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  • 14 Jun 18
The film and TV battle game

Yesterday, a US federal judge cleared AT&T’s $85bn takeover of Time Warner. It has been taken as a green light for Comcast to submit a new $65bn cash bid for 21st Century Fox’s entertainment businesses, 19% higher than the value of Disney’s offer. As a reminder, in parallel, the UK regulator has recently approved Fox’s proposed takeover of Sky if it sells Sky News. The regulator had already cleared Comcast’s $30.7bn offer for the 61% of Sky that Murdoch does not own (the Murdoch Family Trust being the largest shareholder of Fox). A decision which would have allowed Fox to increase its bid for the 61% of Sky it doesn’t already own to fend off the rival offer from… Comcast (a £12.50 per Sky share cash proposal 16% above the ongoing Fox bid at £10.75/share). But if Comcast bought Fox…

Companies: SKY
  • 14 Jun 18
The film and TV battle game

Yesterday, a US federal judge cleared AT&T’s $85bn takeover of Time Warner. It has been taken as a green light for Comcast to submit a new $65bn cash bid for 21st Century Fox’s entertainment businesses, 19% higher than the value of Disney’s offer. As a reminder, in parallel, the UK regulator has recently approved Fox’s proposed takeover of Sky if it sells Sky News. The regulator had already cleared Comcast’s $30.7bn offer for the 61% of Sky that Murdoch does not own (the Murdoch Family Trust being the largest shareholder of Fox). A decision which would have allowed Fox to increase its bid for the 61% of Sky it doesn’t already own to fend off the rival offer from… Comcast (a £12.50 per Sky share cash proposal 16% above the ongoing Fox bid at £10.75/share). But if Comcast bought Fox…

Companies: SKY
  • 28 Feb 18
A bidding war now seems to be on the cards

The US cable operator Comcast announced yesterday that it was making a £12.50 per Sky share cash proposal (plus dividends), i.e. 16% above the ongoing 21st Century Fox bid (£10.75/share) and 13% above the previous share price close. Comcast specified that a 50% + 1 share minimum acceptance would be required to get approval from its shareholders. Such an acquisition would enable the US giant to diversify outside the US while securing its content supply. Note that a cash proposal “does not constitute an offer or impose any obligation on Comcast to make an offer”. Sky made a statement yesterday specifying that no firm offer had been made at this point, advising shareholders to take no action.

Companies: SKY
  • 28 Feb 18
A bidding war now seems to be on the cards

The US cable operator Comcast announced yesterday that it was making a £12.50 per Sky share cash proposal (plus dividends), i.e. 16% above the ongoing 21st Century Fox bid (£10.75/share) and 13% above the previous share price close. Comcast specified that a 50% + 1 share minimum acceptance would be required to get approval from its shareholders. Such an acquisition would enable the US giant to diversify outside the US while securing its content supply. Note that a cash proposal “does not constitute an offer or impose any obligation on Comcast to make an offer”. Sky made a statement yesterday specifying that no firm offer had been made at this point, advising shareholders to take no action.

Companies: SKY
  • 29 Jan 18
Well done, again

A strong start to the year with solid operating momentum and improved profitability. The strategy is deployed smartly and successfully with a focus on content, innovation and service. We expect some minor upgrades to our forecasts. But beyond these sound results, the main share price driver is, and remains, around the ongoing merger with the parent company.

Companies: SKY
  • 29 Jan 18
Well done, again

A strong start to the year with solid operating momentum and improved profitability. The strategy is deployed smartly and successfully with a focus on content, innovation and service. We expect some minor upgrades to our forecasts. But beyond these sound results, the main share price driver is, and remains, around the ongoing merger with the parent company.

Companies: SKY
  • 13 Dec 17
Sky moving under Disney’s umbrella?

Disney is near to closing a deal to acquire 21st Century Fox’s assets (said to have been previously approached by Comcast and Verizon) for $60bn on an enterprise value basis, including the latter’s 39% stake in Sky. It appears that the Murdoch family will get a 5% stake in the US media group in the end.

Companies: SKY
  • 13 Dec 17
Sky moving under Disney’s umbrella?

Disney is near to closing a deal to acquire 21st Century Fox’s assets (said to have been previously approached by Comcast and Verizon) for $60bn on an enterprise value basis, including the latter’s 39% stake in Sky. It appears that the Murdoch family will get a 5% stake in the US media group in the end.

Companies: SKY
  • 12 Oct 17
A solid start to the year

Sky reported a satisfactory Q1 to end-September trading statement with new customers up 160,000 (+90,000 in Germany, +70,000 in the UK, flat in Italy) or +51% (Q1 last year was >100,000). Consolidated revenues reached £3,296m, i.e. up 4.5% (+5% on a comparable basis). Note that there were positive trends across the whole business, with UK & Ireland revenues (67% total group) up 4% despite pressures on consumer spending and on the domestic TV advertising market (estimated by management to have declined by around 2% over the period), Germany & Austria (15% total group) up 8% and Italy (18% total group) up 2%. A positive point to be noted is the 11.1% increase in EBITDA to £582m thanks to good cost control, implying a 110bp improvement for the EBITDA margin to 17.7%. This was despite the investments made in new businesses (£24m, of which c.80% for Sky Mobile and c.20% for Sky Espana). The EBITDA growth in what the group calls “Established Business” was even higher at +15%.

Companies: SKY
  • 12 Oct 17
A solid start to the year

Sky reported a satisfactory Q1 to end-September trading statement with new customers up 160,000 (+90,000 in Germany, +70,000 in the UK, flat in Italy) or +51% (Q1 last year was >100,000). Consolidated revenues reached £3,296m, i.e. up 4.5% (+5% on a comparable basis). Note that there were positive trends across the whole business, with UK & Ireland revenues (67% total group) up 4% despite pressures on consumer spending and on the domestic TV advertising market (estimated by management to have declined by around 2% over the period), Germany & Austria (15% total group) up 8% and Italy (18% total group) up 2%. A positive point to be noted is the 11.1% increase in EBITDA to £582m thanks to good cost control, implying a 110bp improvement for the EBITDA margin to 17.7%. This was despite the investments made in new businesses (£24m, of which c.80% for Sky Mobile and c.20% for Sky Espana). The EBITDA growth in what the group calls “Established Business” was even higher at +15%.

Companies: SKY
  • 08 Aug 17
Tightly managing its operating costs

Having gained 77,000 new customers in Q4, putting the full-year to June 2017 at +686,000 (of which +280,000 in the UK, +365,000 in Germany and +41,000 in Italy), Sky reported a satisfactory Q4 operating profit up 8% to £455m. For the FY to June 2017, consolidated revenues improved by 10% on a comparable basis to £12,916m (+£599m of which +£382m coming from subscriptions’ rise) and +5% at CER. As expected, and reflecting the Premier League costs (additional £629m), the OP declined by £97m to £1,468m, finally a well-controlled negative impact, helped by reduced opex. Also note that the group’s net debt remained flat at £6.2bn despite the £379m of adverse forex movements over the period.

Companies: SKY
  • 08 Aug 17
Tightly managing its operating costs

Having gained 77,000 new customers in Q4, putting the full-year to June 2017 at +686,000 (of which +280,000 in the UK, +365,000 in Germany and +41,000 in Italy), Sky reported a satisfactory Q4 operating profit up 8% to £455m. For the FY to June 2017, consolidated revenues improved by 10% on a comparable basis to £12,916m (+£599m of which +£382m coming from subscriptions’ rise) and +5% at CER. As expected, and reflecting the Premier League costs (additional £629m), the OP declined by £97m to £1,468m, finally a well-controlled negative impact, helped by reduced opex. Also note that the group’s net debt remained flat at £6.2bn despite the £379m of adverse forex movements over the period.

Companies: SKY
  • 30 Jun 17
Merger delay likely but main threat removed

The UK Government yesterday made public its comments about the 21st Century Fox bid for Sky, saying that the OFCOM regulator found that it raises public interest concerns linked to the Murdoch family interest in the UK media. Positively, it noted that there are no broadcasting concerns. A more in-depth review is likely to be required and the merger to go through a full investigation. The final decision is awaited on July 14 as the companies were asked to propose some solutions to avoid the review. In case of submission to the Competition and Market Authority (CMA), the regulator would have 6 months to review before reporting back to the UK government.

Companies: SKY
  • 30 Jun 17
Merger delay likely but main threat removed

The UK Government yesterday made public its comments about the 21st Century Fox bid for Sky, saying that the OFCOM regulator found that it raises public interest concerns linked to the Murdoch family interest in the UK media. Positively, it noted that there are no broadcasting concerns. A more in-depth review is likely to be required and the merger to go through a full investigation. The final decision is awaited on July 14 as the companies were asked to propose some solutions to avoid the review. In case of submission to the Competition and Market Authority (CMA), the regulator would have 6 months to review before reporting back to the UK government.

Companies: SKY
  • 26 Jan 17
Under the Premier League drag but otherwise satisfactory

Sky produced satisfactory H1 to end-December 2016 results, with revenues up 12% to £6.04bn and +6% at constant currencies. The adjusted operating profit reached £679m, down £65m from last year (or -9%) but this was exclusively due to an additional £314m of Premier League costs and therefore was very solid (total costs up 8% and +2% before Premier League; opex down 1%). The group also benefited from £200m synergy savings achieved six months early. The adjusted EPS is down 5% to 28.3p. This is on the whole in line with our full-year to end-June 17e EPS which is expected to be down by 6%. As a reminder, as part of the terms of the proposed takeover by 21st Century Fox, Sky will not pay any dividends in 2017.

Companies: SKY
  • 26 Jan 17
Under the Premier League drag but otherwise satisfactory

Sky produced satisfactory H1 to end-December 2016 results, with revenues up 12% to £6.04bn and +6% at constant currencies. The adjusted operating profit reached £679m, down £65m from last year (or -9%) but this was exclusively due to an additional £314m of Premier League costs and therefore was very solid (total costs up 8% and +2% before Premier League; opex down 1%). The group also benefited from £200m synergy savings achieved six months early. The adjusted EPS is down 5% to 28.3p. This is on the whole in line with our full-year to end-June 17e EPS which is expected to be down by 6%. As a reminder, as part of the terms of the proposed takeover by 21st Century Fox, Sky will not pay any dividends in 2017.

Companies: SKY
  • 06 Jan 17
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Companies: SKYNUMCLIGTILSG4MACRL
  • 06 Jan 17
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Companies: SKYNUMCLIGTILSG4MACRL
  • 06 Jan 17
Starting in a new addressable market

Sky officially launched yesterday its new mobile service in the UK, in a market currently valued at £15.2bn. Considering that current “mobile contracts are inflexible and confusing” and that most people “are buying more data than they need to avoid extra charges”, the group is offering “flexibility and value”. Note that customers’ unused data “will be theirs to keep” (to use whenever they need for up to three years), with the possibility, month to month, of creating their own appropriate plan. Sky TV customers (who are the main target of this new service) will also get free UK calls and texts as well as synching with their Sky+ box.

Companies: SKY
  • 06 Jan 17
Starting in a new addressable market

Sky officially launched yesterday its new mobile service in the UK, in a market currently valued at £15.2bn. Considering that current “mobile contracts are inflexible and confusing” and that most people “are buying more data than they need to avoid extra charges”, the group is offering “flexibility and value”. Note that customers’ unused data “will be theirs to keep” (to use whenever they need for up to three years), with the possibility, month to month, of creating their own appropriate plan. Sky TV customers (who are the main target of this new service) will also get free UK calls and texts as well as synching with their Sky+ box.

Companies: SKY
  • 09 Dec 16
Going back to its mother...

Sky has just officially confirmed it has received a £10.75 per share cash offer from its major shareholder 21st Century Fox. The group formed an independent committee of the board to consider this proposal, which is in agreement to recommend it…

Companies: SKY
  • 09 Dec 16
Going back to its mother...

Sky has just officially confirmed it has received a £10.75 per share cash offer from its major shareholder 21st Century Fox. The group formed an independent committee of the board to consider this proposal, which is in agreement to recommend it…

Companies: SKY
  • 13 Oct 16
A satisfactory start to the year

Sky produced a satisfactory Q1 16 to end-September, adding 106,000 new customers (UK: +35,000, Germany: +49,000, Italy: +22,000), despite the impact of the Olympics in Rio and the UEFA Euro 2016 which were available on FTA channels. Consolidated revenues were slightly above expectations at £3,148m, up 13% on a reported basis (+£355m), partly helped by sterling’s weakness (adding £147m over the period), +7% at CER and +5% on a comparable basis. Coming as a positive point is the further 2% decline in operating costs, as the group is pursuing its cost efficiency efforts in order to counterbalance rising sports expenses within an highly competitive context.

Companies: SKY
  • 13 Oct 16
A satisfactory start to the year

Sky produced a satisfactory Q1 16 to end-September, adding 106,000 new customers (UK: +35,000, Germany: +49,000, Italy: +22,000), despite the impact of the Olympics in Rio and the UEFA Euro 2016 which were available on FTA channels. Consolidated revenues were slightly above expectations at £3,148m, up 13% on a reported basis (+£355m), partly helped by sterling’s weakness (adding £147m over the period), +7% at CER and +5% on a comparable basis. Coming as a positive point is the further 2% decline in operating costs, as the group is pursuing its cost efficiency efforts in order to counterbalance rising sports expenses within an highly competitive context.

Companies: SKY
  • 12 Sep 16
Another strong year and near-term focus on costs

Sky produced a satisfactory full-year to end-June 2016 results, with consolidated revenues up 6.6% to £11,965m (+7% in UK, +12% in Germany, +2% in Italy). The adjusted operating profit reached £1,558m up 12%, i.e. a 60bp margin improvement at CER to 13% (UK: +80bp to 18%, Germany: -50bp to 2.4%, Italy: +110bp to 0.3%) and the adjusted EPS rose by 13% to 63.1p. These results were supported by strong 808,000 new customer additions over the year (+445,000 in the UK, +346,000 in Germany and 17,000 in Italy) to 21.8 million (+160,000 in Q4) and 3.3m new paid-for subscription products. Retail subscription revenues rose by 5% (+6.2% in the UK, +9.8% in Germany) but the churn rate deterioration in the UK (to 11.20% compared with 10.70% a year earlier) came as a slight disappointment as we were expecting a stable level of 10.70%. Looking at FY to end-June 17e, management is guiding for revenues rising at a similar annual run rate (+5% to +7%; supported in the UK by a c.5% price increase and up-sell mix and by new services and progressively eliminating customers with discounts) while intending to offset the c.£600m one-off rise in cost of the new three-year UK Premier League contract by cost control. It also specified it is intending to raise the dividend at a similar rate next year (was +2% to 33.5p in FY June 2016 after the final of 20.95p) despite the UK business being impacted by this one-time step in cost. Note that, regarding the Brexit impact, CEO Jeremy Darroch highlighted that “people stay at home and watch TV when finances are tight”...So far so good as long as one can indeed continue to provide strong content at reasonable costs and selling prices, something we consider Sky masters.

Companies: SKY
  • 12 Sep 16
Another strong year and near-term focus on costs

Sky produced a satisfactory full-year to end-June 2016 results, with consolidated revenues up 6.6% to £11,965m (+7% in UK, +12% in Germany, +2% in Italy). The adjusted operating profit reached £1,558m up 12%, i.e. a 60bp margin improvement at CER to 13% (UK: +80bp to 18%, Germany: -50bp to 2.4%, Italy: +110bp to 0.3%) and the adjusted EPS rose by 13% to 63.1p. These results were supported by strong 808,000 new customer additions over the year (+445,000 in the UK, +346,000 in Germany and 17,000 in Italy) to 21.8 million (+160,000 in Q4) and 3.3m new paid-for subscription products. Retail subscription revenues rose by 5% (+6.2% in the UK, +9.8% in Germany) but the churn rate deterioration in the UK (to 11.20% compared with 10.70% a year earlier) came as a slight disappointment as we were expecting a stable level of 10.70%. Looking at FY to end-June 17e, management is guiding for revenues rising at a similar annual run rate (+5% to +7%; supported in the UK by a c.5% price increase and up-sell mix and by new services and progressively eliminating customers with discounts) while intending to offset the c.£600m one-off rise in cost of the new three-year UK Premier League contract by cost control. It also specified it is intending to raise the dividend at a similar rate next year (was +2% to 33.5p in FY June 2016 after the final of 20.95p) despite the UK business being impacted by this one-time step in cost. Note that, regarding the Brexit impact, CEO Jeremy Darroch highlighted that “people stay at home and watch TV when finances are tight”...So far so good as long as one can indeed continue to provide strong content at reasonable costs and selling prices, something we consider Sky masters.

Companies: SKY
  • 21 Apr 16
Still, a continuing satisfactory growth

Sky has just released good Q3 to end-March results, adding 177,000 new customers (70,000 in the UK, 73,000 in Germany, 34,000 in Italy) which takes its total customer base to 21.7m. Over the 9 months period, consolidated revenues increased by 4.8% to £8,715m (subscription revenues up 4%) and OP by 12% to £1,143m, i.e. a 13.1% margin versus 12.3% for the same period last year. Deteriorating churn rates, namely in the UK, came as a slight disappointment but the group managed to maintain its ARPU there (£47), a positive amid always rising competition…

Companies: SKY
  • 21 Apr 16
Still, a continuing satisfactory growth

Sky has just released good Q3 to end-March results, adding 177,000 new customers (70,000 in the UK, 73,000 in Germany, 34,000 in Italy) which takes its total customer base to 21.7m. Over the 9 months period, consolidated revenues increased by 4.8% to £8,715m (subscription revenues up 4%) and OP by 12% to £1,143m, i.e. a 13.1% margin versus 12.3% for the same period last year. Deteriorating churn rates, namely in the UK, came as a slight disappointment but the group managed to maintain its ARPU there (£47), a positive amid always rising competition…

Companies: SKY
  • 29 Jan 16
Very well done so far!

BSkyB produced very satisfactory H1 to end-December results, with revenues up 5% to £5.7bn, adjusted operating profit up 12% to £747m (i.e. a 13.1% margin approximately in line with our c.13.2% expectation and compared with 12.3% a year earlier) and adjusted EPS up 10% to 29.9p. The Board has announced a 2% increase in the interim dividend to 12.6p and the appointment of James Murdoch as the new Chairman of the group who will replace the departing Nicholas Ferguson from April.

Companies: SKY
  • 29 Jan 16
Very well done so far!

BSkyB produced very satisfactory H1 to end-December results, with revenues up 5% to £5.7bn, adjusted operating profit up 12% to £747m (i.e. a 13.1% margin approximately in line with our c.13.2% expectation and compared with 12.3% a year earlier) and adjusted EPS up 10% to 29.9p. The Board has announced a 2% increase in the interim dividend to 12.6p and the appointment of James Murdoch as the new Chairman of the group who will replace the departing Nicholas Ferguson from April.

Companies: SKY

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on SKY. We currently have 33 research reports from 4 professional analysts.

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£32,903m
Market Cap
£18,763m
Latest PE (hist)
22.80
Div Yield
0.85

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01Nov18 09:51 RNS Total Voting Rights
31Oct18 10:11 RNS Annual Financial Report
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18Oct18 12:12 RNS TR-1: notification of major interest in shares
12Oct18 15:02 RNS Director/PDMR Shareholding
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  • 20 Jan 20
Rapid growth confirmed

Kape have announced a full year trading update confirming the expected strong growth in top-line and adjusted EBITDA. Kape’s sales growth accelerated sequentially to 19% h/h in H2 (H1: 7%), supported by continued growth in the Group’s core Digital Privacy segment. Full year revenues of c.$66m (N1S: $68.9m) were achieved after some reallocation of marketing investment towards Digital Privacy (sales recognised over time), which has in turn led to an improvement in revenue visibility for future periods. Adjusted EBITDA is now expected to be ahead of expectations: ($14.5m; N1S: $13.9m) as a result of a higher than expected proportion of Digital Privacy sales. Management guidance targets revenue growth of 85% and adjusted EBITDA growth of >150% in FY’20E (inc acquisition of PIA), in-line with expectations, and we make no changes to forecasts at this time. FY’20E OpFCF yield is forecast at 5%, ahead of comparative high-growth peers.

Companies: Kape Technologies
  • 20 Jan 20
Kape Technologies

Strong trading update; Buy

Companies: Kape Technologies
  • 20 Jan 20
A doubly-strong finish to 2019

Kape has today published a trading update for its 2019 year. The group, in addition to the November acquisition of PIA, has revealed a strong close to the year, with Adjusted EBITDA slightly ahead of expectations. We make no changes to our revenue and EBITDA forecastsfor 2020, which remain within the range of guidance provided, but take significant comfort from the fact that Kape has now delivered both strong organic outperformance and a transformational acquisition in recent months.

Companies: Kape Technologies
  • 22 Jan 20
The Mission Marketing Group - Last minute surge

MISSION’s full year trading update confirms that the group performed in line with market expectations, with the last weeks of the year particularly busy. Working capital is therefore likely to have increased net debt to more than the £2.1m previously anticipated by the market, but still within the 0.5x net debt/EBITDA target. Management continues to expect the group to be net cash positive by end FY20e, despite higher investment in both technology and geographic expansion. Unchanged market forecasts for FY20 and FY21 show good progress at revenue and margin levels. The valuation remains at a sizable discount to peers.

Companies: The Mission Group
  • 23 Jan 20
Strong H1 margin and update on revenue guidance

The H1 trading update from Gfinity, the leading international esports business, demonstrates further progress in the refocusing on a Strategic Client Management model where Gfinity acts as the trusted independent partner to games publishers, sports rights holders, brands and media companies in the development and delivery of their esports strategies. Gfinity is reallocating resources towards its community, consulting and content creation streams to supplement delivery of end-to-end esports programmes. As part of this, the Company has taken the decision not to progress a material opportunity for a new contract with a customer where it has recently completed a major project. This results in a significant reduction in FY20 revenue forecasts but improved mix and ongoing cost control means that adj. EBITDA loss actually reduces. We have also reduced our revenue growth assumption for FY21 and now expect that Gfinity will move into EBITDA profit in H2 FY21. This change has implications on our cash forecasts however we note the company is in discussions with several potential strategic investorsthat would create new opportunities for the Group.

Companies: Gfinity
  • 19 Dec 19
Cenkos: XLMedia Plc -- Transformational investment

XLMedia's trading update points to a broadly inline performance for 2019E and an investment programme for 2020E that will transform the Group. The investment in Group resources will enhance publishing assets and streamline the management structure. The group will remain solidly cash generative through this transformation period.

Companies: XLMedia
  • 21 Oct 19
Quarterly Research Outlook Autumn 2019

Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.

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  • 20 Jan 20
Allenby Capital TMT Update - 20.01.20 (BOOM.L)

Audioboom Group plc* (BOOM.L, 242.5p/£34.0m)

Companies: Audioboom Group
  • 06 Jan 20
News Corp strategic partnership and Unruly acquisition

Tremor has announced that it is acquiring Unruly from News Corp through the issuance of 8.5m new Tremor ordinary shares to News Corp (6.9% of Tremor’s prior shares or £14.5m), and Tremor has entered into a global partnership with News Corp for 3 years of exclusive access to outstream digital video adverts for over 50 News Corp publications, with Tremor committing to £30m of ad spend over 3 years. This indicates News Corp has considerable confidence in Tremor, and as News Corp now has a substantial interest in the Tremor investment case, it is anticipated that Rebekah Brooks (CEO of News UK) will join Tremor’s board. Tremor has also issued a short trading update, with FY19 EBITDA in line with market expectations (H2 c$39m), net cash in line except for a $5m advance, and FY19 revenue lower than expected due to Tremor focusing on its profitable, core activities and removing intercompany revenue. We consequently adjust our forecasts with a breakdown on p6. Tremor subsequently trades at a substantial discount to its peers on 12m fwd multiples of 2.4x EV/EBITDA and 5x adj P/E, and we look forward to Tremor issuing a more detailed trading update in late January.

Companies: Tremor International
  • 25 Sep 19
The Mission Marketing Group - Creative business partner for brands

MISSION’s new CEO James Clifton, appointed in April, is setting his stamp on the group, recasting it as a business partner for brands. The name change from The Mission Marketing Group reflects this new approach. He is accelerating internal collaboration and a multi-agency approach, as well as simplifying the internal structure. H1 trading and recent new business wins are indicating early validation. Operating margins should improve as more support services are provided centrally, with market estimates indicating 14.0% for FY21e, from 12.6% in FY18. The valuation remains at a sizable discount to peers.

Companies: The Mission Group
  • 17 Dec 19
Trading Update

Huntsworth has released a trading update for the 11m to November which indicates Group trading has been satisfactory, with results within market expectations. The Marketing division has returned to LFL revenue growth, although a good new business performance was partially offset by project deferrals and product closures which curtailed growth to +3%. Medical delivered robust LFL growth of +8% for FY19, Immersive performed well against a tough comparative and Communications accelerated to +2% for the year. The group guides to PF19 leverage of 1.6x, consistent with its target of 'around 1.5x'. The group expects good growth in 2020 with acquisitions successfully integrated and performing to expectations. We lower our upper end FY19 PBT/EPS forecasts to £38.6m/8.0p (was £40.8m/8.6p) and from this lower base and including FX headwinds now arrive at £40.5m/8.0p (was £47.6m/9.6p) for 2020.

Companies: Huntsworth
  • 16 Jan 20
4imprint Group - Self-promotion pays

4imprint’s pre-close update indicates trading in the later weeks of the full year continued strong, with FY19 results set to be at the higher end of the market forecast range. Revenue (+17%) was slightly above our estimate, which we raised by $10m at the November trading update. The $41.0m net cash at the year end was also a little ahead of our forecast of $39.5m. We have initiated FY21 forecasts, which show the group exceeding management’s $1bn revenue target a year earlier than originally anticipated. The large scale of the addressable market leaves plenty of opportunity for growth, with potential for further share price appreciation.

Companies: 4Imprint Group
  • 21 Jan 20
Trading Update

Entertainment AI has released a Trading Update for the period to December that confirms audience and revenue growth is in line with expectations. The group finished the year with stronger than DCe cash of $9.5m. For FY19, GT Channel audience leapt +45% to 12.3bn driving net revenues up +59% to $10.3m in line with DCe. During Q4, Tagasauris completed a successful pilot with Sumitomo Corporation, EAI's global strategic partner, to deliver an enriched viewing experience for the Rugby World Cup. Underpinned by this success, Entertainment AI will continue to deploy the funds from its recent IPO to build a suite of technology products that connect its two businesses and thereby drive eCommerce and other revenues, monetising new mobile consumer behaviour. The group will demonstrate a product release for GT Channel creators at the Growth & Innovation Forum on 11th February. We believe Entertainment AI is making robust progress in building a platform to deliver, and then monetise, a platform for short-form video content.

Companies: Entertainment AI
  • 24 Sep 19
Quality of revenue improves during a strong half

This has been a good half, seeing growth in registrations, group revenue and renewals, assisted by a full six months of ICM. The increased sales at higher margin has meant H1 adj. EBITDA jumped over 300%; moreover, a key point is approached as renewal revenues now cover almost all costs: partner payments, cost of sales, and opex. Operationally, progress has also been made in resolving the legacy contract issues. MMX remains comfortably on track for our FY 2019 expectations, which remain unchanged. The company remains wary of giving FY 2020 guidance at this stage. However, looking ahead, this is a much more stable operation; a much better quality to the revenue stream, a controlled cost base, legacy issues addressed; and exciting and innovative growth opportunities.

Companies: Minds + Machines Group
  • 19 Nov 19
Substantial deal both transformational and significantly earnings enhancing

In a deal which will have a profound effect on the prospects for the group, Kape has announced the proposed acquisition of LTMI Holdings, the holding company for virtual private network provider Private Internet Access (PIA). PIA is a Denver-based security software business, the addition of which will transform the size of Kape by doubling group revenues (including a stronger recurring revenue base) and increasing adjusted EBITDA by around 2.5 times in FY 2020E. Reflecting that, our earnings estimates increase by around 90% for FY 2020E while our new FY 2021E estimates build strongly on that much larger base. Total consideration is c. US$95.5 million with an enterprise value of c. US$127.6 million. The deal is expected to complete within 45 days and is anticipated to be immediately earnings enhancing. The transaction will create a significant player in the digital privacy market and will enable Kape to expand its footprint in North America with a broader product offering.

Companies: Kape Technologies