Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on HAVAS SA. We currently have 5 research reports from 1 professional analysts.
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More than ever under Bolloré family’s ascendancy...
31 Jan 17
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.
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.
M&A coming to a company near you?
16 Mar 17
Markets have retained their relative strength over the last fortnight. We have seen a mixed reaction to the Budget last week, the passing of the Brexit Bill earlier in the week and the first interest rate hike by the Federal Reserve in the US yesterday. Against this backdrop, we have seen some notable M&A activity across a range of sectors which may move down the market capitalisation scale. We now face an extended period of heightened speculation but “no running commentary” regarding Brexit in the UK after Article 50 is triggered at the end of the month.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
6% dividend yield for a growth stock?
16 Mar 17
4imprint’s proven operating model continues to steadily gain market share from a low base. Capital requirements are low, acquisitions unlikely, pension risk significantly reduced and, hence, future cash flow is likely to be returned to shareholders. We expect the current $22m net cash balance to be retained, providing a cushion against any macro downturns, and dividend growth to continue to match EPS, supplemented by special dividends when net cash builds (possibly every other year). As such, the free cash flow yield, 5.1% in FY2018E 5.8% in FY 2019E, is a proxy for the dividend yield, highly attractive in our view for a proven growth stock.
10 Mar 17
We have run our new quantitative Slide Rule over the Support Services sector. Of the c.500 stocks we have ranked on a Quality, Value, Growth and Momentum basis in the small to mid-cap space, 21 Support Services stocks appear in the top 100. Fulcrum leads the pack, ranked no. 6 out of 500 (and not coincidentally our top pick for the year), closely followed by Brainjuicer (no.7), Sanne (no.8), Learning Technologies (no. 12) and Next Fifteen (no.16). These stocks have high ROCE on both an EBIT and cash basis, strong growth prospects, earnings and share price momentum and valuations that, in this context, remain attractive. At the other end of the spectrum, HSS, Management Consulting, Serco, Mitie and Lakehouse appear towards the bottom of the rankings. Strong returns could, of course, be made if any of these turn their fortunes around, and management has been changed at Lakehouse, Serco and Mitie.
16 Mar 17
4imprint (FOUR): 6% dividend yield for a growth stock? (BUY) | Cambridge Cognition* (COG): Amgen uses CANTAB technology in trial (CORP) | Seeing Machines* (SEE): H1 results show steady operational progress (CORP) | Allergy Therapeutics (AGY): Pollinex Quattro Birch Ph III EU trial starts (BUY) | Capital Drilling* (CAPD): FY results in line, with turnaround in exploration activity (CORP)