An 81-page report from investment bank Berenberg on TV production house Banijay Group has issued ‘BUY’ advice to the bank’s clients and a price target of €13.50 (currently about €9) and a potential 52 per cent upside. Limited free float (only 9 per cent) and low coverage (five brokers), as well as a recent listing in 2022, make Banijay a bit of an unknown name for investors, in our view,” says the bank.

Banijay was founded in 2008 by Stéphane Courbit, who retains control over the business.

Banijay Group operates two divisions:

1) Banijay Entertainment (70 per cent of Group sales), which is the leading European content production and distribution company with hit shows including Peaky Blinders (pictured), Black Mirror, Big Brother, MasterChef and Survivor. It also provides live experiences under the Banijay Live sub-segment and recently launched a small Banijay Sports unit focused on “sportainment”; and…

2) Banijay Gaming (including Betclic and 30 per cent of Group sales), which is one of the most innovative and profitable European online betting companies. Benefiting from structural trends in both divisions, as well as higher growth in its more profitable and cash-generative Banijay Gaming division, the company is set to report 7.5 per cent sales and 22 per cent EPS CAGR over 2025-28E.

As for the bank’s view of the key risks for Banijay, it says the company’s success depends on retaining top creative talent. “Integration of acquisitions poses execution risk, particularly with larger transformational deals. Shifts in advertising spend or consumer demand could weigh on growth.”

The bank’s report stresses that Banijay Entertainment “faces intense competition from global studios and digital companies. Maintaining market share requires constant innovation and effective IP use. Scripted content brings high costs and execution risks for revenues and margins.”

“Banijay Gaming could face stronger competition, especially if online casinos open in France and Poland. Stricter regulation and higher taxes would pressure profitability. The business remains exposed to regulatory changes,” said Berenberg.

“The company is guiding for €7 billion in sales and above €1.2 billion in adjusted EBITDA by 2028E. Our estimates are 10 percent lower on revenue (3 percent below consensus), but we are broadly in line with the target on profitability, as is consensus,” added the bank’s report.

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Categories: Articles, Broadcast, Business

Tags: Banijay, bank, Black Mirror, Peaky Blinders