggesting a potential issue with cash generation. Free cash flow decreased from $3.46 million to $2.47 million, reflecting reduced cash available after investments. The operating cash flow to net income ratio is 1.37, suggesting reasonable cash generation relative to earnings, but the decline in free cash flow growth is concerning.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	118.80M	124.57M	117.03M	108.09M	70.03M	65.02M
Gross Profit	86.25M	76.01M	66.43M	62.01M	36.97M	31.78M
EBITDA	7.38M	8.97M	7.60M	14.78M	10.94M	847.00K
Net Income	33.87M	3.12M	-9.29M	3.17M	2.04M	-5.21M
Balance Sheet
Total Assets	150.55M	147.16M	148.83M	148.91M	121.51M	90.64M
Cash, Cash Equivalents and Short-Term Investments	11.86M	10.74M	5.92M	12.63M	5.32M	7.65M
Total Debt	30.87M	43.52M	51.28M	48.41M	37.18M	28.37M
Total Liabilities	71.81M	90.95M	99.82M	90.03M	72.83M	48.41M
Stockholders Equity	78.76M	55.70M	49.02M	58.88M	48.69M	42.23M
Cash Flow
Free Cash Flow	5.25M	2.47M	3.46M	1.49M	-3.26M	3.99M
Operating Cash Flow	5.62M	4.26M	8.12M	9.95M	6.58M	12.83M
Investing Cash Flow	26.80M	3.98M	-15.22M	-11.42M	-10.46M	-16.61M
Financing Cash Flow	-21.52M	-3.43M	399.00K	8.95M	1.55M	7.26M

Sports Entertainment Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SEG, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.25, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.84 is Negative, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SEG.

Sports Entertainment Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEG	71 Outperform	AU$83.24M	20.41	-1.83%	6.67%	0.33%	―
GTN	70 Outperform	AU$120.12M	20.26	2.80%	7.84%	2.57%	55.50%
Sector *	62 Neutral	$40.76B	-1.15	-12.05%	3.90%	2.03%	-69.70%
PPL	61 Neutral	AU$55.86M	37.14	27.08%	―	23.76%	―
BBL	59 Neutral	AU$95.10M	16.64	12.53%	2.06%	10.42%	1.57%
MXO	53 Neutral	AU$13.93M	―	-18.57%	―	33.99%	64.89%
ST1	51 Neutral	AU$87.48M	―	-9.56%	―	2.00%	52.47%

Sports Entertainment Group Limited Corporate Events

SEG Acquires RSN, Becomes Sole Racing Broadcaster in Victoria

Sports Entertainment Group Limited (SEG) has announced its acquisition of the brand and broadcasting assets of 3UZ Pty Ltd (RSN), positioning itself as the sole dedicated broadcaster of racing in Victoria across all three codes. This strategic move, funded by SEG’s cash reserves, is expected to be earnings accretive by FY26 and aligns with the company’s growth strategy, enhancing its audio and digital ecosystem while preserving RSN’s legacy. The acquisition, which is subject to customary conditions, will also see SEG providing RSN programming on simulcast to racing.com, further expanding its reach and impact in the racing industry.

Sports Entertainment Group Projects Strong Financial Growth and Strategic Expansion

Sports Entertainment Group Limited has upgraded its FY25 financial guidance, forecasting EBITDA growth of at least 40% compared to FY24, driven by strong cost governance and growth in its ‘Complementary Services’ units. The company has also undertaken strategic initiatives, such as producing Channel 7’s football shows and securing TV production rights for Harness Racing Victoria, positioning itself for continued growth in FY26.

Sports Entertainment Group Announces Director’s Interest Change

Sports Entertainment Group Limited announced a change in the director’s interest, with Jodie Simm acquiring 931,193 performance rights under the company’s Performance Rights Share Plan. This change reflects an estimated valuation of $223,486 and indicates a strategic move to align the director’s interests with the company’s performance, potentially impacting the company’s governance and stakeholder confidence.

Sports Entertainment Group Announces Director’s Interest Change

Sports Entertainment Group Limited announced a change in the director’s interest, specifically involving Craig Hutchison. The change includes the acquisition of 2,363,668 performance rights by Craig Hutchison Media Pty Ltd, valued at approximately $567,280. This move underlines the company’s commitment to aligning its leadership’s interests with its performance goals, potentially impacting its strategic direction and shareholder value.

Sports Entertainment Group Updates Director’s Interest with Performance Rights

Sports Entertainment Group Limited announced a change in the director’s interest notice, involving Chris Giannopoulos. He has been granted 1,007,658 performance rights under the company’s Performance Rights Share Plan, with an estimated valuation of $241,838. This change reflects the company’s strategy to incentivize and retain key personnel, potentially impacting its operational dynamics and stakeholder interests.