Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on HAVAS SA. We currently have 4 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
Slightly slowing organic growth, although on a tough basis of comparison
26 Oct 16
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 September reached €1,624m, up €74m (+4.8%) from a year earlier, and came after a €46.3m negative impact from forex (i.e. -3%) and a +5.1% impact from acquisitions (€78.4m). The FY16e guidance for top-line organic growth, which had been slightly upgraded from +2-3% to +3-4% in August is therefore more likely to be around +2.5% to +3% according to management who also said it was confident for FY17e
Slightly slowing Q2 organic growth but a solid full-year guidance
08 Aug 16
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 with €77m a year earlier. The FY16e guidance was slightly upgraded for top-line organic growth (from +2-3% to +3-4%) while reiterated for the operating margin (+10-15bp), which we estimate is underlining management’s traditional caution.
Solid top-line organic performance confirmed
23 Oct 15
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, implying a fairly low Q4 (c.+2%). This is, however, against a rather high basis of comparison and CEO Yannick Bolloré has stated that the macro-economic environment is not as good as three months ago, with LatAm namely deteriorating (organic growth down 0.9% over Q3). He reiterated his confidence in an improvement of around +30bps for the operating margin this year.
Impressive organic top-line performance, but modest profitability improvement
01 Sep 15
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 13.25% (H1 14 restated figures further to the retrospective application of IFRIC 21), despite a slight negative impact from the compensation ratio (61.5% versus 61.2%, reflecting the traditional H1 impact from bonuses), as the group pursued its efforts to reduce costs (namely continuing to review all its supplier contracts and reducing its lease costs, the latter being supported by the development of the Village concept). Management reiterated its 2015 guidance (+3% organic growth; +30bp in profitability). As a reminder, Asia-Pacific and LatAm generate only 15% of total revenues, which could cushion in the short term the latter's slowdown negative impact.
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
N+1 Singer - Morning Song 09-12-2016
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.
Zwillenberg moves his first chess piece
09 Dec 16
New CEO Paul Zwillenberg has followed up swiftly on the strategy update of a week ago with his opening move: cutting DMGT’s stake in Euromoney from 67% to 49% via a placing and buyback by Euromoney. Chess players might see this as something of a queen’s gambit, sacrificing something upfront (EPS dilution of c7%, c2% reduction to SOTP, significant reduction in reported FCF) in exchange for increased future financial flexibility (both for DMGT and Euromoney). We see this as a sound move strategically. Even so, we move back from Buy to Hold, reflecting the recent rally in the shares, a valuation no longer obviously cheap relative to peers (just under 15x calendar 17E EPS following this deal), plus lower confidence on long term growth prospects for the portfolio. Near term we see better value in a DMGT “synthetic” (one third each INF/ASCL/ITV) offering similar macro-exposures at a lower multiple (under 13x EPS).
Leveraging brands and data
24 Nov 16
Future is building and widening its revenue streams based on strong global brands and on a scalable delivery platform. Growth of revenues in categories such as eCommerce, events and digital advertising resulted in broadly maintained group FY16 revenues, while the margin has started to build, helped by operating leverage. The Imagine purchase, post year-end, brings further scale and efficiency. The lengthening record of delivery against expectations and the premium projected earnings growth are making the multiple increasingly attractive.