Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on WPP PLC. We currently have 10 research reports from 4 professional analysts.
|09Dec16 09:00||RNS||B-M acquires minority stake in Kenyan affiliate|
|01Dec16 02:40||RNS||Voting rights and Capital 30 November 2016|
|01Dec16 07:00||RNS||Briefing for Investors and Analysts|
|29Nov16 04:00||RNS||WPP acquires Promotion Execution Partners in US|
|29Nov16 10:45||RNS||Executive Performance Share Plan ("EPSP") Awards|
|08Nov16 04:35||RNS||WPP Signs Affiliation Agreement with PPG in Iran|
|01Nov16 02:10||RNS||Voting rights and Capital 31 October 2016|
Frequency of research reports
Research reports on
01 Nov 16
"A flat to marginally positive market is seen for London this morning, with the blue-chip FTSE-100 expected to open up in excess of 15 points. With just a week before election day, politics remained the dominating talking point, with experts declaring that incriminating emails cited by the FBI in their probe into Hillary Clinton's exchanges could be uncovered in the next few days, while she continues to insist there is no case to answer. This kept the markets in a generally nervous mood, with all principal US indices closing fractionally down to cap a disappointing month during which the S&P-500 fell by 1.9% while the NASDAQ lost 2.3%. Asia was in a slightly better mood, with both the Hang Seng and the Shanghai Composite receiving a lift from better than expected official manufacturing PMI data from China, with the index rising to 51.2 for October, up from 50.4 in September, thereby beating expectations for the third straight month. By contrast Japan was in a more sombre mood, having shifted back its target date for achieving a level of 2% inflation from 2017 to 2018 following recent data, although the central bank still left its short-term interest rate target for commercial bank deposits at 0.1%. This left Japan with a fractional loss for the day, while the ASX gave back most of yesterday's gains through weaker commodity plays and financials as the Reserve Bank of Australia left interest rates unchanged at 1.5%. Today both the UK and the US are due to due to release manufacturing PMI figures, while the results season in full swing with a large number of corporates being scheduled to release earning or trading updates this morning, including BP (BP..L), Hastings Group (HSTG.L), MoneySupermarket (MONY.L), Royal Dutch Shell (RDSA.L), Shire (SHP.L), Standard Chartered (STAN.L), Virgin Money (VM..L) and Weir (WEIR.L)." - Barry Gibb, Research Analyst
Continuing to deliver satisfactorily
31 Oct 16
WPP reported Q3 revenue (including the full impact of digital billings, i.e. linked to acquiring digital media space on its own account) up 23.4% to £3,611m, a 3.2% organic improvement (after +4.3% in H1 16 but on a stronger basis of comparison) and after +4.4% from acquisitions and +15.8% from forex (sterling weakness; only c.14% of revenues in the UK). Net sales were up by 2.8% organically to £3,114m (H1 16: +3.8%). For the 9 month period, consolidated revenues rose by 3.9% organically and net sales by 3.4%. Not reporting its full results at this stage, WPP nonetheless specified that the 9 months operating margin was up by 40bp on a reported basis (+30bp at CER) with staff costs being well under control. The target for +30bp at CER for the full-year was reiterated (with an additional 10bp boost likely from forex), despite the traditional caution on Q4. The group still expects like-for-like revenue and net sales growth up by over 3%.
A more than ever credible positive FY16e guidance
25 Aug 16
WPP reported revenue (including the full impact of digital billings, i.e. linked to acquiring digital media space on its own account) up 11.9% to £6.54bn, a 4.3% organic improvement (similar to H1 15’s performance) and after a +3% forex impact (sterling weakness as only 14% generated in the UK) and +4.6% coming from acquisitions. Net sales were up 3.8% organically (were +3.2% over Q1), with a reported figure of +11% after forex (+2.9%) and perimeter impact (+4.3%). The reported net sales margin reached 13.7%, up 40bp on the same period last year (+30bp at CER), increasing the credibility of the +30bp full-year target at CER despite the tougher economic environment. The headline diluted EPS rose by 16.7% to 39.1p while the interim dividend is raised 22.9% to 19.55p (i.e. a pay-out ratio of 50% from 47% in H1 15, ahead of the FY17 target). July’s net sales growth rose by 1.9% like-for-like (or +3.5% for the first seven months), i.e. ahead of budget with the UK being “stronger than the previous quarter” (maybe a post-Brexit vote recovery according to CEO Martin Sorrell who, nonetheless, still considers the country might fall into recession). The FY16e guidance is for revenue growth “well over 3%” (raised from “over 3%”) and net sales growth “over 3%” with a slightly weaker H2 than H1 (high basis of comparison + clients remaining cautious).
25 Aug 16
"Traders are now unlikely to take any large market bets until the Federal Reserve Bank of Kansas City's two-day Monetary Policy Symposium at Jackson Hole, Wyoming has concluded. Top of the bill of course is Chair, Janet Yellen, who is formally scheduled to speak at 09:00hrs local time on Friday, but given the hype that has surrounded this event anything she finally divulges is likely to be considered something of an anti-climax as far as investors are concerned. Indeed, most probably she will continue to walk a fine line, offering positive but uncommitted descriptions of the current state of the US economy while keeping options open regarding a rate hike at the central bank's September meeting. That would leave the markets to tread water for a little longer yet. Overnight the US markets closed modestly weaker across all principal indices, giving back more than the previous day's gains, as concerns circulated in the media about possible political actions to tame escalating drug prices following the sharp increase imposed by Mylan Inc. on Epistem, its sever allergies treatment; crude oil also weakened again on further reflection of yesterday's surprisingly big build-up of US stockpiles, which was also seen to pressurise other recently well supported commodity prices. A lack of new stories in Asia left the regions equity markets to simply track the US, with the Shanghai Composite ending the session's the main casualty as the PBOC was seen injecting additional funds to stimulate otherwise lacklustre investor enthusiasm. Other than today's start of the Jackson Hole Symposium, macro releases due includes the CBI Distributive Trades Survey and the CML mortgage lending figures, while UK corporates due to publish earning numbers are Anglo Pacific Group (APF.L), CRH (CRH.L), Henry Boot (BHY.L), Jimmy Choo (CHOO.L), John Laing (JLG.L) and Spire Healthcare (SPI.L). The FTSE-100 is seen opening around 12 points lower in early, relatively low volume, trade." - Barry Gibb, Research Analyst
2016 - a maxi-quadrennial year
19 May 16
A good Q1 performance showed year-on-year net sales growth slightly ahead of budget at 3.2% (constant currency, like-for-like), with the US, UK and Western Continental Europe in the vanguard. 2016 is set to be a strong year for advertising, with the normal even year effect boosted by the forthcoming Rio Olympics, UEFA Euro Football Championship and US presidential election. WPP’s strong forecast earnings growth, 12% CAGR 2015-17e (in a 10-15% target range), provides scope for rating expansion.
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
N+1 Singer - Morning Song 09-12-2016
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.
Zwillenberg moves his first chess piece
09 Dec 16
New CEO Paul Zwillenberg has followed up swiftly on the strategy update of a week ago with his opening move: cutting DMGT’s stake in Euromoney from 67% to 49% via a placing and buyback by Euromoney. Chess players might see this as something of a queen’s gambit, sacrificing something upfront (EPS dilution of c7%, c2% reduction to SOTP, significant reduction in reported FCF) in exchange for increased future financial flexibility (both for DMGT and Euromoney). We see this as a sound move strategically. Even so, we move back from Buy to Hold, reflecting the recent rally in the shares, a valuation no longer obviously cheap relative to peers (just under 15x calendar 17E EPS following this deal), plus lower confidence on long term growth prospects for the portfolio. Near term we see better value in a DMGT “synthetic” (one third each INF/ASCL/ITV) offering similar macro-exposures at a lower multiple (under 13x EPS).
Leveraging brands and data
24 Nov 16
Future is building and widening its revenue streams based on strong global brands and on a scalable delivery platform. Growth of revenues in categories such as eCommerce, events and digital advertising resulted in broadly maintained group FY16 revenues, while the margin has started to build, helped by operating leverage. The Imagine purchase, post year-end, brings further scale and efficiency. The lengthening record of delivery against expectations and the premium projected earnings growth are making the multiple increasingly attractive.