STV Group+ (STVG, House Stock at 235p) - Recent news extends positive momentum

PROGRESSIVE: STV Group: Supportive contract wins

A first commission for Netflix and a material extension of an existing commission for Warner Bros. Discovery highlight continuing strong momentum in 2024 for STV’s Studios division. As well as underpinning current estimates, they point to a continuing broadening out of the client base and scope of work at STV Studios, as the group continues its long-term migration from a traditional broadcaster to a digital streaming and content provider.

PROGRESSIVE: STV Group: New targets show continuing transformation

Operating profit of £20.1m for FY23 is in line with expectations set in November. Forecasts change only minimally, and a firmer recent tone to Q1 advertising is encouraging. After delivering on FY21-FY23 targets for Digital and Studios, STV has set new targets implying potential OP of c.£25m by end-FY26E from these growth activities alone (excluding Broadcast) – underlining the continuing evolution and growth potential of the company.

STV+ (STVG, House Stock at 194p) - FY23A results, new growth targets and CEO change

STV Group+ (STVG, House Stock at 197p) - New content commisions

Hardman & Co Insight: Streamed content takes over

The Great Correction of 2022 saw the share prices of streamers plunge after market leader Netflix reported a slowdown/fall in subscriber growth. Having formerly been seduced by hectic subscriber growth rates, investors quickly refocused, this time on fundamental metrics such as revenue, margins, profits and cashflow. Since then, streamers have continued to take a steadily greater share of viewing while linear TV continues to decline. But growth in streaming subscribers in the US and UK is now a

PROGRESSIVE: STV Group: Two Cities follow-on validates Studios strategy

STV has today announced an increased investment in Two Cities, a leading drama producer into which the group invested in January 2020 (just prior to the Covid outbreak). Two Cities is performing well, with a strong pipeline of series already approved and a £55m secured revenue base over the coming three years. We see this commitment by STV as further proof of the strong and long-lasting growth in the Studios business as a whole. Relatively low-risk (small) investments have been made in a number

STV Group+ (STVG, House Stock at 189p) - Content production investment

PROGRESSIVE: STV Group: Weak economy, strategy on track

News that economic pressures are impacting on STV’s trading is perhaps not surprising; we reduce estimates in line with updated guidance. The update underlines the value of STV’s ongoing diversification across Digital and Studios, with continued strategic progress in these areas. The group financial position remains sound, valuation remains modest even on lower estimates, and we continue to expect a return to good overall growth, driven by Digital and Studios, once the UK economy stabilises.

STV Group+ (STVG, House Stock at 191p) - Trading update flags tougher conditions

STV Group+ (STVG, House Stock at 181p) - Anomalous share price weakness

STV Group+ (STVG, House Stock at 197p) - Interims underline upside potential

PROGRESSIVE: STV Group: Strategic progress in tough ad markets

STV’s H1 results confirm a picture of continuing uncertainty in the UK economy and advertising markets (albeit Q3 should be positive due to sporting events), driving a reduction of 8%-9% to FY EPS estimates. As market leader though, STV is very well placed to benefit when the ad market recovers, with every 1% of advertising uplift having a material positive impact on EPS. STV also continues to make vigorous progress in its diversification strategy. Growth in both Digital and Studios businesses (

STV Group+ (STVG, House Stock at 194p) - Interim results reflect successful diversification

LIBERUM: M&C Saatchi: Brutal Simplicity of Operations

LIBERUM: The Liberum Leisure Digest: NLW increase - pricing power is key

S4 Capital - Extension of recovery horizon

S4 Capital had a difficult FY23, as flagged, with reduced client confidence and spend, particularly from those clients in the tech sector, and on larger transformation projects. Management is cautious in the short term, with no substantive changes likely in H124, but sees conditions likely to improve in H224 as economic pressures ease. The group’s longer-term prospects should be buoyed by its positioning across data and digital marketing and, in particular, in incorporating AI into hyper-persona

LIBERUM: Agents of change: Evolving for modern demands

Team Internet Group - Growth and returns, acquisition bolsters outlook

Team Internet’s FY23 results exceeded our forecasts and consensus on revenue and EBITDA. Online Marketing was driven by increased consumer engagement, reflecting investment in delivering more targeted ads across a wider array of channels. The group’s latest acquisition, Shinez, strengthens Online Marketing via diversification of publishers and is earnings accretive with scope for further synergies. Online Presence returned to strong revenue growth, driven by demand for exotic domains, pricing op

Nexxen - Q4 results +2-4% ahead of cons, FY24E forecasts +3-4% ahead

Nexxen has announced Q4 net revenue +2% ahead of consensus, Q4 adjusted EBITDA +4% ahead of consensus, and FY24 guidance that leads our FY24E revenue and EBITDA to be +3% and +4% ahead of consensus. Q4 net revenue of $90.5m is +2% ahead of Q4 consensus of $88.5m, with the Programmatic division’s $86.0m of net revenue delivering 95% of group net revenue. After successfully realising $65m of annualised synergies from the Amobee acquisition at Q2 23 results, strong cost control has driven Q4 adjust

LBG Media (LBG LN) - Solid core trading, new APAC operating model to drive efficiency

Pre-close trading update sees FY23E revenue growth of ~7% to £67m with Adj. EBITDA to be at least +8% to £17m. Followers are +20% to 440m, with new blue-chip client wins secured. Challenges in APAC have driven implementation of a new, lower-cost, operating model, leveraging LBG’s core UK business and a new strategic partnership with Australia’s largest online media publisher.

Morning Note – 6 March 2024

Next 15 - FY24 Full Year update

If one focused solely on the share price chart, it would appear Next 15 had experienced a near death experience in 2023 with multiple, and extensive downgrades. The reality has been somewhat different. Next 15 will exit FY24 delivering both top line growth and year on year margin progression.

LIBERUM: M&C Saatchi: Efficiency programme delivering

Team Internet Group (TIG LN) - Record results

Team Internet’s FY23 results confirmed another strong year of trading from its Online Marketing and Online Presence businesses. Both revenue and EBITDA growth remained in double digits, margins on net revenue continued to improve, and cash conversion remained strong. We continue to believe that the Group has substantial long-term growth opportunities including international expansion, new partner development, and vertical integration. In our view, Team Internet’s strong track record, cash genera

Team Internet Group (TIG LN) - Online Marketing bolt-on

Following the record FY23 results announced yesterday, Team Internet announced an accretive bolt-on acquisition for an initial consideration of $42m. The Group is continuing its strategy of making accretive bolt-on acquisitions, aiming to diversify its revenue model and expand its traffic monetisation options and capabilities. The deal is expected to complete in late May 2024, at which point we will incorporate the impact into our forecasts. We continue to believe that Team Internet’s strong tra

Initial Equity Trading Comments - 16 May 2023

Tremor - $65m of cost synergies realised, Q2 net revenue +13% yoy

In a challenging environment, Tremor has announced Q2 net revenue growth of +13% yoy to $80.2m, adjusted EBITDA of $21.0m, and the successful realisation of $65m of annualised cost synergies following the Amobee acquisition in September 2022. Q2 Programmatic net revenue has increased +26% yoy or +22% qoq to $76.3m, with CTV net revenue increasing +17% yoy to $45.9m in H1. Today’s release confirms that the tech integration of Amobee is now largely complete, with the April launch of the cross-plat

The Joy of Techs - Cavendish Technology quarterly sector note

£23.3bn in enterprise value has been returned to AIM technology shareholders over the past six years in the form of 51 public to private takeouts, including 10 in 2023 alone with the takeovers of Smoove* and Tribal announced in early October. With UK valuations appearing cheap and looking more attractive to potential acquirers, we take a moment to reflect on the trends of corporate and private equity bidders targeting AIM-listed technology companies going back to 2017, through the uncertainties