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Havas reported a very poor H1 17, confirming the tough environment currently faced by the global advertising agencies. Q2 17 revenues declined by 0.9% organically (compared to Q2 16 at +2.7%) after only +0.1% was registered over Q1, leaving the H1 17 top-line organic revenue performance at -0.4% (H1 16: +3%). The reported revenues at 30 June reached €1,108m (from €1,087m a year earlier) and come after a €9.6m positive impact from forex (i.e. +0.9%) and a +1.5% impact from acquisitions (€16.2m
Companies: Havas
AlphaValue
The Bolloré Group will finally sell its 59.7% stake in Havas to Vivendi at €9.25 per share, i.e. a c.9% premium compared to its last price on the stock market. This is equivalent to €2.36bn, which will be paid in cash by Vivendi.
Havas announced yesterday the departure of Global CEO of Havas Creative Group and Havas Worldwide, Andrew Benett. Effective immediately, Yannick Bolloré, already Chairman and CEO of Havas Group, will replace him as Global CEO of Havas Creative Group.
Havas’ Q3 16 revenues grew by 2% organically (on a tough basis of comparison as Q3 15 was +5.5%) after +2.7% in Q2 and +3.4% in Q1, leaving the 9 months 2016 underlying top-line performance at +2.7% (9 months 2015: +6%). The Q3 organic trend was supported by Europe (+7.7%) while Asia Pacific and LatAm were down respectively 7.1% and 6.3%. The North American decline (-1.2%; 0% ytd) is said to be against a high base-line with Q4 and FY17e expected to see improvements. Reported revenues at 30 Se
Havas’ revenues grew by 2.7% organically over Q2 16 after the +3.4% registered over Q1, leaving the H1 16 top-line organic revenue performance at a very decent +3% (Publicis: +2.8%). Reported revenues at 30 June reached €1,087m, up €53m from a year earlier, and came after a €29m negative impact from forex (i.e. -2.8%) and a +5% impact from acquisitions (€51m). Consolidated OP improved by 6.8% to €146.7m, i.e. a 20bp margin improvement to 13.5%. Group share net income amounted to €82.4m compared
After the solid H1 15 figures (organic revenue growth of +6.3%), Havas produced a satisfactory set of Q3 15 figures with revenues up 5.5% organically (despite a tough basis of comparison as Q3 14 was +6%). The 9 month performance was thus +6% (9 months 2014: +5.8%), with total reported revenues of €1,550m, up 18.1% or +€337m (including a €121m positive impact from forex). Management however maintained its previous guidance for the full-year for consolidated revenues to rise by +5% organically
Havas has just produced solid H1 15 figures with organic revenue growth reaching +6.3%, higher than its main competitors as Publicis delivered +1.2%, WPP +4.9% and Omnicom +5.2% and despite a rather unfavourable basis of comparison (H1 14 was +5.7%). This nonetheless reflects some slowdown in Q2 to +5.5% after +7.1% in Q1. Reported revenues rose by 19.2% after a positive forex impact of €85.6m (US$ rise versus the euro) and a €20m impact from acquisitions. The operating margin improved 22bp to
Research Tree provides access to ongoing research coverage, media content and regulatory news on Havas. We currently have 7 research reports from 1 professional analysts.
S4 Capital had a difficult FY23, as flagged, with reduced client confidence and spend, particularly from those clients in the tech sector, and on larger transformation projects. Management is cautious in the short term, with no substantive changes likely in H124, but sees conditions likely to improve in H224 as economic pressures ease. The group’s longer-term prospects should be buoyed by its positioning across data and digital marketing and, in particular, in incorporating AI into hyper-persona
Companies: S4 Capital plc
Edison
S4 Capital reported FY23 EBITDA of £93.7m vs DCe £89.6m and we retain our lower end 2024 forecast for £90.2m.
Dowgate Capital
Team Internet’s FY23 results exceeded our forecasts and consensus on revenue and EBITDA. Online Marketing was driven by increased consumer engagement, reflecting investment in delivering more targeted ads across a wider array of channels. The group’s latest acquisition, Shinez, strengthens Online Marketing via diversification of publishers and is earnings accretive with scope for further synergies. Online Presence returned to strong revenue growth, driven by demand for exotic domains, pricing op
Companies: Team Internet Group plc
XLMedia has announced the sale of its Europe and Canada sports and gaming assets to Gambling.com Group for a total consideration of $42.5m ($37.5m fixed, $5m earnout). The sale is in-line with its recently stated strategy to maximise value for shareholders including the disposal of assets where opportunities arise. The proceeds will be used to settle outstanding tax and acquisition liabilities, invest in the US business and return significant sums to shareholders. Applying peer multiples to the
Companies: XLMedia Plc
Cavendish
We are reiterating our Buy rating and $0.25 price target for Starco Brands with the company announcing 4Q23 (December) results after the close on Monday. We believe 2024, with a full compliment of unique, value-added brands which leverage Starco's aerosol and marketing infrastructure in hand, and a laser focus on adding key categories and new relationships, is shaping up as another year of material progress for Starco. We believe there are also continued margin expansion opportunities from both
Companies: ELF EL STCB EPC COTY IPAR DGE IPAR EL UNILEVER EPC STCB ELF COTY
Small Cap Consumer Research LLC
Team Internet’s FY23 results confirmed another strong year of trading from its Online Marketing and Online Presence businesses. Both revenue and EBITDA growth remained in double digits, margins on net revenue continued to improve, and cash conversion remained strong. We continue to believe that the Group has substantial long-term growth opportunities including international expansion, new partner development, and vertical integration. In our view, Team Internet’s strong track record, cash genera
Zeus Capital
Following the record FY23 results announced yesterday, Team Internet announced an accretive bolt-on acquisition for an initial consideration of $42m. The Group is continuing its strategy of making accretive bolt-on acquisitions, aiming to diversify its revenue model and expand its traffic monetisation options and capabilities. The deal is expected to complete in late May 2024, at which point we will incorporate the impact into our forecasts. We continue to believe that Team Internet’s strong tra
Companies: JDW MAB MARS WTB FSTA BOWL CPG SSPG LGRS SSTY OTB HSW TMO GYM MEX
Liberum
Companies: EBQ NFG SAA SFOR
A first commission for Netflix and a material extension of an existing commission for Warner Bros. Discovery highlight continuing strong momentum in 2024 for STV’s Studios division. As well as underpinning current estimates, they point to a continuing broadening out of the client base and scope of work at STV Studios, as the group continues its long-term migration from a traditional broadcaster to a digital streaming and content provider.
Companies: STV Group plc
Progressive Equity Research
Companies: Mission Group Public Limited Company
Canaccord Genuity
Companies: DUKE NEXN BOOM
The Great Correction of 2022 saw the share prices of streamers plunge after market leader Netflix reported a slowdown/fall in subscriber growth. Having formerly been seduced by hectic subscriber growth rates, investors quickly refocused, this time on fundamental metrics such as revenue, margins, profits and cashflow. Since then, streamers have continued to take a steadily greater share of viewing while linear TV continues to decline. But growth in streaming subscribers in the US and UK is now a
Companies: AMZN DIS WBD NFLX NFLX ITV STVG PARA AMZN DIS
Hardman & Co
Companies: Eagle Eye Solutions Group PLC
Shore Capital
WPP’s capital markets day (CMD) focused on the combination of creativity and AI at scale and how these can be leveraged to boost clients’ businesses. Outline Q423 performance figures were given, along with updated forward guidance, including on restructuring costs and potential payback. We expect market expectations to be broadly unchanged. The overarching narrative of consolidation and simplification, common data platforms and standardised reporting, is coherent and supports the projected margi
Companies: WPP Plc Sponsored ADR
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