Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PUBLICIS GROUPE. We currently have 6 research reports from 1 professional analysts.
|30Nov16 08:12||PRN||MSLGROUP Acquires North Strategic In Canada|
|10Nov16 10:28||GNW||Press Release Pasteur Weizmann|
|27Oct16 06:15||GNW||Publicis Groupe Announces Chief Revenue Officer Laura Desmond's Resignation|
|25Oct16 08:30||GNW||Publicis Groupe: Nomination of Michel Marques, Vice President Compensation & Benefits|
|20Oct16 08:53||PRN||Publicis Groupe CEO interview - Q3 2016 revenue (video)|
|20Oct16 08:53||PRN||Publicis Groupe CEO interview - Q3 2016 revenue (video)|
|20Oct16 06:30||GNW||Publicis Groupe: Third Quarter 2016 Revenue|
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A tough H2 16e with improvement still expected in FY17e
20 Oct 16
Publicis has just released slightly lower than expected Q3 organic revenue growth of +0.2% versus +0.8% for consensus. On a reported basis, total revenue amounted to €2.32bn, down 0.4% and up 1.5% at constant currency. For the 9-month period, the organic revenue growth was +1.9% (reported: +2.9% to €7,068m and +5.2% at CER).
Good H1 16 and focus on executing the new organisation for H2
04 Aug 16
Satisfactory set of results for H1 16 Publicis reported satisfactory results with revenues up 2.8% organically for the period (reported: +4.6% to €4,753m) and a flat operating margin of 13%. FY16 guidance is still for Q3 organic growth to be impacted by the FY15 account losses but the group positively confirmed solid progress in delivering savings and Sapient synergies. Publicis’ reorganisation/ transformation, leading to the creation of four “Solutions hubs” dedicated to serve clients on a transversal basis, was completed as of end-H1 16. Working on the execution will now be the focus over the next few months.
A promising start to the year, although still cautious for FY16e
19 Apr 16
Publicis reported much higher figures than expected with Q1 16 organic revenue growing +2.9% compared with its previous guidance of stable or slightly negative at worst. This is therefore far above a consensus expectation of +0.3% and our own flat forecast. Consolidated revenues for the quarter reached €2,291m, up 8.9% on a reported basis and +10% at CER.
Restored credibility and a transition year ahead...
11 Feb 16
Publicis reported better than expected Q4 organic revenue growth of +2.8% when the market expected less than 1% after the poor Q3 and 9 months trends (respectively +0.7% and +1%). For the full year, the organic revenue growth therefore reached +1.5%, above management's guidance of around +1%, with revenue amounting to €9,601m, up €2,346m from the previous year and positively impacted by forex (+€823m impact or +11.3%) and the integration of acquisitions (+€1,399m total net impact or +19.3%, namely coming from Sapient). The full-year adjusted OP was €1,487m, reflecting a 15.5% operating margin slightly above the consensus of 15.4% and compared to 16.3% in FY14. Headline net profit amounted to €901m and EPS to €4.39, up 20.6% and slightly above our €4.19 forecasts. The proposed dividend per share is raised by 33.3% to €1.60, giving a good signal to the market (payout at 39.5% from 37.3% in FY14 and FY18 goal reiterated at 42%). The FY16e guidance is highly cautious, pointing to modest organic revenue growth but with an improvement expected for all the group's financial metrics. Management estimates FY17e will show all the benefits on growth and margins coming from the current ongoing reorganisation/transformation.
Worrying poor Q3 organic trends...
22 Oct 15
Unexpectedly, Publicis reported Q3 15 organic revenue growth of only +0.7% (9 months 15: +1%), an all the more disappointing performance in that the basis of comparison was rather easy (Q3 14 had been only +1%) and that, as recently as end-July, the group was highly confident in producing a "very very strong Q3", thanks to a solid pipeline and strong spending plans from clients... Q3 revenues amounted to €2,325m, up €577m from a year earlier, positively impacted by forex (+€182m impact or 10.4%) and the integration of new businesses (+€381m impact or 21.8%). Year-to-date, consolidated revenues amounted to €6,867m (+34.5% or +€1,761m), up only 1% on an organic basis, impacted by poor North American activities (+0.9% organic) and declining LatAm revenues (-6%). Management is now expecting Publicis' revenues to rise organically by round +1% versus at least +2.5% and +3% to +3.5% earlier this year...
Satisfactory operating margin despite still low organic trends
28 Jul 15
Publicis produced a better than expected operating margin over H1 15 (flat at 13%) despite still poor top-line organic growth (Q2 at 1.4%, improving from +0.9% in Q1; H1 at +1.2% when Omnicom is at +5.2%). Reported figures were boosted by the forex impact (+14.2% on revenues) and perimeter changes (+19.7% impact), namely coming from Sapient. Forex and acquisitions supported the operating margin (+20bp) as did personnel costs (+20bp), offsetting the rise in other opex (-40bp impact). In line with the global advertising spending anticipations (ZenithOptimedia 2015 forecasts revised from 4.9% in December 2014 to +4.2% in June 2015), management is now expecting Publicis' revenues to rise organically by at least +2.5% versus +3% to +3.5% previously, in line with the agencies market. A market outperformance is still anticipated in 2016e.
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*.
Response to Government consultation
02 Dec 16
In the 2015 Autumn Statement, the Government stated the intention to remove the right to general damages for minor soft tissue injury claims with compensation for injuries such as whiplash now being made in medical care rather than cash. In addition, the Government proposed to raise the small claims limit for personal injury cases from £1,000 to £5,000.
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.
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.
28 Sep 16
Cello has an overlooked and potentially significantly undervalued asset that is now out of development phase. Cello Pulsar is a social media analytics tool that has significant points of difference to the competition. In the right hands, social media data can inform, direct and optimise marketing campaigns but to date its usage has been constrained by early-stage science and customer unfamiliarity. Competitors in this area have individually raised nearly half of Cello's market cap, emphasising Pulsar’s potential to add very material value to the share price. We initiate at Buy.