Edison has initiated coverage of Alter Ego Media’s stock, highlighting it as the only publicly traded company offering investors direct exposure to the Greek media and entertainment market.
The target price was set at €7.10 per share, offering significant upside potential of around 25% compared to the recent closing price of €5.68.
The key points of Edison’s analysis include:
• Strategic Transformation & Revenue Diversification: Edison highlights the successful implementation of the Group’s Strategic Transformation Plan. The goal of the strategic plan is to gradually reduce dependence on advertising revenue (which accounted for 88% of last year’s revenue) through the development of new, recurring revenue streams such as subscription services and a dynamic entry into the live entertainment and e-ticketing sectors.
• Strong Growth Prospects & Operating Leverage: As the report notably highlights, between fiscal years 2021 and 2025, the Group recorded an impressive compound annual growth rate (CAGR) of 16% in revenue and 28% in EBITDA. For the 2025–2028 period, Edison forecasts an average annual revenue growth of 11% and EBITDA growth of 14%, driven by the integration of new, higher-margin activities and the achievement of operating leverage. At the same time, it expects net profitability to strengthen further, driven by a reduction in content amortization and the normalization of the tax rate.
• Healthy Balance Sheet & Strong Shareholder Returns: The Group maintains an extremely conservative balance sheet, which offers great flexibility in capital investment and in capitalizing on future opportunities for more M&As. Edison forecasts double-digit annual dividend growth, starting at €0.20 per share for the current year, in conjunction with the implementation of the approved share buyback program.
• Live Entertainment & Ticketing Segment: The recent acquisitions of Stages Network and More.gr transform Alter Ego Media into a fully vertically integrated group. Edison estimates that this sector offers very significant growth prospects and, based on its estimates, will become the Group’s most profitable business, with the EBITDA margin expected to reach 50.4% by the end of 2028.
• Hidden Goodwill from Streaming Services (ANT1+): The valuation of €7.10 per share does not yet incorporate any financial contribution from Alter Ego Media’s strategic stake (33.33%) in the joint subscription-based streaming platform with the Antenna and Motor Oil Groups. The completion of the agreement is subject to approval by the Competition Commission, and its future success creates additional upside potential for the analysts’ consensus.