DJ Tech, Media & Telecom Roundup: Market Talk

The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0759 GMT - Chinese video-gaming companies' shares could gain in 4Q on the possible release of Tencent's "League of Legends: Wild Rift" and expectations that China could begin approving new games in November after holding off on approvals since August, Jefferies says. Even though China instituted new rules on online-gaming activity for minors, overall game demand should still be strong, as indicated by the better-than-expected performance of NetEase's "Harry Potter: Magic Awakened" release in September. Further, Jefferies estimates that just 15%-20% of China's gamers are minors, so most users won't be hit by the new rules. (yongchang.chin@wsj.com)

0602 GMT - Singtel's sale of a 70% stake in an Australian subsidiary could reduce the pressure on its balance sheet, Fitch Ratings says. Proceeds from the A$1.9 billion deal could be reinvested in faster-growing businesses and used for deleveraging, it notes. But Fitch raises concerns about Singtel's likely moderating recovery prospects amid continued travel restrictions in Asia, which would affect roaming revenues, as well as stiff competition across its markets. "We believe a disciplined financial policy will remain a key driver for our stable outlook on Singtel's ratings," Fitch says. (yifan.wang@wsj.com)

0536 GMT - LG Display may post weaker-than-expected 3Q earnings on softer demand for electronics set devices, KTB Investment & Securities says. The South Korean flat-screen maker likely suffered from 13% lower panel prices during 3Q. KTB estimates LG Display's 3Q operating profit at KRW628.70 billion, below its compiled market consensus of KRW752.80 billion. But KTB remains bullish on the company's expanding organic-light-emitting-diode business that replaces the old liquid-crystal-display business, and expects OLED to account for 40% of 2021 revenue. KTB cuts the stock's target by 25% to KRW24,000 and keeps a buy rating. Shares fall 3.3% to KRW17,500. (kwanwoo.jun@wsj.com)

2332 GMT [Dow Jones]--UBS's upgraded outlook for Australia's metropolitan free-to-air TV advertising market drives big price target hikes for both Nine Entertainment and Seven West Media. The investment bank looks at recent booking data and sees market revenue growing by 6.5% in the 2022 fiscal year, compared with a previous expectation for growth of 4.0%. It also agrees with Nine's contention that the market is at an inflection point, and that on-demand broadcast revenue could offset declines in traditional linear broadcasting within 3-5 years. UBS lifts target price for Nine by 24% to A$3.85, and for Seven by 38% to A$0.90. Nine shares are up 2.3% at A$2.65. Seven shares are up 5.1% at A$0.41. (stuart.condie@wsj.com)

2204 GMT - Palantir shares soar in after-hours trade after securing its first contract award under a refresh of the U.S. Army's intelligence network. Palantir and BAE Systems share the $823M program under an award made last year, and the UK-based company secured a contract in 2020. Palantir, which has used the Army as an entry point into broader Pentagon work, and Raytheon are also under contract for a separate part of the program. Palantir shares up 13% after the close. (doug.cameron@wsj.com; @dougcameron)

1713 GMT - Shares of Brazil's Locaweb Servicos de Internet SA fell Tuesday after the IT services management company said it agreed to buy Squid Digital Media Channel LTDA. for about 176.5M reais, the equivalent of $32.3M. Locaweb shares were down 1.5% in mid-afternoon trading, while Brazil's benchmark stocks index, the Ibovespa, was up 1.1% at the same time. Squid connects online influencers and content creators with brands, while Locaweb is a web services and cloud hosting provider. Analysts at online brokerage XP Investimentos said they see the purchase of Squid as positive because it adds to Locaweb's ecosystem, and maintained its "Buy" rating for Locaweb. (jeffrey.lewis@wsj.com)

1405 GMT - The FCC launches its latest auction of wireless spectrum licenses, having opened its first round of bidding at 10 am ET. The 3.45-gigahertz licenses for sale sit close on the radio spectrum to the C-band frequencies auctioned off earlier this year for a record $81B, though similarities end there. This latest auction allows companies to use frequencies that must be shared with the Department of Defense, its existing user, and bids must top about $14.8B or the sale will be scrapped. New Street Research predicts telecom companies like AT&T and T-Mobile will easily push bids up to $25B or more when all is said and done. (andrew.fitzgerald@wsj.com; drewfitzgerald)

1358 GMT - Booz Allen Hamilton CEO Horacio Rozanski says strategic acquisitions are the priority for the $4B in capital it plans to allocate through fiscal 2025, a shift for the government IT contractor that's hitherto focused on smaller, bolt-on deals. May's $725M deal for health-focused Liberty IT Solutions is Booz's largest to date. Rozanski says at an investor event that he expects a transformation in government services over the next several years, focused on digitization. (doug.cameron@wsj.com; @dougcameron)

1350 GMT - Today's Facebook hearing will once again showcase an unlikely alliance that's developed between Sen. Richard Blumenthal, a liberal Connecticut Democrat, and Sen. Marsha Blackburn, a conservative Republican who represents Tennessee. Both senators have criticized big tech for years, with Blumenthal bringing a more consumerist perspective while Blackburn often has focused on family welfare issues, as well as perceived political bias of the big tech firms. The senators will be questioning Frances Haugen, the former Facebook employee who gathered documents that formed the foundation of The Wall Street Journal's Facebook Files series. (john.mckinnon@wsj.com)

1344 GMT - The local listing of MTN Group Ltd.'s Ugandan unit is the largest ever on the local bourse, boosting trading across the 17-member local stock market, says stock regulator, Capital Markets Authority. The listing of some 20% of MTN's shares is expected to raise some $1.2B, part of the company's move to fulfil license obligations, months after winning a 12-year license extension. With some 15 million subscribers in Uganda, MTN has already listed in Nigeria and Ghana, as authorities across Africa seek more local ownership in the quickly growing telecom industry driven in part by expanding internet penetration and expanding young populations. (nicholas.bariyo@wsj.com; @Nicholasbariyo)

1300 GMT - Unity Software says it is developing technology that will enable sports fans to watch matches -- recorded or live -- from any angle of their choosing. Viewers will also be able to hover over any athlete to call up stats such as age and achievements with a tap on a screen or controller, said Peter Moore, senior vice president of sports and entertainment at the software company. An early version of the technology is expected to roll out as soon as next year for manipulating recorded video of mixed-martial-arts matches through a collaboration between Unity and Ultimate Fighting Championship. Eventually, it will extend to live competitions and sports with lots more athletes competing on large fields or courts. "In the long term, every major sporting event will be captured," he said. (sarah.needleman@wsj.com; @saraheneedleman)

0844 GMT - The head of the French Competition Authority, Isabelle de Silva, will leave her post on Oct. 13, a development that could represent an opportunity for the merger between French TV networks TF1 and M6, Bryan Garnier says. "The president now has the opportunity to appoint a new chairman for the authority, and thus make sure he chooses someone who has a positive stance vs. the merger--if he wishes," Bryan Garnier says. The European investment bank notes De Silva remained neutral on the deal, while the government made declarations in favor. (mauro.orru@wsj.com; @MauroOrru94)

(END) Dow Jones Newswires

October 06, 2021 04:20 ET (08:20 GMT)

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