WPP to acquire a 49% stake in Heureka Group in Poland

June 6, 2013 — Fusion DigiNet

wppWPP‘s wholly-owned operating network VML, the digital marketing agency, is to acquire a 49% stake in Heureka Group, a Polish digital agency.

Heureka Group is a full-service interactive advertising agency specializing in digital advertising and social media campaigns. The Group consists of two main creative agencies, Heureka and Pride & Glory, and a proprietary social analytics tool called Brand Fibres.

Heureka Group was founded in 2008 by Michal Adamkiewicz-Wolniak, Joanna Adamkiewicz-Wolniak, Dariusz Andrian, Piotr Friedberg and Dawid Szczepaniak, Clients include Orange, Danone Group, Philips, Nestle, Microsoft, BRE Bank and PZU. Heureka employs 150 people in offices in Warsaw and Krakow.

Heureka Group’s unaudited revenues for the year ended 31 December 2012 were approximately Euro 6.8 million, with gross assets at the same date of approximately Euro 2.4 million. Under the terms of the acquisition, WPP has the option to acquire majority ownership at a future date. Following the transaction, Heureka Group will rebrand as VML.

UK, London & Poland, Warsaw & Krakow

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Reed Elsevier sells RBI France

June 5, 2013 — Fusion DigiNet

Reed Elsevier

Reed Elsevier has sold Reed Business Information France to funds belonging to  Edmond de Rothschild Investment Partners (via the Winch Capital 2 fund), BNP Paribas Développement and several managers of the company. The funds bought a 75 percent stake of RBI France, while the remaining 25 percent was purchased by managers Jean-Pierre Seguret and Alexandre Sidommo. The value of the deal was not disclosed, but is being reported that RBI France was sold for around £40 million.

Reed Business Information France provides professional information and services. Sales in 2012 amounted to EUR 62.4m and the rbigroup has 476 employees in France, Spain and Tunisia. Its main activities include a business intelligence platform which manages tenders (DoubleTrade), some of Reed Elevier’s last consumer magazines including CosmétiqueMag and Coiffure de Paris, guides and soft cover books (Prat Editions, ESF éditeur), an occupational training company (Comundi) and a lead generation company (emedia).

The deal also includes the transfer of the Reed Elsevier group’s Spanish tender management companies Manivest and Construdatos to RBI France.

RBI France is the latest disposal by Reed Elsevier as it moves away from cyclical markets  and focuses on electronic data services and research businesses.

Alexandre Sidommo, head of the Business Intelligence division DoubleTrade has been appointed chairman of Reed Business Information France. The Supervisory Board will be chaired by Jean-Pierre Seguret, former chairman of the DDB France group.

The executive team comprises Stéphane Barus, Finance and Administration director, Gianni Cavalcaselle who becomes head of the Business Intelligence division (DoubleTrade France and Spain), Thierry Lescure, head of emedia, Reed Contents, IT systems and Internet Strategy, Rémi Ramondou, head of the Publishing division, Aurélie Sornat, head of Human Resources and Anne Thomas, head of the Press division.

Pierre-Yves Poirier, Partner of Edmond de Rothschild Investment Partners said, “We are very proud to assist entrepreneurs looking to boost business growth. We now share the same objective, namely helping RBI France to seize growth opportunities on its markets.”

France, Paris

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Mecom Group sells Danish free sheets to Sjællandske Medier

May 28, 2013 — Fusion DigiNet

sn_logoSjællandske Medier has acquired three local free weekly titles (Freesheets) from Berlingske Media, the Danish subsidiary of  Mecom Group for a cash price of DKK 37.5 million (€5.0 million), payable in full at completion.

The Freesheets comprise three weekly publications and two media houses, which together contributed €0.9 million mecomto Mecom’s profit before tax in 2012, excluding central overhead allocations. The Sale will be a transfer of the trade and assets of these operations, and will result in the deconsolidation of approximately €2.6 million of assets from Mecom Group’s balance sheet.

Berlingske Media has also agreed to acquire the outstanding 25 per cent minority interest in a printing company subsidiary of Mecom, for DKK 6.5 million (€0.9 million).

The sale is expected to complete on 1st June 2013.

Denmark, Copenhagen

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DMGT Half Year Preliminary Results

May 23, 2013 — Fusion DigiNet

DMGT have announced their half Yearly Financial Report for the six months ended 31 March 2013. They report a good underlying performance, with the full Year outlook unchanged.

Financial Highlights

                  Half Year   Half Year    Reported   Underlying  Half Year  Half Year
                    2013         2012      Change~     Change~      2013       2012
                             (restated)+                                    (restated)+
Revenue             £915m       £974m        -6%         +2%        £866m      £866m
Operating profit    £146m       £133m        +10%        +7%        £97m       £68m
Profit before       £137m       £105m        +30%                   £97m       £37m
tax
Earnings per        25.8p       19.6p        +32%                   28.2p      15.8p
share
Dividend per                                                        5.9p       5.6p
share
  • DMGT underlying revenue up 2%; underlying operating profit up 7%
  • Adjusted profit before tax of £137m, up 30%
  • Good performance from B2B; underlying revenue up 6% and underlying profit up 5%
  • Underlying revenue decline of 2% at dmg media; improved profit margin driven by cost efficiencies, resulting in underlying profit up 7%
  • Active portfolio management; bolt-on acquisitions and disposal of non-core assets
  • Net debt up £111m to £724m; net debt:EBITDA ratio of 1.85
  • Share buy back programme progressing well
  • Dividend increased by 5%
  • Outlook for the full year unchanged

Martin Morgan, Chief Executive, said:

“We have delivered a good underlying performance in the first half reflecting the strength of our B2B companies and the resilience of our national consumer titles. As expected, reported operating profit increased despite a decline in reported revenue resulting from recent disposals.

Our international B2B companies have increased their underlying revenues and profits* by 6% and 5% respectively. Our UK consumer business, dmg media, continued to experience challenging conditions and underlying revenues were slightly down, although the increase in digital revenues more than offset the decline in print advertising revenues and the business delivered a 7% underlying increase in operating profit*.

We have continued to actively manage our portfolio of businesses and have made several acquisitions and disposals during the period and into the second half, to improve the overall quality and growth prospects of the Group.

Relative to last year, the first half of the year benefited from the timing of biennial events and the absence of a bond redemption premium. Conversely we expect the comparatives in the second half of the year to be adversely impacted by the timing of biennial events and the Olympics, which were one-off benefits for us in the second half of the last financial year. Overall, the outlook for the full year remains unchanged.”

For further information click here.

UK, London

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Future plc – interim results for the half-year ended 31 March 2013

May 22, 2013 — Fusion DigiNet

Future plc, the  specialist media group and  digital publisher,has announced  unaudited interim results for the half-year ended 31 March 2013.

Financial Highlights

Future results 2013 v2

Click on the table for a larger image.

Summary

  • Group revenues down 1%, EBITDAE down 23%, impacted by cyclical decline in Games market
  • Group digital revenues up 33% year-on-year and now represent 25% of Group revenues
  • US operations on track to return to EBITDAE profitability in FY13
  • New credit facility for four years to February 2017
  • Sale of UK Rock titles in April for £10.2m strengthens the balance sheet to support continued investment in the transition to a predominantly digital business

Digital highlights

  • Unique users up 46% year-on-year to 51.4 million a month
  • Page views up 38% year-on-year to 299 million a month
  • Digital advertising now represents 57% of total advertising, up from 47% a year ago
  • Over five million digital editions sold across all platforms
  • Over 300,000 subscribers to digital editions, up over 75% since March 2012
  • FutureFolio signed up to power 80 digital magazines for third parties

Mark Wood, Chief Executive, said, “We experienced some difficult trading conditions in the first half, above all in the Games market, which has been in a trough ahead of new console releases from Microsoft and Sony. However, the first half figures mask tremendous progress towards a predominantly digital business, reflected in a 33% growth in digital revenues. “Our refocusing of the US business is on track to meet our commitment to return the US to EBITDAE profitability this year.

“Despite continued challenging conditions, and the impact of the Games cycle, we are seeing increased momentum on commercial revenues, contributions from new initiatives and bottom line improvements from cost efficiencies. These all point to a strong performance in the second half of the year, much as we saw in FY12, and we believe we are on track to achieve results broadly in line with our expectations.”

UK, London

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Bloomsbury Publishing – unaudited Preliminary Results for the year ended 28 February 2013

May 22, 2013 — Fusion DigiNet

Bloomsbury

Bloomsbury has reported unaudited Preliminary Results for the year ended 28 February 2013. Profit before tax has increased by 16% to £9.8m for the year, with e-book sales growing by 61% to £9.1m over the period.

Turnover is slightly up at 1% to £98.5m, compared to £97.4m for the previous year. Continuing profit before tax and highlighted items was up 3% year-on-year, to £12.5m.

Financial highlights

  • Continuing* profit before tax and highlighted** items up 3% to £12.5 million (2012: £12.1 million)
  • Continuing* profit before tax up 16% to £9.8 million (2012: £8.5 million)
  • Continuing* turnover up 1% to £98.5 million (2012: £97.4 million)
  • Total dividend increased by 5.8% to 5.50 pence per share (2012: 5.20 pence per share)
  • Net cash increased to £14.6 million (2012: £12.6 million)

Click here for full details of the announcement.

Nigel Newton, Chief Executive, said, “This is an excellent performance. Bloomsbury’s core attributes of entrepreneurship, innovation, publicity flair and tight control of costs have led to the delivery of One Global Bloomsbury, and the future performance we have now set the stage for as we enjoy the synergies and sales advantages of having delivered a unified worldwide publishing group. In our strategy for growth we are targeting 50% of profit to be digital within five years, with Bloomsbury being the number one applied visual arts and independent humanities and social science publisher in Europe. Over that time we aim to be the number one publisher of choice in cookery, sport and natural history, with an Information division which has a global base delivering increasing revenues from digital knowledge hubs.

We start the year with a very strong programme led by today’s publication of And the Mountains Echoed by bestselling author Khaled Hosseini”

UK, London

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ITE Group – results for the 6 months to March 2013

May 22, 2013 — Fusion DigiNet

ITETrade exhibitions and conferences company ITE Group has announced interim results for the 6 months to March 2013.

Highlights

ITE 6monthstoMar13

Click on the table for a larger image 

  • Like-for-like revenue growth of 10%+ in H1
  • Biennial and event timing impacts H1 profits by -£3.6m
  • Continued strong cash generation: net cash as at 31st March of £21.7m
  • Three recent acquisitions (ABEC in India, Trade-Link and ECMI in Malaysia – see related articles below) in Asia
  • Good forward visibility: £174m of revenue booked for the full year – (£156m this time last year)

Click here for full details of the announcement

Russell Taylor, CEO of ITE Group plc, commented:

“ITE has delivered a good performance over the first half of the year, delivering solid organic growth in a period which was negatively impacted by biennial and event timing differences. Our three recent acquisitions of ABEC in India, Trade-link and ECMI in Malaysia represents progress in achieving the Group’s strategic aims to expand the Group’s territorial operations in markets with further potential for growth.

The Group has a strong balance sheet and its main markets are trading well. As at 17 May 2013 the Group has booked revenues for the current financial year of £174 million (2012: £156 million), which includes sales from newly acquired businesses as well as organic growth. On a like-for-like basis revenues booked for the full year are 8% ahead of this time last year. The Group is in a strong financial position with continued good trading conditions in our markets the Board has confidence in the full year outcome”.

UK, London

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Inception Media Group acquires Strategic Film Partners

May 17, 2013 — Fusion DigiNet

inception mediaInception Media Group, LLC, a diversified media company specialising in the production, acquisition and distribution of entertainment content, announced it has acquired Strategic Film Partners through its newly formed subsidiary, Inception Film Partners, LLC.

Strategic Film Partners, co-founded in 2004 by Alex Barder, is a global film sales company involved in motion picture financing, production and distribution. Strategic Film Partners attends all major film markets and festivals, representing films for sale to a worldwide distribution marketplace including theatrical, home entertainment, digital, television and emerging media outlets.

Barder, a partner in Inception Film Partners, will assume the role of president of the new company and will spearhead and manage all aspects of its day-to-day operations including business development, strategic planning, acquisitions, film financing and sales.

“The acquisition of Strategic Film Partners further diversifies our company’s efforts and creates new revenue streams that will help drive growth,” said David Borshell, co-founder of Inception Media Group, LLC. “Alex brings with him years of diverse industry experience and the passion and leadership necessary to not only build a bigger and more robust film sales company but also to expand all aspects of our consolidated companies.”

USA, Los Angeles, CA & France, Cannes

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St Ives plc acquires Branded3 Search

May 17, 2013 — Fusion DigiNet

St Ives plcst ives has acquired Branded3 Search Ltd, a search engine optimisation and digital marketing agency.

Established in 2003, Branded3 employs approximately 50 staff, with offices in central London and Leeds. It has a strong B2C and B2B client base across a range of vertical sectors that includes entertainment, finance, travel and other sectors.

In the financial year ended 31 January 2013, Branded3 generated adjusted EBITDA of £1.7 million on revenue of £4.1million; gross branded3assets were £3.0million.

St Ives is paying £10.7million, £8.6 million in cash and approximately 1.4 million of newly issued St Ives shares. Further consideration of up to £14.3 million may be payable (to be
satisfied approximately 75% in cash and 25% in shares) dependent on incremental financial performance for the years ending 31 January 2014, 2015 and 2016.

Branded3 will operate as a subsidiary of St Ives and will continue to be managed from its current locations by its existing management team, which includes Vin Chinnaraja and Patrick Altoft, the vendors and co-founders of the business.

Patrick Martell, Chief Executive of St Ives, said, “With the acquisition of Branded3 we are adding significant depth to our digital offering and further enhancing the range of marketing services we can provide for our existing and prospective clients. Our combination of insight led innovation and trusted execution across digital and physical media creates
a unique integrated offering in the market, which this acquisition complements well. I am delighted to welcome the Branded3 team to the Group and look forward
to supporting their growth plans.”

UK, London

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Chime Communications acquires agencies in Shanghai and London

May 17, 2013 — Fusion DigiNet

chimeChime Communications, the  communications and sports marketing group, has acquired People Marketing UK Limited, a sports marketing and communications agency based in Shanghai and WARL Group Limited, a London based specialist ‘shopper marketing’ agency.

People Marketing

Chime has acquired 100% of the share capital of PMUK (which includes its wholly-owned subsidiary People Marketing Sport and Entertainment Hong Kong Limited) from its founder Ms Irene Cheung.

Prior to the acquisition by Chime, Ms Irene Cheung transferred to PMUK all those business activities related to sports management carried on directly by her in Mainland China, Hong Kong and the Far East region. PMHK is also in the process of forming a wholly foreign owned enterprise  which will carry on business in Mainland China and which is expected to benefit from certain new contracts.

Ms Irene Cheung will join the Executive Board of CSM Sport and Entertainment which is chaired by Lord Coe.

For the year to 31 December 2012 those business activities which have been transferred to PMUK generated revenue of HK$54 million (£4.5 million) and profit of HK$16.3 million (£ 1.4 million). PMUK has no gross assets.

Initial consideration for the acquisition is HK$128 million (£10.8 million).  Of this sum 20% has been paid in cash with the remaining 80% being paid once the WFOE is established and trading.  HK$89.6 million (£7.5 million) of this will be paid in cash and the remaining HK$12.8 million (£1.1 million) will be financed through the issue of new Chime ordinary shares to Ms Irene Cheung.

The acquisition is expected to be broadly earnings neutral but will significantly enhance the geographical spread of CSM Sport and Entertainment’s activities and provide access to the Chinese and South East Asia markets.

Further deferred consideration may become payable over the period to 2017 depending on the performance of PMUK.  Such deferred consideration is capped at HK$97 million (£8.2 million).

WARL

Chime has agreed to acquire WARL from its three shareholders, Marcus Wilcox, Kerry Bateman and Brian Lloyd.

WARL brings specialist retail and shopper skills to the VCCP Partnership.

WARL was founded in 1998.  It has developed a unique ‘shopper marketing’ model utilising shopper insight to drive greater sales conversion.  WARL has a significant blue-chip client base including Diageo, Tesco’s F&F brand, United Biscuits, McArthurGlen and, more recently, Coca Cola and Samsung.

Initial consideration is £4.5 million of which 30% will be funded by the issue of 521,062 new Chime ordinary shares.  Further deferred consideration may become payable over the period to 2018 depending on the performance of the business. This is capped at £8 million of which at Chime’s option, 40% may be satisfied through the issue of new Chime ordinary shares.

For the year to December 2012 WARL generated revenue of £4.3 million and an operating profit of £1.1 million.  As at 31st December 2012 WARL’s gross assets were £2.5 million.

The acquisition is expected to be immediately earnings enhancing and provides VCCP with a strong position in ‘shopper marketing’ which is of increasing importance to their existing and future clients.

Application will be made for the 521,062 new ordinary shares being issued as part of the initial consideration for WARL to be listed on the Official List of the Financial Services Authority and to be admitted to trading by the London Stock Exchange on its main market for listed securities. It is expected that dealings in the new ordinary shares will commence on 22nd May 2013. The new ordinary shares will rank pari passu with Chime’s existing issued shares.

The issued share capital of Chime is currently 85,148,297 ordinary shares, each with voting rights. Therefore following admission of the new ordinary shares the issued share capital of Chime on 22nd May 2013 will be 85,669,359 ordinary shares each with voting rights.

Christopher Satterthwaite, Chief Executive of Chime Communications, said, “We are delighted with these two acquisitions which are in line with our stated strategy.  We know Irene Cheung well and China is a key market opportunity for CSM Sports and Entertainment. WARL, with its focus on data analysis and return on investment gives VCCP a strong opportunity with its client base, be they FMCG or Retail”.

UK, London and Shanghai

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