STV’s interim results detail another very strong financial and operational performance, point to encouraging momentum going forward and reinforce our very positive view of its prospects and underlying strengths. We regard the group’s stock as materially undervalued with our fair value estimate of 516p suggesting 51% upside potential from current levels.
Companies: STV Group 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
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STV’s H1 update flagged strong trading, an impressive viewing performance and clear operational momentum, and included an upbeat outlook assessment – a view strongly echoed in ITV’s recent interim results. We raised our FY21F adj. EPS estimate by 3% in response and are bullish on the Group’s growth prospects and underlying attractions, which we detail in this report. We estimate a fair value of 516p – suggesting 41% upside potential. House Stock.
What a difference a year makes - 12 months ago, the focus, quite understandably, was on the course of the pandemic and the lifting of the Lockdown (1) measures. For investors, it was the sustainability of the rally in markets seen since March 2020. Today, while we are still thinking about the lifting of lockdown measures, we are also concerned about two “old favourites” from previous decades. Inflation and the parlous state of public finances. The BoE has said that although CPI inflation rose to
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Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m. Offer
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STV will return an extra 25p/share over the next 18 months to shareholders, underlining Management's confidence in the Group.
A strong performance from the higher-margin regional and digital sales has enabled STV to drive strong growth in operating profit. The interim and full year dividend have been increased by 33% and 20% respectively and new KPI targets for 2018 introduced to support STV’s ongoing strategy to diversify the group’s broadcast franchise.
STV is on track for a good first half with growth across the board, particularly in digital and production. On a 9.5x FY16e P/E with dividend
support, the share offers good value. Furthermore, the valuation of the defined pension deficits will conclude in this quarter, which should clarify
STV’s cash commitments for the next three years and may pave the way for special dividends further out.
Overall PBT was in line with our forecasts, with stronger performance from STV Player offsetting weaker performance in production. FY16 should be more balanced and we forecast revenue growth across all key divisions. The outcome of regulatory reviews in the coming months and several company-specific initiatives may provide support, if not a boost, to our forecasts and the share price.
We expect a return to revenue growth in FY16. Investment in Production should start to deliver and in Consumer STV is finding an increasing number of ways to leverage its strong brand. The target of 10% CAGR in EPS to FY17 looks achievable and forecasts may benefit from changes in regulation. On a c 40% P/E discount to peers, the shares look good value.
STV continues to strengthen its position as Scotland’s leading commercial TV broadcaster. Digital is growing strongly and City TV is successfully attracting new advertisers to television, although start-up losses left H115 profits lower, as expected. H215 has started well and our full year PBT estimates are unchanged. Net debt continues to reduce and management reaffirmed both its intention to pay a 10p full year dividend (the interim was lifted by 50%) and its target of 10% CAGR EPS growth (201
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Reach has provided a strong update highlighting H2 revenues up +1% y/y to date (SCM H2e: - 3%), with Digital revenues growing +17% y/y. Unique user registrations continue to rise (>8m; July’21: 6.7m) providing a highly attractive source of first-party data for digital advertisers, which combined with further traction supporting advertisers’ digital campaigns using Reach’s ‘PLUS’ products, paves the way for sustainable ongoing improvement in yields. Ongoing recovery in Print advertising yields re
Companies: Reach plc
CentralNic’s growth is accelerating rapidly and benefiting from the trend towards tightening privacy policies. In addition, margins are expected to widen after current investments plateau and the company expects further earnings accretive acquisitions.
Companies: CentralNic Group Plc
It has been a year of recovery for the Walt Disney Company, as it made great strides in reopening its theme parks and cruise businesses while also taking meaningful and innovative steps to position itself for continued long-term growth. On the direct-to-consumer side, the company has seen excellent success in its portfolio streaming services, Disney+, Hulu, and ESPN+ continued to perform extraordinarily well with 118.1 million, 43.8 million, and 17.1 million subscribers, correspondingly, for a s
Companies: Walt Disney Co (DIS:NYSE)Walt Disney Company (DIS:NYS)
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CentralNic provides domain name services and online marketing, focused on consolidating a highly fragmented global market. It offers a broad range of internet services, including reseller services, to corporates and SMEs (Online Presence), as well as monetisation services (Online Marketing) to domain investors. The group strategy is to benefit from structural market growth, building its two segments and diversifying the group’s revenues through cross-selling and upselling services. CentralNic ha
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: Tremor International Ltd.
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
Companies: S4 Capital plc
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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
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
Eagle Eye, a leading SaaS technology company that creates digital connections enabling
personalised, real-time marketing through coupons, loyalty, apps, subscriptions and gift services,
has provided a trading update ahead of it’s Annual General Meeting, being held today at 1:00 p.m.
Overall, Q1 FY22F has delivered strong revenue growth, +35% versus the same period last year, and
an improved run rate from the +27% stated for Q4 FY21A. Performance has been driven by
significant customer wins
Companies: Eagle Eye Solutions Group PLC