Omnicom Group Inc.: Success in Precision Marketing and Public Relations – Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (04/23)

Omnicom Group delivered an all-around beat as its revenues increased by 1%, while non-GAAP adjusted operating income remained unchanged. Foreign currency translations have a negative impact on both. Net interest expense decreased as interest income exceeded the company's expectations. Omnicom anticipates that interest expense will rise slightly in Q2, owing principally to an increase in the interest rate applied to its pension and post-retirement commitments. The major contributors in the quarte

Omnicom Group Inc: Launch of Transact & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (10/22)

Omnicom had a decent financial performance this quarter with organic growth that was broad-based across its client sectors, regions, disciplines, and agencies. The company delivered an all-around beat and its balance sheet, liquidity, and cash flow remain quite strong and continue to support its primary uses of share repurchases, acquisitions, dividends, and cash. This quarter, Omnicom enhanced and expanded its e-commerce capabilities with the announcement of Transact, the dedicated practice foc

Omnicom Group Inc: Catering To The Gaming Market & Other Developments, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (09/22)

Omnicom’s performance in the second quarter was good as the company delivered an all-around beat. With organic growth of 11.3%, widespread throughout their agencies, disciplines, geographies, and client sectors, the management exceeded their own projections as well. The company kept its attention on improving its current skills throughout the quarter to fulfill the demands of its clients and potential customers. Most significantly, they improved and grew their retail media and e-commerce capabil

Omnicom Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (06/2022)

Omnicom is considered one of the Big Five advertising agencies and has a particularly strong balance sheet. The company gave a strong financial performance in its recent results, with organic growth rising above expectations. The margin performance and revenue growth of the company have been particularly strong. They continued to invest via accretive acquisitions in high-growth areas such as precision marketing and CRM, analytics and data, digital transformation in MarTech, the health sector, pe

Omnicom Inc.: Initiation of Coverage – Business Strategy, Market Positioning & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (06/22)

This is our first report on Omnicom, one of the Big Five advertising agencies. The company gave a strong financial performance in its recent results, with organic growth rising above expectations. The margin performance and revenue growth of the company have been particularly strong. They continued to invest via accretive acquisitions in high-growth areas such as precision marketing and CRM, analytics and data, digital transformation in MarTech, the health sector, performance media, and e-commer

LBG Media (LBG LN) - Strong momentum into FY24

Resilient growth in core markets: Revenue of £67.5m is +7.5% YOY (FY22: £62.8m) and +0.7% vs. Zeus estimate of £67.0m, with growth across Direct and Indirect divisions benefitting from increased activity with new and existing clients.

Next 15 Group - Baked in AI opportunities

Next 15 Group's net revenues grew 2.5% in the year to January, despite difficult markets. Adjusted operating margin rose from 20.2% to 21.0%, helped by head office cost savings. In common with much of the sector, spending by tech clients was soft, down 17% like-for-like. The group did well, though, in growing spend from non-tech clients, up 11%, making for a strong overall performance in a market beset by ongoing macro uncertainty. Next 15 has been building its AI capabilities for some time and

LIBERUM: M&C Saatchi: Brutal Simplicity of Operations

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

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

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

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

LIBERUM: Agents of change: Evolving for modern demands

LIBERUM: Time Out: Expanding the Markets pipeline

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

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

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.

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.

Initial Equity Trading Comments - 16 May 2023