Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EQS GROUP AG. We currently have 7 research reports from 1 professional analysts.
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EQS GROUP AG
EQS GROUP AG
Growth stimulus from regulatory changes
16 Nov 16
EQS Group’s Q3 results are the first to incorporate ARIVA, consolidated from 1 July. The purchase of this 51.1% stake was timely, benefiting from projects related to PRIIPs regulation. Year-to-date organic revenue growth of 8% reflects both growing international operations (non-Germany now 24% of group) and a pick-up in domestic activity related to the Market Abuse Directive. Recurring revenues (cloud-based services and licence income) were 71% of top line, despite the level of project work, highlighting the quality of earnings. Our FY16 forecast is unchanged, while FY17 is adjusted for higher ARIVA revenues but greater levels of investment. The shares remain undervalued.
08 Sep 16
EQS is building its global network, leveraging increasing digitisation of corporate investment relations. The raising of standards, buoyed by ever-growing layers of regulation, make DIY solutions less attractive for many corporate investor relations departments and give EQS a larger pool from which to recruit clients. Continuing investment in the product suite and geographical reach has restrained returns through FY15 and H116, but margins should recover over the medium term. The rating is starting to reflect the progress, but still sits at a notable discount to peers.
Ariva acquisition well timed
20 Jun 16
EQS Group’s increase of its shareholding in Ariva to a controlling stake is well timed ahead of the expected changes to the PRIIPs regulation in January 2017. This regulatory change should drive demand for Ariva’s newly launched PRIIP software, which has the potential to become a significant new product line for the now enlarged group. As the acquisition is earnings accretive, we raise our earnings estimates for both FY16 and FY17, although this is not visible at the EPS level in FY16 as we have taken the opportunity to revise our forecast tax rate for that year.
Pushing the international growth plan
02 Jun 16
Q116 shows a similar pattern to end 2015, with growth in revenues from the group’s international operations more than offsetting the weakness in the domestic German market. Full-year guidance (and our estimates) for FY16 revenue and non-IFRS EBIT are unchanged from the time of the FY15 results in April. The costs involved in entering and developing new markets has had an obvious impact on near-term margins, but gives the group the stepping stone to a global offer, with an early-mover advantage in Asia. The price does not fully reflect the scale of the opportunity.
Investing in expansion
21 Apr 16
EQS Group’s FY15 figures reflect the impact of accelerated expansion to establish the group as a leading global provider of digital IR solutions. December’s Swiss acquisition provides market leadership in that territory, while the January 2016 purchase of Obsidian gives a strong base from which to leverage UK growth. Asia remains the region with the greatest potential to transform the group. The valuation remains at a marked discount to global software and B2B media peers, partly reflecting the earlier stage of corporate development, but not signalling a growing SaaS revenue stream.
Pushing ahead in Asia
03 Dec 15
EQS’s Q315 numbers show that is making good progress in building its Asian business, albeit at a cost to margin in the current year. The strong growth in revenues for both Websites & Platforms (buoyed by Asia) and for Reports & Webcasts more than made up for the weakness in Distribution & Media as the SME bond market ground to a halt. Regulatory Information & News performance continues to be constrained by de- and down-listings in the German market. The group’s valuation should expand as management demonstrates successful delivery on its overseas expansion plans.
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).
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*.
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.