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Research Tree provides access to ongoing research coverage, media content and regulatory news on AXEL SPRINGER SE. We currently have 5 research reports from 1 professional analysts.
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AXEL SPRINGER SE
AXEL SPRINGER SE
Trends so far globally in line
03 Nov 16
Axel Springer reported flat Q3 16 total revenues of €801.5m (of which 67% is digital, compared with 61.2% a year earlier). On an organic basis, revenues were up by c.3.5% after +5.3% over H1. The 9-month total revenues were also flat at €2,366.5m (of which c.67% digital), mainly affected by the deconsolidation of the activities in Switzerland (following the creation of a JV with Ringier), and up 4.7% organically. Note that the digital activities’ organic growth accelerated to a solid +10.6% over the period compared with +9.9% a year earlier. The Q3 recurring EBITDA was strongly up (+13%) to €146.1m driven by Classified Models, and implying an improved margin of 18.2% versus 16.3% a year earlier. For the 9 months, the recurring profitability improved by 90bp to 17.6% versus 16.7%, with the Classified EBITDA margin more or less flat at 40.5% versus 41%, despite continuing technological and marketing investments (i.e. a reassuring point after the H1 decline from 41.2% to 40.4%). Within Paid Models (45% of total group revenues), which continues to suffer from circulation declines (9 months: -9.5%) but also from advertising drop (-3.2% ytd), digital now accounts for 28.1% of revenues. The Q3 adjusted EPS was more or less flat for the period and up 6.5% ytd. The FY16e guidance is maintained for total revenues more or less in line with last year’s and a rise in EBITDA in the low to mid single-digit percentage range was confirmed. EPS is still forecast in the mid to high single-digit percentage range.
Now investing in data and economic analyses for digital businesses
10 Jun 16
Axel Springer today announced the acquisition of eMarketer Inc., a leading US provider for data and economic analyses for digital businesses (reports, statistics, databases, data and forecasts). eMarketer is a well known company in the fields of digital marketing, sales, and trends, which generates c. 81% of its revenue from subscriptions (more than 1,000 firms are customers). Founded in 1996, it employs >180 people and is based in New York City while also operating a London office.
Acquiring a leading digital business news offerings... at a very high price...
29 Sep 15
Axel Springer has just announced the acquisition of c.88% of Business Insider Inc., the US business news portal for c.€306m ($343m). Note that Bezos Expeditions (the personal investment company of Jeff Bezos) will keep c.3% of the portal.
An impressive digital transformation with still little operational leverage…
09 Sep 15
Disappointing H1 15 results for Axel Springer, with a flat organic revenues performance (+0.7%; reported figure up €140.5m to €1,577.3m, i.e. +9.8%) as well as a flat EBITDA of €266.7m, implying a 160bp decrease in the operating margin over the period to 16.9% vs 18.5% in H1 14, as digital activities (now 75% of consolidated EBITDA) continue to require important investments and acquisitions. Adjusted net income was slightly down (to €136.5m from €138.2m) and adjusted EPS reached €1.09 vs €1.12. The FY15e guidance was reiterated for total revenues up within a low to mid single-digit percentage range, EBITDA in the high single-digit percentage range and adjusted EPS in the low double-digit percentage range due to lower minorities. The group also made some comments about its new cooperation plan with ProSieben as well as on the upcoming finalisation of its deal with General Atlantic (Classified activities).
Indeed more and more digital
23 Jun 15
While revenues proved to be satisfactory, rising by 2.5% organically, supported by the digital media activities (+11.2% organically; pro-forma revenues now equivalent to c.60% of group revenues from 55.9% a year earlier), Axel Springer's Q1 15 EBITDA margin dropped by 180bp to 15.3%, namely impacted by the 330bp decline (to 40.1% versus 43.4%) in Classified Ad Models, its most profitable business. This highlights a business model based on external growth, with lower margin from acquired companies weighing on the average... The guidance for 2015 was nonetheless reiterated for total revenues up within a low to mid single-digit percentage range, EBITDA in the high single-digit percentage range and adjusted EPS in the low double-digit percentage range due to lower minorities.
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*.
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)
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.