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Combined Market Cap of World`s Top Media Companies Surged by $330B YoY

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The year 2020 was quite a year for the world’s largest media companies, with millions of people choosing their services amid the lockdown. This COVID-19-fuelled surge in the number of users led to the impressive growth of their revenues and market capitalization.

According to data presented by StockApps.com, the combined market cap of Walt Disney, Comcast Corp, Netflix, AT&T, and Charter Communications, as the five largest media companies globally, surged by $330bn year-over-year.

Walt Disney`s Market Cap Jumped by 85% YoY, the Biggest Increase Among the Top Five Companies

The media industry covers various areas, from advertising, broadcasting, and networking, to news, digital, recording, and motion pictures. Media companies operate within these areas and offer products and services to end-users from individuals to large organizations.

As the world’s largest media company, Walt Disney has a massive share in this market. Besides its media networks, parks and resorts, studio entertainment, and online and mobile games, the media giant has also grown its Disney Plus subscriber count to nearly 95 million as of March 2021, a 258% increase year-over-year.

The YCharts data revealed that Walt Disney also witnessed the most significant market cap increase among the top five media companies. In April 2020, the combined value of its shares stood at $179.8bn. By the end of the year, this figure jumped to $309bn and continued rising. Statistics show that in March, Disney’s market cap peaked at $350bn and then slipped to $332bn last week. Nevertheless, this still represents an 85% increase year-over-year.

The market cap of Comcast Corp, the second-largest media company globally, jumped by 52% in the same period, rising from $163bn in April 2020 to $248bn last week.

Established in 1963, the Philadelphia-based global media, entertainment, and communications company runs its business through several segments. Besides its cable networks, filmed entertainment, and broadcast television, including Telemundo and NBC, Comcast Corp also owns British media and telecommunication conglomerate Sky Group Limited.

As the third-largest media company on this list, AT&T hit $225.6bn in market cap last week, a 15% increase year-over-year. In April 2020, the combined value of shares of the US media giant stood at $210.2bn. Statistics show this figure rose by more than $15bn over the last twelve months.

Netflix`s Market Cap Up by $38B Since April 2020

Over the last decade, Netflix has exploded onto the media scene. The world’s fourth-largest media company transformed from a DVD-by-mail business into a streaming giant with 207 million subscribers as of March, almost 25% more than before the pandemic.

The YCharts data revealed that in April 2020, Netflix’s market cap amounted to $185.3bn. By the end of the last year, the combined value of shares of the streaming giant jumped by 25% to $233bn. Although this figure slipped to $223.2bn last week, it still represents almost a $38bn increase in a year.

Statistics show Charter Communications, as the fifth largest media company globally, witnessed a 38% market cap increase in the last year, with the figure rising from $102.4bn in April 2020 to $141.1bn last week.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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