JSE-listed media stocks have benefited from SA's buoyant consumer confidence levels as much as the country's retailers have over the past few years.
The media index was among the best-performing sectors on the local bourse last year, largely driven by the surge in share prices of the publishing and electronic media groups.
During the past year, Johnnic Communications (Johncom) shares climbed 79,9% to reach more than R60. Johncom owns the Sunday Times and Nu Metro.
Naspers, owner of MultiChoice and myriad newspapers, saw its shares jump 71% to more than R123; while free-sheet and Citizen publisher Caxton's shares rose 60,4%, to more than R16,60.
Gryphon Asset Management portfolio manager Abri du Plessis said that as impressive as the run had been, the shares were not expensive yet. Although not expecting a repeat from last year's strong growth, he believes the sector should still have a strong year.
On the print side, Du Plessis said he expected the upswing in circulation and advertising spending to continue to flourish.
However, on the electronic media front, he said a slowdown in growth could be expected this year.
Outside of the positive markets in which the listed media operators find themselves operating, both Johncom and Caxton's shares have been boosted by speculation over corporate activity involving the two.
Over the past week, Johncom's shares have increased 7,6% and Caxton's 10,7%.
Caxton has been tipped to take a lead role in a possible Johncom empowerment deal, which could see the entry of three of the country's most prominent black businessmen, Cyril Ramaphosa, Patrice Motsepe and Tokyo Sexwale.
Naspers' shares have been boosted by the performance of its 36% interest in Chinese operation Tencent, which listed in Hong Kong in June 2004.
Radio-focused media companies such as Kagiso Media, with 11,7% share growth over the past year, Primedia (27,9%) and African Media Entertainment (AME) (42,9%), have not fared as well as the print and electronic media groups.
Du Plessis hopes that trend will be corrected this year. "These shares will play some catch up and they are also more cyclical shares."
AME, with its 42,9% share climb, has been one of the surprise performers among the radio players. The operation has interests in OFM and Algoa FM.
Last July, AME put forward a R21m bid for New Africa Investments Limited's (Nail's) last remaining asset -- a 24,9% interest in Gauteng-based radio station Kaya FM.
Last week the group increased its offer to R25m.
AME is going up against Primedia, which put forward a R19m bid for Nail's entire issued share capital in December 2004.
Radio advertising has not been as buoyant as print and television, as retailers preferred the other formats last year.
