Year to Date Market Update

Year to Date Market Update

Key Takeaways

Total equity market value up by 3% since January 2021

The Media, Marketing, Information and Technology public equity markets continue to perform well, with total market value up by 3% since January 2021, albeit against a broader market backdrop which has seen other benchmark indices up by 7 – 12% over the same period.

2021 revenue growth of 17% across all sectors

2021 forecast revenue growth remains robust across all sectors at 17% vs. 2020, led by +27% growth across e-commerce and digital media, and in particular verticalized e-commerce and social media.

2021 EBITDA growth of 18% across all sectors

Strong outlook for 2021 EBITDA, with virtually every sector expecting double digit growth vs. 2020, other than for specific sub-sectors which continue to experience fall-out from Covid-19.

Valuation environment remains robust with the Media, Marketing, Information and Technology markets having increased by 3% ($420bn) since the start of 2021. This is underpinned by strong forecast 2021 revenue growth across all sectors, with an average of 17% across the market, representing total incremental revenue across the market of nearly $450bn

The total market value of the Media, Information and Technology Sectors has increased by 3% since January 2021

Following strong growth in 2020, E-commerce and Software have both seen a slight contraction in total market value (TMV)

  • The main drags on TMV growth through 2021 YTD have been e-commerce and Software. Whilst the growth outlook for these sectors remains positive, both sectors previously saw an exceptionally strong H2 2020, with TMV growth of 30% and 19% respectively
  • Investor demand for businesses exposed digital transformation solutions and best-in-class CX is similarly reflected in TMV growth in both Tech & Consulting Services (up 6%) and Insights (up 10%)
  • The Digital Media sector also continues to benefit from powerful tailwinds, including strong and growing  demand for digital engagement. It has continued to outperform, up 13% ($3,544bn of TMV) over the period

Forecast 2021 revenue growth of +10% for many sectors

  • Current market forecasts show robust 2021 revenue growth across virtually all sectors, driven by powerful tailwinds across many sub-sectors and a “bounce-back” in revenues in those sectors most severely affected in 2020
  • Total revenue growth from 2020 to 2021 is forecast at c.17%, representing an aggregate increase in revenues across all sectors of close to $450bn, with double-digit percentage growth expected across many sub-sectors

Driving double-digit EBITDA growth for 2021

  • The strongest growth of 36% is expected for e-commerce, showing a limited correlation with the change in TMV
  • Digital Media is forecast to be the second highest performer with growth of 32%, with Search and Social Media being the key drivers as both audiences and advertising dollars drive growth in the sector

Current market forecasts show that FY21 revenue growth across the Media, Information and Technology sectors is expected to be 17% fueling an 18% average EBITDA growth across the sectors in the same period