Sales Growth Is More Important Than Margin for Media Groups in AI Era -- Market Talk

Dow Jones01-12

1514 GMT - European media companies should prioritize investing in boosting sales growth over protecting profitability in the artificial intelligence era, Citi analysts say in a research note. AI fears, not financial health, drove share moves across Europe's media sector last year, according to Citi. "In lieu of concrete proof-points that can mitigate perceived AI risks, product development spend will become an increasingly important [key performance indicator] as the market views it as a proxy for innovation and ability to defend against AI-enabled competitive threats," the analysts say. Citi starts coverage of Pearson, Publicis and Wolters Kluwer stocks with buy recommendation, and Informa, RELX, and WPP with neutral recommendations. The Stoxx Europe 600 Media index is down 0.65%. (adria.calatayud@wsj.com)

(END) Dow Jones Newswires

January 12, 2026 10:14 ET (15:14 GMT)

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