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.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
N+1 Singer - Morning Song 23-02-2017
23 Feb 17
Genus (GNS LN) Interim results: R&D step-up, disappointing ABS performance | Howden Joinery Group (HWDN LN) Prelims and net cash better than expected but conditions weaken | Oxford Pharmascience Group (OXP LN) Encouraging interim OXPzero™ Ibuprofen exploratory PK data | StatPro Group (SOG LN) Increased majority shareholding in Infovest Consulting | Wilmington Group (WIL LN) Interims slightly ahead, move to focus on 3 verticals
Another positive financial performance in FY16
23 Feb 17
As expected, RELX produced satisfactory FY 16 results, with organic revenue growth positively accelerating to +4% (FY15 at +3%). Consolidated revenues reached £6,895m (+15%) after a total forex impact of +11%, reflecting the weakness in sterling versus both the US dollar and euro (only 7.3% of sales in the UK). The group’s adjusted OP amounted to £2,114m, up 6% organically (+16% reported) and reflecting an improving margin to 30.7% from 30.5% in FY15, although slightly under our 31% expectation. The adjusted EPS increased by 8% at CER to 72.2p (AV: 71.8p). The full-year dividend is raised 21% to 35.95p (AV at 34.8p) after a final at 25.7p from 22.3p a year earlier (as a reminder, the group had announced in August a larger than usual interim dividend primarily due to end-period forex). RELX announced a new £700m share buy-back programme for FY17e (£100m completed so far) after £700m completed in FY16 and is confident to deliver in FY17e “another year of underlying revenues, profit and earnings growth”, a positive statement although as vague as usual.
Back to Hold, See More Risk than Reward in the Near Term
17 Feb 17
Ahead of prelims on March 1st, we tweak estimates and move back from Buy to Hold. We do still see good long term value in ITV, based on a resilient structural position in UK TV viewing. However, after a 30% bounce from post-Brexit lows of c160p, we now see more negatives than positives looming in the near term. The risks include NAR weakness, studios trading, management change, and content acquisitions such as ETO. We do see possible upsides from retransmission costs and from bid vulnerability – but also a strong case for likely bidders to sit on their hands for now. We lower our Target Price from 265p to 225p, and travel cautiously into these prelims.