NEP/NCP Holdco Inc.

Overview Key strengths Key risks Strong market position as one of the largest global providers of outsourced production services for sporting events and entertainment. Elevated leverage and low FOCF due to the very high capital intensity of the business Good geographic footprint and scale in a fragmented landscape of smaller regional players. Macroeconomic exposure within its live events business and a still-nascent virtual studios production segment Good revenue visibility from relationships with its clients and high contract renewal rates. Client concentration risks, especially in its broadcast services segment. The recovery of NEP?s live events segment drove most of the revenue and EBITDA growth over the last 12 months, with significantly fewer COVID-19-related disruptions to events over the last year. EBITDA

...NEP/NCP Holdco Inc. (NEP) continues to recovery post-pandemic with significant growth in its live events and broadcasting segments. The recovery of NEP's live events segment drove most of the revenue and EBITDA growth over the last 12 months, with significantly fewer COVID-19-related disruptions to events over the last year. EBITDA grew 22% in the nine months year-to-date ending Sep 30, 2022. We expect the company will benefit from continued stable growth within the broadcast segment while its live events segment could face macroeconomic headwinds going into 2023....

Full Report