reports
- Fiona Orford-Williams
EQS Group - Emerging from investment phase
Management has reiterated FY19 guidance, despite revenue growth at the interim stage being a little below its own expectations. H219 should provide better revenue and profit growth as new modules will stimulate growth, and the internal investment reduces. EQS continues to trade at a significant discount to its peers, and the current share price is discounting growth well below management’s expectations.
- Fiona Orford-Williams
EQS Group - Emerging from investment phase
Management has reiterated FY19 guidance, despite revenue growth at the interim stage being a little below its own expectations. H219 should provide better revenue and profit growth as new modules will stimulate growth, and the internal investment reduces. Our underlying forecasts are unchanged, but we have downgraded revenue and EBITDA forecasts for FY19 and FY20 to take account of the disposal of ARIVA. EQS continues to trade at a significant discount to its peers, and the current share price i...
- Fiona Orford-Williams
Technicolor - An improving picture for H2
Technicolor’s H1 results were in line with management expectations and we have made only minor adjustments to underlying forecasts (numbers now reflect implementation of IFRS 16). Work on The Lion King contributed to a very busy H1 for Production Services, which also has a good H2 pipeline. Connected Home has market leadership in broadband gateway access and has made good progress with its cost saving plan. We expect working capital to swing back to the group’s advantage in H2 and operating...
- Fiona Orford-Williams
Entertainment One - Mark Gordon’s content
Entertainment One (ETO) has reached a multi-year production agreement with Mark Gordon to develop and produce content. The continuing alignment of his efforts with the group’s objectives is good news and removes any residual uncertainty post last month’s press stories. We have now updated our forecasts for the bond refinancing; the reduction in forecast interest costs results in uplifts to PBT and EPS for FY20e and FY21e of 4–5%. ETO is currently trading at a discount of around 7% to peers...
- Fiona Orford-Williams
4imprint Group - Self-promotion boost to strong organic growth
4imprint’s interims show revenue growth of 16% (all organic) and a further small tick up in underlying operating margin to 4.8% (H118: 4.7%). The brand promotion initiative, launched in H118, is delivering online traffic and conversion better than initial expectations. We have again lifted our FY19 revenue and EPS forecasts, by 4% and 3% respectively. For FY20e the EPS uplift is 5%. Management’s revenue target of $1bn by FY22e looks likely to be achieved ahead of schedule. The group has five...
- Fiona Orford-Williams
Euromoney Institutional Investor - Q3 in line
Euromoney’s Q3 trading update indicated overall trading performance in line with management expectations and we have not changed our FY19 estimates. The recent capital markets day took a deeper dive into the Investment Research and Fastmarkets operations and how management is working on transforming them into ‘3.0’ B2B information service businesses, built into clients’ workflows. Given the group’s earnings resilience, subscription base and attractive cash conversion, the rating dispar...
- Fiona Orford-Williams
Edel - Streaming positivity
Edel’s H119 results to March showed a modest improvement in revenues, which were up 2% on the prior period, and a broadly stable EBITDA and margin. Increased depreciation impacts further down the income statement. Management has been passed down a generation to Jonas Haentjes, post Edel’s transition to a partnership limited by shares (the founding family retains its 64% stake). The shares trade at a substantial discount to global entertainment content and publishing stocks, partly due to the...
- Fiona Orford-Williams
Pantaflix - Growing digital channels
Pantaflix’s content production business continues to do well, although FY18 earnings were impacted by timing issues, with revenues slipping into FY19 and costs already incurred. The content pipeline is strong, including a first series for Netflix. Longer-term growth should come from expanding the Pantaflix platform from transactional video-on-demand (TVoD) to subscription and advertising-supported models (SVoD and AVoD). It should also open up white-label and commercial B2B2C opportunities.
- Fiona Orford-Williams
OnTheMarket - Conversion commenced
Final FY19 results to end January show OnTheMarket (OTM) laying the groundwork and building a meaningful business challenger to the two main incumbent UK property portals. The drive to convert participating agents to paying contracts is now under way, with almost 1,000 branches signed to date, at an average revenue per advertiser (ARPA) of £337. Over half of these signings are for three- to five-years. Most of the balance are on shorter contracts, with the option to extend. It is this programme...
- Fiona Orford-Williams
YouGov - Data: the connecting currency
YouGov continues to develop its data, platform and tools to address significant opportunities to embed in clients’ workflows, particularly within the marketing segment. Its new five-year growth plan to FY23 targets building out its panel, data and client base globally, doubling group revenue and operating margin and achieving a CAGR of over 30% for EPS. Given the investment required to achieve this, we expect progress towards these targets to be weighted to the latter part of the period. Stron...
- Fiona Orford-Williams
The Mission Marketing Group - Capital markets day (CMD): Breadth of va...
The recent CMD allowed themission’s newly-appointed CEO, James Clifton, to outline the direction of travel to best leverage group strengths. It also showcased Krow, bought in April 2018, and businesses being developed within the Fuse incubator, particularly Pathfindr. There was no new financial information. Increasing collaboration across group agencies gives a solid base for more cross- and up-selling to the low-churn, blue-chip client base. The valuation remains at a sizable discount to peer...
- Fiona Orford-Williams
EQS Group - Building recurring income
Q119 revenue growth of 9% was a little less than expected due to the lack of IPOs and corporate announcements, but the good pace of corporate sign-ups leaves full year revenue guidance unchanged. EBITDA guidance is also unchanged, but now includes the uplift arising from the application of IFRS 16. As in previous years, meeting the full year expectations will rely on a strong Q4 performance. EQS’s positioning as a provider of cloud-based IR and compliance services for corporates, with growing...
- Fiona Orford-Williams
Entertainment One - Content creation and ownership
Entertainment One’s full year results showed strong growth in underlying EBITDA, +21%, broadly in line with market and our estimates. The Family & Brands division is benefiting from the higher margins from advertising and streaming video on demand (AVOD and SVOD), with underlying EBITDA up 28%. Film, TV & Music’s performance reflects the completion of the transition in film and the shift in mix toward TV, with an improvement in underlying EBITDA margin from 11.6% to 14.6%. Our revised foreca...
- Fiona Orford-Williams
Euromoney Institutional Investor - Fully fledged FTSE 250
Euromoney’s H119 results show the positive impact of management’s strategy, particularly in Pricing, Data and Management Intelligence (PDMI), where underlying subscription revenues grew 8%. Challenges remain in Asset Management and we have lowered our group revenue and earnings FY19e and FY20e forecasts by 6% and 5% respectively. The DMGT share distribution has ‘normalised’ the register and ERM now trades as a fully independent FTSE 250 company. With the liquidity constraint lifted, the ...
- Fiona Orford-Williams
Mondo TV - Tracking on trading
Mondo TV’s Q119 figures are as flagged, tracking to its December 2018 business plan. Our revenue and earnings numbers are unchanged. YooHoo to the Rescue is now airing globally on Netflix, giving a strong start to management’s ambitions to broaden geographic revenue spread. The group has settled with three of the four Asian customers that withdrew in H218, but remains in dispute with one. It has also disclosed that it is subject to a further tax authority investigation, which it is confident...
- Fiona Orford-Williams
Mondo TV - Child’s play
Mondo TV has started FY19 in much improved financial health, with a more concentrated portfolio centred on properties with good potential globally. YooHoo has been sold to Netflix as an original series and is now airing internationally, generating revenues and also acting as a flagship project. Licensing revenues should pick up in its wake. Robot Trains should also contribute from this year. The highly competitive environment between terrestrial and SVoD carriers provides a strong trading backdr...
- Fiona Orford-Williams
Cliq Digital - Increased marketing to drive revenue growth
CLIQ Digital experienced a weak Q3, given a lower CLIQ factor, which undermined the potential recovery in H2 expected at the interim results. Having retrenched marketing spend and focused on integrating acquisitions, marketing is back on an upward trend and the customer base value has increased from Q318 to Q418, as expected. This has given management the confidence to guide to a better 2019. The shares continue to trade at a substantial discount to peers.
- Fiona Orford-Williams
Entertainment One - Sounds like a good deal
Entertainment One (eOne) has announced the acquisition of Audio Network for £165m (cash-free, debt-free basis) alongside a share placing at 450p to raise c £130m. Audio Network’s business model meshes very neatly with eOne’s, adding both music resource and a substantial recurring revenue base while giving the group’s existing artists and catalogue new revenue-generating opportunities. The purchase price represents 15x LTM reported EBITDA and management indicates the deal would be earning...
- Fiona Orford-Williams
Ebiquity - A guiding hand for advertisers
With the disposal of Ad Intel completed, Ebiquity is now focused on building its business as an independent adviser to global advertisers on measuring and optimising their media spend. The recently strengthened management team aims to improve margins from FY18 levels, but the need to adjust overheads to suit the size of the continuing operations will weigh on current year profitability. The unbundling should, however, set up the group for stronger progress thereafter. The balance sheet is signif...
- Fiona Orford-Williams
EQS Group - Compliant digital solutions
EQS’s FY18 results were broadly as expected, with a strong uplift in the top line. The planned investment, designed to build a global regulatory tech platform business, affected profit as flagged. FY20e should be the year when the benefits start to flow more strongly as the group builds share (and SaaS revenues) in the increasingly digital governance, risk and compliance segment. With additional functionality being added to the cloud-based platform and growing recurring revenues (80% of total)...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.