Media Finance Outlook Q4 - Q1

“There’s enough momentum from advertisers wanting to spend the last of their 2021 ad budgets to enter next year with some momentum. Whether that can be sustained throughout 2022 remains to be seen.” — Digiday, Nov 15th.

Executive Summary:
While the Delta Variant had the world tapping the brakes last quarter, now the Omicron Variant has taken its place. Travel is expected be impacted moreso than with Delta. Economic outlook into 2022 shows increased usage of the word “stagflation” as inflationary indicators continue alongside indications of slower growth. For now, interest rates remain stable into 2022.

Indicators of Strength:

• “Global credit conditions in 2022 are poised to stabilize, although with stark differences across regions and economic sectors, Moody's Investors Service said in a new report. Steadying economic activity, supported by progress in vaccinations against COVID-19, will drive enhanced credit quality of debt issuers overall.”
  — Moody's, “Research Announcement: Global credit conditions to stabilize in 2022, but COVID-19 related challenges remain.”

Indicators of Weakness:

• “Many organizations are incorporating continued inflation into their plans and strategies for next year.”
  — by John O’Rourke, Financial Executives International
  

• “As supply-chain disruptions continue, we've lowered our U.S. GDP growth forecast to 5.5% for 2021 and 3.9% for 2022 (from 5.7% and 4.1%, respectively). Despite the slowdown, GDP is still likely to rise to a 37-year high in 2021, with solid readings for 2022, on continued economic demand from healthy balance sheets.”
  — S&P Global Ratings, “Economic Outlook U.S. Q1 2022: Cruising At A Lower Altitude.”