S4 Capital has reported continued very strong growth in Q3, with LFL Gross Profit up +42% taking 9m growth to +47%. Reported Gross Profit nearly doubled to £144.4m, comfortably ahead of DCe £133.8m. The two year LFL Gross Profit stack was up +65%. The group continues to invest heavily in human capital to support this level of growth, particularly in whopper client structures, emerging services areas and technology platforms. The group has secured its sixth whopper in HP and has identified 19 fur
Companies: S4 Capital plc
S4 Capital has reported hugely impressive H1 results that were ahead of our expectations. Gross Profit almost doubled to £236.7m, comfortably ahead of DCe and company budgets. LFL growth in the 'super strong' half was +49%, with an acceleration from +33% in Q1 to an astonishing +66% in Q2 against the CV19 trough comparative. This stellar growth rate has continued into the current quarter, with LFL growth of >50% in July and S4 Capital has raised its FY LFL guidance from 35% to 40%, the third inc
S4 Capital has announced that it has secured a seven year €375m term loan and five year £100m revolving credit facility, providing total debt capacity of £420m. This replaces the existing facilities which total £109m and therefore provide a further £311m of headroom. We show a sensitivity analysis for FY22 which shows that the group could deploy £1bn on acquisitions at 10x EBITDA with consideration split half equity to vendors and half cash/debt. On a pro forma basis, this would add approaching
S4 Capital has released a very upbeat AGM statement in which it raises its guidance for LFL Gross Profit growth from 30% to 35%. The group reports that it has experienced a further acceleration in April, which has increased reported Gross Profit growth from 71% in Q1 to 84% for 4m which we calculate means that April more than doubled. S4 Capital states that the marked acceleration in April has persisted into May, while the pipeline for June continues to be robust. At the Q1 update, the group rai
S4 Capital has released a very strong Q1 update with LFL Gross Profit up +33%, ahead of our +29% forecast, with reported growth of +71% to £104m. We believe growth accelerated during the quarter as the BMW/Mini and Mondelez whoppers came on stream and as comparatives eased. The group now guides to LFL growth of +30% (was +25%) for FY21 and we raise our forecast from +29% to +32%. S4 Capital indicates it will deliver a strong EBITDA margin in 2021, which will again be stronger in H2. The group ha
S4 Capital reported robust FY20 results, which were ahead of our expectations due to a very strong end to the year, with Q4 LFL growth in gross profit of +27%. The group has started the year strongly and we raise our LFL growth forecast from +27% to +29%, underpinned by the whopper account wins of BMW/Mini and Mondelez coming fully on stream. S4 Capital is targeting 20 whoppers and, in addition to the five it will have this year, it has identified 10 near-term whoppertunities, with half from tec
S4 Capital has reported FY20 results that are ahead of our forecasts, with Normalised PBT of £52.9m vs DCe £50.0m. The group finished the year strongly to deliver FY20 LFL growth of +19% with Q4 up +27%. A strong cashflow performance led to the group ending the year with net cash of £52m. The new year has started strongly with January well ahead of budget and the group is budgeting FY LFL gross profit growth of +25%. We raise our FY21 LFL growth forecast from +27% to +29%, which we still view as
S4 Capital has announced mergers with Decoded Advertising in Content and Metric Theory in Data & Digital Media, along with a Trading Update that confirms continued strong trading. Decoded Advertising is a US creative, technology and media agency and Metric Theory is a US performance marketing agency across search, social media and commerce media. The two businesses generated Gross Profit of $70m/£55m in 2020, growing 50%. The acquisition prices were not disclosed, though we expect they will be a
It has been a year the likes of which we have never seen before, and hope never to see again. The description of the impact of the CV19 pandemic as K-shaped certainly feels accurate, with some sectors being well placed to benefit from the creative disruption that has engulfed the world, accelerating structural changes, while others through no fault of their own have been severely impacted. This has been the case for the Dowgate portfolio of corporate clients, with our quoted clients falling into
Companies: COG FRAN GRC OTAQ TPX SFOR SEEN WATR
Mondelez International has announced that it has appointed MediaMonks to manage global technology infrastructure, global websites and content production for North America, Latin America and AMEA. We believe this account win by S4 Capital further vindicates the unitary structure and integrated offer of the group as Mondelez initially worked with MightyHive before broadening the scope of this relationship to encompass MediaMonks. S4 Capital describes the account as a Whopper, indicating that it wi
S4 Capital has reported very robust Q3 results that were well ahead of our raised expectations. In our preview note we believed the group would at least match the +18% reported in July. S4 Capital considerably outperformed this, with Q3 LFL Gross Profit growth of +23%, taking YTD growth to +16%. Growth was strongest in Content (Q3 +28%) and the Americas (+27%). The group secured the BMW/Mini whopper account in Q3 and indicates it has another one in sight this quarter. We raise our FY LFL Gross P
S4 Capital will report Q3 results on 9 th November. We forecast 9m Gross Profit of £196.4m with Q3 up +72% to £72.4m aided by the contribution from Firewood. At the interims we had forecast +12% Q3 LFL growth, but now believe this is too low and expect an outcome (at least) at the +18% reported in July. This compares with the marcoms holding companies that reported Q3 declines of between -4% and -12%. The digital majors have reported robust Q3 results with revenues growing +14% to $46bn for Alph
S4 Capital had an extraordinary week with strong interims and an impressive CMD accompanied by a further merger and topped off with winning its third Whopper. Interims were ahead of our expectations and we were particularly encouraged by LFL Gross Profit growth of +18% in July. The group announced the merger with Dare.Win, an award-winning digital creative agency which extends the geographical presence of MediaMonks to France. BMW and MINI consolidated its Pan-European account into a team led by
S4 Capital has reported interim results that are ahead of our expectations and indicates an acceleration in the pace of recovery in Q3. LFL Gross Profit rose +12.2% in H1, with Q1 +18.8% and Q2 +6.5%. Encouragingly, after the trough of +3% in April, recovery accelerated to +5% in May, +11% in June and July was an impressive +18% ahead. PBT and EPS were both slightly better than our forecasts, while the group delivered a particularly impressive cash performance leaving it with net cash in June ev
S4 Capital will announce interims on Wednesday, 9th September. The group released a trading update in July indicating 5m LFL growth in gross profit of +12% (Jan +33%, Feb +21%, Mar +6%, Apr +3% and May +5%) and we forecast a return to double-digit growth of +10% in June to give +6% for Q2 and +12% for H1. By contrast, the holdcos have reported an average decline of -16% in Q2 (Interpublic -10%, Omnicom -23%, Dentsu -17% and WPP -15%). S4 Capital has strong momentum and we retain our FY20 forecas
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Tremor has reported Q3 21 organic net revenue growth of +54% to $76.7m (+1% ahead of consensus at $75.6m), and adjusted EBITDA of $42.3m at a margin on net revenue of 55% (+14% ahead of consensus at $37.1m). Tremor’s Programmatic division and its CTV revenue are driving its strong organic growth with +56% and +115% yoy respectively, and it is continuing to achieve quarterly performance that is ahead of many of its US-listed peers’ Q3 organic revenue growth of +22-54%, with adjusted EBITDA margin
Companies: Tremor International Ltd.
Interims from Mirada, the leading provider of integrated software for digital TV operators and broadcasters, saw a return to revenue growth (+10% to $6.0m) as the deployment of Android TV set top boxes (STBs) at izzi Telecom accelerated. Coupled with good cost control, adj. EBITDA increased 96% to $1.1m. izzi remains Mirada’s core customer but it is progressing opportunities in Latin America and Southeast Asia, has embraced a new reseller sales model, and recently increased its North American an
Companies: Mirada PLC
Yesterday’s very encouraging trading statement (which led us to upgrade our FY21F adj. EPS estimate by 7%) and upbeat capital markets session reinforced our conviction that STV offers one of the most compelling investment cases within our Media coverage universe. In this report we summarise our key take-aways from these touch points and reiterate our 570p fair value estimate.
Companies: STV Group plc
Payment of the Q1 bond coupon cancelled.
The COVID-19 crisis will massively weigh on the group’s businesses.
Cost cutting and capex postponement on the cards.
Visibility is getting close to zero.
We believe the group can’t avoid a capital increase despite the low share price.
Companies: Solocal Group
Reach’s interims were strongly ahead of SCM estimates for H1 sales and EBITDA, by 5% and 4% respectively. Digital sales (23%/revs) grew 43% y/y to £69m supported by 150% y/y growth in unique registrations to 6.7m, whilst underlying Print decline decelerated to just -5% y/y (H2’20: -18%; H1’20: 20%) as weaker comparatives were lapped. The Group has posted positive sales growth for the first time in a number of years, rising +3% y/y (like-for-like) to £302.3m, and delivering AOP of £68.9m (Margins
Companies: Reach plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
Companies: AMYT BAG BVC BRSD CLG CML FBD GDWN INV MACF MNZS MIO NRR NSF NBI MATD PREM QFI RUA SCS STVG SUR SNX UPGS VAST VLS
Companies: Kape Technologies Plc
Centaur Media’s strong operational performance has continued into H2, with both revenue and EBITDA margin now guided to exceed current market expectations. Outperformance is being driven primarily by the Group’s XEIM (Marketing) segment, where Econsultancy subscriptions ran ahead of management forecasts driven by new business wins, whilst Mini MBA continues to see high double-digit growth (H1’21: 84% y/y). The Lawyer segment has also performed strongly, and is now guided to deliver 7% y/y growth
Companies: Centaur Media plc
Tremor has announced the complementary $14.7m acquisition of Spearad, which is a global Connected TV (CTV) ad server and media management platform. It enables broadcasters and TV content companies to deliver seamless TV-like ad experiences in CTV and OTT environments, through a platform that can centrally manage and optimise both direct-sold and programmatic CTV campaigns. The Spearad platform will be integrated into Unruly’s Supply Side Platform (SSP), and enable Tremor to offer new and existin
Companies: Time Out Group PLC
ITV had a strong performance in 9m21. It included strong total advertising revenue growth in Q3 21 (+32% vs -7% in Q3 20). The outlook is positive for Q4 21 with advertising revenue growth estimated at +11-13%. ITV Studios revenue growth (+32% in 9m21 vs +26% in H1 21) was driven by the delivery of programmes in the UK and international markets and higher revenue from streaming platforms. Q4 21 should benefit from the strong pipeline of programmes.
Companies: ITV PLC