Good to see that markets have a handle on valuing the current batch of internet IPO’s. Having initially more than doubled from its listing price, Linkedin’s subsequent -35% share price retrenchment means that it is now only 47% ahead on its original offer price last month. Pandora meanwhile also seemed be getting off to a good start […]
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The City narrative on the Q1 results seems predictable enough; a positive underlying revenue momentum which is encouraging managements to raise full year trading expectations and return to acquisition led expansion – a big hurrah for the bankers! Equity markets however are proving a tougher nut to convince, given its broader macro focus and as a consequence consensus forecasts for revenues […]
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The narrative the markets will focus on will remain the group’s ability to translate its digital and emerging market investments into premium revenue growth and further margin progress. From this perspective, Publicis’s Q1 revenue performance should be well received. A +6.5% rise in organic revenues pipped Omnicom’s +5.2%, reflecting continued progress in digital (+12.6% to 28.2% of revenues) and […]
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Revenues on track, but FV adjustments flatter margin and EPS beat Delivering Q1 EPS of $0.69 vs a consensus expectation of $0.59 ($0.56-$0.63 ranged vs $0.52 for Q1 FY10) seemed like a fairly convincing beat, although the market had not been expecting the $123.4m of book gain from the remeasurement of the fair value of […]
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Today’s Q1 results from Google provides a prelude to Q1 reporting season for the marketing services groups which kick-off next week (18-22 Apr) with Omnicom which reports on Tues 19th and Publicis on Thurs 21st. The following week IPSOS reports on Tues 27th with WPP and Interpublic on Thurs 28th. With Q4 recovery momentum already reported to have […]
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All very interesting you might say, but isn’t this a ‘media’ blog? Indeed it is, but just as any great sauce needs to be based on a good stock (yes I spent the best part of a decade at a leading French bank), so a meaningful media valuation needs to be rooted in a coherent and […]
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Before I start to drill down into how a market ECC can be used to translate company FCF yields (operating) into growth ratings, I thought a few parting shots at the PE merchants was in order. If you’re seriously trying to explain equity valuations on the basis of reported earnings please consider the following 7 […]
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If something happens a lot, then a few bright sparks may deduce that the probability of it happening again will have gone up. It was on this theme and with reference to the longer term outperformance of equities vs bonds that a number of equity strategists were arguing for a structural decline in the equity […]
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