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While Q1 revenues were broadly in line with expectations, up by 3.2% yoy, the operating profit was disappointing at only €15.3m (vs €67.9m in 2021).
This does not augur a good 2022 as Spanish advertising revenues already look to have contracted by at least 10% in April.
We remain at Buy on the stock which has already lost 45% since the beginning of the year. We will however revise downward our 2022 forecasts.
Companies: MFE-MediaForEurope NV Class B
Mediaset has announced the creation of a new holding company, MFE (Media For Europe), which will totally control its Spanish and Italian assets. This operation is clearly aimed at creating a pan European media and entertainment group to compete with Netflix, HBO or Disney.
The merger of Mediaset and Mediaset Espana should generate €100-110m of synergies by 2023. Be aware, however, that all the synergies of the world can’t prevent the decline in the European TV advertising market.
2018 revenues were down by 4% yoy at €3.4bn, quite in line with our estimates at €3.43bn. The Q4 was, as expected, weak in Italy with the expected process of digital transformation of the Pay TV business (as a reminder the group signed a content deal with Sky in April 2018 to stop losing money in that activity but with less revenues as a counterpart).
EBIT was, however, very poor at €75m. This is due to the realignment of the accounting of Pay TV rights (for c.€200m) and, adjusted for this item
Mediaset has released a poor Q3 with revenues down by 6.6% yoy, while the EBITDA was down by 25.4% yoy. The Q3 net result was also negative at €-15.8m. Note Ei Towers is for the first time consolidated by the equity method. The reason for this separation is the exit of the transmission towers company from the group’s area of consolidation at the beginning of Q4 18 following the successful public offering made by Ei Towers. Note the sale by Mediaset of its controlling interest – the company now o
Mediaset reported Q2 17 revenues slightly above consensus at €956.4m (-0.2%). This implies the H1 17 revenues dropped by 1.3% to €1,845.7m (H1 16: €1,870.6m), impacted by declining Italian pay-TV, Italian other revenues and Mediaset Espana revenues (-2.5% to €508.5m for the latter).
Consolidated H1 17 EBIT positively improved by €116.7m to €212.8m (i.e. an operating margin moving from 5.2% to 11.5%), namely highlighting a recovery from the last year’s loss-making situation in Italy (H1 17 EBI
Vivendi announced yesterday evening that it owns 3.01% of Mediaset and is intending to continue to acquire shares “depending on market conditions, until possibly becoming Mediaset’s second largest industrial shareholder, which, to begin with, could represent between 10% and 20% of the Mediaset share capital”.
The Italian group, which was apparently not aware of this “attack”, said it will continue the ongoing legal battle with Vivendi and block any Vivendi takeover by all possible means.
Once upon a time (say about 6 months ago), Mediaset and Vivendi concluded a splendid strategic alliance: the French group was to acquire 100% of Mediaset Premium, while each entity would be taking a 3.5% stake in the other on the occasion. The ambition was to build a pan-European OTT platform and to create a southern European content and VOD powerhouse…
The announced wedding has since moved to the divorce legal battlefield, maybe paving the way for a ménage à trois.
Mediaset H1 16 revenues rose by €150m to €1,870.6m, driven by improving Italian advertising trends (+8.5% or +8.5% to €1,349.7m) and a continuing satisfactory Spanish performance (+9% to €521.6m). Conversely, the group’s EBIT dropped by 29% to €97.3m (the operating margin moving from 8% to 5.2%), namely highlighting a loss-making situation in Italy (-€52.8m versus €26.5m a year earlier, while Spain improved from €111m to €150.1m) as pay-TV entity Mediaset Premium, is no longer reported as a disc
Following a strategic deal (please refer to our 11 April 2016 Latest), Mediaset’s Italian pay-TV operations (88.9% stake in Mediaset Premium) were due to be sold to Vivendi in exchange for a 3.5% stake in the French group (deal initially expected to be completed by end-September 2016).
On 25 July 2016, Vivendi officially made an alternative proposal, confirming the exchange of 3.5% of Vivendi’s share capital with 3.5% of the share capital of Mediaset but proposing to buy only 20% of Mediaset Pr
Last Friday evening, Mediaset and Vivendi signed a strategic alliance, each group taking a 3.5% stake in the other (Mediaset transferring existing treasury shares to Vivendi and receiving in exchange existing or newly-issued Vivendi shares). Simultaneously, Vivendi will receive the 89% stake still owned by Mediaset in its pay-TV operation, Mediaset Premium, while buying back the remaining 11% owned by Telefonica.
There will be a three-year lock-up period with Vivendi not authorised to buy share
Although Mediaset outperformed the Italian TV advertising market over H1 15 (-0.7% versus -3%), its total revenues for the period were down 0.2% to €1,721.1m as the Italian businesses remained in the red (-1.1%), offsetting the positive Spanish trend (+2.2%). The group EBIT margin slightly improved from 6.3% to 8% thanks to the Spanish part (23.2% versus 17.1%) and Ei Towers (29% compared with 28.4%), while the integrated Italian activities remained loss making (-€7.7m over the period versus -€3
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Strong management progress on Reach’s Customer Value Strategy continues, although underlying progress has been obscured by elements beyond management’s control. Sales were broadly stable (-2% y/y to £297.4m; SCMe: £299.3m), as Digital revenues continued to grow (+5% y/y) despite a severe deterioration in wider market OMP yields (down up to 40% at peak). Inflationary headwinds in Print have also persisted, with aggregate opex up +7% y/y to £241.7m (SCMe: £237.3m) - AOP consequently fell 32% y/y t
Companies: Reach plc
Singer Capital Markets
In a challenging environment, Tremor has reported net revenue of $70.8m, a record Q2 22 adjusted EBITDA of $39.1m at an industry-leading margin of 55%, and net cash of $361m including $45m of buyback. The current macro conditions, and Tremor’s focus on scaling higher-margin self-serve and PMP revenue, have led to Q2 22 net revenue c8% light of consensus of $76.8m. Adjusted EBITDA is only c2% light of consensus of $39.8m, as management has focused on effectively controlling the cost base while in
Companies: Tremor International Ltd.
Revenues in H1/22E are substantially ahead of our expectations. Growth in XLMedia's sports betting revenues has more than offset weakness elsewhere in the Group. With sports betting now such a high proportion of total activities and margins moving upwards, this should begin to ameliorate any lingering concerns about Casino being a potential drag on earnings.
Companies: XLMedia Plc
FOUR has posted extremely strong H1 results today, a powerful performance by any standards. Key is (1) significant demand increases, (2) pricing leadership, but (3), most important, a stunning lift in the revenue per marketing dollar. This last is the result of this innovative company reworking its already very successful marketing model, equipped with an intelligent data analytics platform, in a new direction which has generated significantefficiencies in the crucial marketing process, result
Companies: 4imprint Group plc
Companies: SAVE SPE TRMR
Companies: Argo Blockchain Plc (ARB:LON)Tremor International Ltd. (TRMR:LON)
Dish of the day
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What’s cooking in the IPO kitchen?**
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports
Companies: EMR IRON JWNG MRK MJH
Mirriad’s interim results confirm the trading update published in July, which indicated the impact of the withdrawal from China, and we make no further changes to our forecasts. There is good progress in the North American market, with US revenues 72% of the group total in H122. It is success here that will determine future growth and moves toward profitability. We regard the contract signed with Magnite at the end of May as a key milestone towards establishing the group’s in-content proposition
Companies: Mirriad Advertising plc
YouGov’s year-end trading update (to end-July) indicates results in line with management expectations, with underlying growth across all segments and a ‘modest’ step up in operating margin. Our FY22 forecasts are therefore unchanged, as are those for FY23. We now also publish our first thoughts on FY24, showing continuing progress on revenue and margin as the increased productisation drives efficiencies. YouGov’s share price performance year-to-date has been affected by the rotation away from an
Companies: YouGov plc
A year on from the end of lockdown on July 19 2021, celebrations at the UK's economic bounce-back in H2-21 have long lost their fizz. Two intertwined themes have remained salient / gathered pace over the past six months since our mid-year sector review: exchange rates and inflation. As we write today, press speculation is focussing on the possibility of a 0.5% rise in UK interest rates in August, billed as the biggest move in 27 years. Looking further afield, economists are looking to the F
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Adj EBITDA will be around 20% higher than forecast in FY21E. This is a decent 'beat' and we attribute it to a rise in underlying operating margins from the transformation programme and favourable business mix from US sports. Not all the benefits from the transformation programme are yet visible in earnings but they are already compensating for much of the weakness possible in Casino in FY22E.