Team Internet Group - Earnings remain resilient

Team Internet’s H1 earnings showed resilience despite continued headwinds in online marketing. Going into the typically seasonally stronger H2, we expect the company’s initiatives in product innovation, vertical integration and international to increasingly influence growth and margin expansion. At 8.2x FY24 earnings, Team Internet continues to trade at a significant discount to peers on our unchanged earnings estimates. We believe this rating remains attractive given the company’s track record,

Morning Note – 30 September 2024

Macro headwinds remaining stubborn

Whilst The Lawyer continues to grow, macro headwinds continue to impact marketing budgets for Xeim’s blue-chip customers. Further disruption comes from the restructuring of these marketing teams, with any training or investment delayed. As a result, we downgrade our FY24 revenue forecast to £34m with £5.1m of EBITDA. Despite the tough operating market, this is still a profitable business (with £9.5m net cash at Sept 24). As a result, the 0.6p dividend is maintained and the investment phase of BI

XLMedia - Interim Results

XLMedia has released interim results in-line with its prior trading update. The Group continues to transition its operations to being right-sized and solely focused on the North American market. H1/24A Adj EBITDA was $0.9m with the year expected to be second half weighted. This is supported by H2 including four months of the NFL season compared to one month in H1, the peak period for betting operator spending. XLM currently has a market cap of c.$35m, a FY24E net cash of $19m (excluding any shar

PANMURE LIBERUM: The Panmure Liberum Leisure Digest: Confidence should rebound and sustain footfall growth

Eagle Eye+ (EYE, House Stock at 465p) - New alliance to increase market penetration

XLMedia - FY23A Results – Transitioning to US-focused Business

XLM has released FY23A annual results for the period ending 31 December 2023, with Adj EBITDA in-line with expectations at $12.1m and Adj PAT ahead of expectations at $5.0m ($3.9m forecast) due to lower-than-expected D&A and tax charges, and higher-than-expected interest income. We have released our FY24E forecasts which show a transitional year as the business moves towards being almost exclusively US-focused. The remaining business trades on an FY24E Adj EV/EBITDA multiple of 2.8x, a significa

Next 15 Group PLC

The Mach49 contract non-renewal is a blow for Next 15, given its scale and level of margin contribution. The early termination brings forward a natural moment of earnings risk that has been clear from the outset. The company has been prudent in guiding to no further contribution despite a good possibility of future work being undertaken. Alongside the Mach49 news, the group has also confirmed that the H2 recovery that previous guidance assumed has not fully materialised. B2B tech spend continue

Next 15 Group PLC

Following the earlier trading update, which confirmed the loss of the large Mach49 contract and a continuation of tough trading conditions for the technology client facing parts of the group portfolio, the H1 results provided an opportunity for the group to report in more detail on its performance and outlook. The net result from our perspective was of reassurance around the strength of the broader portfolio, particularly for those businesses less exposed to technology client spend. We were also

PANMURE LIBERUM: Reach: Digital growth returns

The MISSION Group - Good H122 despite market headwinds

The MISSION Group’s first-half results are as presaged in July’s trading update, with 10% growth in both revenue and operating profit. Exposure to the technology and healthcare industries is a net positive and recovery in live events and property also contributed to progress. The strengthened balance sheet equips the group to continue with infill M&A. FY22e and FY23e market estimates are unchanged, with profits (as usual) weighted to Q4, taking into account a likely less favourable trading backd

PROGRESSIVE: STV Group: Further significant commission wins

Despite a continuing tough market for new programme commissioning, STV has announced several further new wins, ranging from a second series of major drama Criminal Record for Apple TV+ to new competition format Game of Wool for More4. We make no changes to forecasts at this point, but see further underpinning for STV’s ambitious target of £140m of revenues from Studios by 2026. We look forward to a more detailed update with interim results due on 3 September.

Allenby Capital TMT Update - 01.07.24 - PPS.L, MIRI.L, ENET.L, MWE.L, CPX.L, TRAK.L, CLCO.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

Eagle Eye+ (EYE, House Stock at 470p) - Tesco: a new AI reference client!

Morning Note – 22 August 2024