UBM 2011 results

February 28, 2012 — Fusion DigiNet

UBM plc has reported 2011 results.

Highlights

  • Revenues up 9.3% to £972.3m – underlying revenue(a) growth of 7.9%
  • Adjusted operating profit up 17.5% at £201.9m
  • Margin up to 20.8% from 19.3%
  • Fully diluted adjusted EPS up to a record of 56.8p, 6.6p (13.1%) up on 2010
  • Full year dividend up to a record of 26.3p, (2010: 25.0p)
  • Cash generation from operating activities up 31.7% to £203.7m (100.7% cash conversion)
  • Events profits up 44.6% to £135.2m, 62.5% of total excluding corporate costs
  • Emerging Markets revenues up 24.4% to £207.1m
  • Emerging Markets operating profit up 33.4% to £65.6m representing 30.4% of total
  • £71.2m invested in eight acquisitions
  • Debt profile improved with maturities extended, net debt of 2.4x EBITDA

David Levin, UBM’s Chief Executive Officer, commented:  “2011 has been a strong year for UBM, with EPS up over 13% to a record 56.8p.  An outstanding performance from our Q4 biennial events capped off a year of consistent delivery in which all our businesses met or exceeded their targets for the year. On the back of these results, the Board has declared a final dividend of 20p, up 1p over 2010, resulting in a record dividend for the year.”

“These results are the fruit of our consistent strategy to focus on providing marketing, communications and data services, in winning formats, to thriving business communities.  Our Emerging Markets revenues grew by more than 24% during 2011 and contributed just under a third of our overall profits: in 2011 we generated more revenue in China than in Europe for the first time. Our Events business performed particularly well and 1.7 million people attended UBM events in 2011, up from 1.3 million in 2010 with profits growing by 45%. The solid performance of Data Services and PR Newswire in 2011 reflects the initial benefits of our continuing investment in these businesses. Our Marketing Services businesses also continue to develop well, with the combined effects of continuing strong digital growth and print disposals likely to result in online revenues outstripping print revenues in 2012.”

“2012 trading has started well. We anticipate continued underlying growth and a positive performance across the business whilst recognising the continuing uncertainties of the global economy.”

Business performance

Full Year 2011

Full Year 2010

Change %

Change at CC

%

Underlying Change %
Revenue

£972.3m

£889.2m

9.3

11.3

7.9
Adjusted operating profit

£201.9m

£171.8m

17.5

19.8

2.3
Adjusted operating profit margin

20.8%

19.3%

1.5%pts

 

 
EBITDA

£218.7m

£188.2m

16.2

 

Adjusted PBT

£177.4m

£156.4m

13.4

 

 
Adjusted EPS

Fully diluted adjusted EPS

57.8p

56.8p

51.0p

50.2p

13.3

13.1

 

 
Dividend per share

26.3p

25.0p

5.2

 

 
Cash generated from Operations

£203.7m

£154.7m

31.7

 

 

 

 
IFRS Statutory results (£m)

Full Year
2011

Full Year
2010

Change
%
Revenue

972.3

889.2

9.3
Operating profit

155.4

132.3

17.5
Profit after tax

86.1

99.4

(13.4)
EPS (p)

31.1

37.3

(16.6)
Net Debt

526.4

484.6

 

 

 

  

Operational Highlights

Segmental results

 

Full Year

Full Year

Change

Change at CC

Underlying Change
£m

2011

2010

%

%

%
Revenue

Events

396.9

310.0

28.0

30.8

14.6
PR Newswire

187.8

181.2

3.6

6.6

4.2
Data Services

187.0

184.7

1.2

2.3

3.0
Marketing Services – Online

88.5

69.2

27.9

31.7

16.4
Marketing Services – Print

112.1

144.1

(22.2)

(22.0)

(4.6)
Total Revenue

972.3

889.2

9.3

11.3

7.9
 

 

 

 
Adjusted Operating Profit

 

 

 
Events

135.2

93.5

44.6

47.9

 
PR Newswire

41.0

42.1

(2.6)

0.2

 
Data Services

30.3

34.1

(11.1)

(11.1)

 
Marketing Services – Online

3.6

1.3

176.9

200.0

 
Marketing Services – Print

6.1

10.0

(39.0)

(40.2)

 
Net corporate costs

(14.3)

(9.2)

(55.4)

(55.4)

 
Total Adjusted Operating Profit

201.9

171.8

17.5

19.8

 
 

 

 

 

 

 
Adjusted Operating Profit Margin          
Events

34.1%

30.2%

3.9%pts

  
PR Newswire

21.8%

23.2%

(1.4)%pts

  
Data Services

16.2%

18.5%

(2.3)%pts

  
Marketing Services – Online

4.1%

1.9%

2.2%pts

  
Marketing Services – Print

5.4%

6.9%

(1.5)%pts

  
Total Adjusted Operating Profit Margin      

20.8%

19.3%

1.5%pts

 

 

Read the full announcement

UK, London

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Publicis Groupe acquires U-Link Business Solutions

February 24, 2012 — Fusion DigiNet

Publicis Groupe has acquired U-Link Business Solutions Co. Ltd (UBS), one of the leading Chinese agencies specialised in healthcare communications.

UBS will become part of Publicis Healthcare Communications Group (PHCG) and will be renamed UBS Saatchi & Saatchi Health.

Founded in 1997, UBS employs approximately 170 people at its Shanghai headquarters and Beijing office. UBS offers PR, events management, medical association relationships and brand management to its clients, which include Abbott, GenSci Pharmaceuticals, Johnson & Johnson, Novartis, Novo Nordisk, Pfizer, Roche, Wyeth and Xian-Janssen.

“The Chinese healthcare market is one of the fastest growing in the world” declared Nick Colucci, CEO and President of PHCG: “Adding UBS to our portfolio brings the Saatchi & Saatchi Health flagship brand to China, and will make PHCG one of the largest healthcare communications groups in the region.”

UBS co-founder and CEO Frank Xu will remain at the helm, taking the title of Managing Director and reporting directly to Ash Kuchel, President of PHCG Asia Pacific region.

With UBS’s acquisition PHCG continues its expansion in Asia, following its recent acquisitions of Beijing Dreams Advertising and Beijing Dreams Zhiyang Communication (May 2011) and the India-based Watermelon agency (March 2011).

This is the latest in a series of China agency additions for Publicis Groupe that includes Wangfan and Gomye (November 2011), Genedigi (June 2011), Dreams (May 2011), Interactive Communications Ltd (February 2011) and Eastwei Relations (November 2010).

France, Paris & China, Shanghai

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Aegis acquires US digital agency, Roundarch, for initial consideration of $125m

February 22, 2012 — Fusion DigiNet

Media and digital communications group Aegis Group plc is to acquire the holding company of Roundarch Inc., the US digital agency, for an initial consideration of US $125 million.

Roundarch is a leading digital agency which specialises in designing and building enterprise-class digital solutions for clients such as Avis, HBO, Bloomberg Sports, Motorola and the US Air Force. The acquisition of Roundarch is in line with Aegis Group’s strategy to target acquisitions with a specific focus on digital businesses, North America and faster-growing regions.

With offices in Chicago, Denver, Boston and New York Roundarch employs 250 staff and its service offerings include strategy, design, development and outsourcing across all digital channels, including web, mobile and social media.

Following the acquisition, Roundarch will be combined with Isobar, Aegis Media’s existing digital creative network in the US, to form RoundarchIsobar. RoundarchIsobar will be a top tier digital agency with the depth and resources to compete for domestic and global assignments against the leading digital players in the US, consolidating Aegis’s competitive position in this important vertical.

Commenting on the acquisition of Roundarch, Jerry Buhlmann, Chief Executive of Aegis Group plc said, “We are delighted to announce the acquisition of Roundarch which is a highly successful US digital agency with a strong track record of sustained growth and performance. Combining Roundarch with Isobar places Aegis at the forefront of digital communications in the US, the world‘s largest advertising market.  Following its integration, we expect the proportion of Aegis Media’s total global revenues from digital to increase to 40%.

The acquisition of Roundarch is subject to a five-year earn-out structure from 2012 to 2016 with further annual consideration payments being made, subject to the level of future profit growth attained. The total consideration for the acquisition by 2017 is expected to be around US $250 million (£159 million). If Roundarch significantly outperforms existing projections, the total consideration could be higher with a cap on the maximum amount payable of US $360 million (£228 million). All consideration payments will be satisfied in cash.

The audited profit before tax of Roundarch for the year ended 31 December 2010 was US $ 11.5 million and the value of the gross assets at that time was US $14 million.

The vendors are Geoff Cubitt, Jeff Maling and other shareholder employees. Geoff Cubitt and Jeff Maling will co-lead the new US entity of RoundarchIsobar, with Darryl Gehly, President of Isobar North America.

Nigel Morris, CEO of Aegis Media Americas said: “As demonstrated by our recent win of GM’s global media business, Aegis Media has real momentum in the US market and this acquisition is a very significant part of our overall plan and will make us even more of a force for convergence and innovation. A powerful Isobar has been key to that plan and Roundarch is an agency we have admired for a long time, with great people, doing great digital work. Bringing them together with Isobar to create RoundarchIsobar will produce a new powerhouse in the US digital agency sector and add US scale to the global geographic depth of the Isobar network.”

Jeff Maling, President & Chief Experience Officer of Roundarch said, “Combining with Isobar NA will give us a formidable US presence and make us a part of one of the most respected global digital agencies. The deal will also expand our strong design and technology capabilities to include world-class marketing.”

UK, London & USa, Boston, MA

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Publicis Groupe full year and fourth quarter results

February 10, 2012 — Fusion DigiNet

Publicis Groupe has reported results for the full year and fourth quarter ended December 31, 2011.

Publicis Groupe is the most active acquirer by volume in the Media and Marketing industry between 2009 and 2011 with 39 transactions, 24 of which were announced or closed in 2011. A list of Publicis Groupe acquisitions articles published on Fusion DigiNet is at the end of this article.

“In a context of sovereign debt crisis and economic slowdown, Publicis has not only outperformed the market, more remarkably it has improved on its own outstanding performance of 2010. The Group’s margin, which has improved very satisfactorily, is back on the 16% mark while we continued investment in technology and talent,” said Maurice Lévy, Chairman & CEO of Publicis Groupe. “We have continued to pursue our strategy of making targeted acquisitions in digital communications and high-growth countries.”

KEY FIGURES

ANALYSIS OF THE KEY FIGURES

  • Published growth             +7.3%
  • Organic growth                +5.7%
  • New Business (net)         $7.9 bn
  • Operating margin            +8.8%
  • Net income                         +14.1%
  • EPS                                       +12.3%
  • Free Cash Flow                 +9%

ACQUISITION ACTIVITY

Since the start of 2012, Publicis Groupe has made two acquisitions:

  • Mediagong in France: a digital agency specialised in digital strategy consulting, the social media,advergaming and mobile communications.
  • The Creative Factory in Russia: highly reputed in its specialized areas, namely, marketing, digital services, digital production and video. This Moscow-based agency will enable Saatchi&Saatchi to expand its foothold in Russia.

In addition to these two acquisitions, Publicis Groupe has launched a friendly takeover bid on Pixelpark, the independent German leader in digital communications.

Pixelpark’s core businesses range from the creation of digital brands, consulting, content management, the social media, mobile marketing, eBusiness solutions and data analysis and management. Publicis Groupe’s public offering has the support of Pixelpark AG’s Management Board and Supervisory Board. The bid will be tabled by the Groupe’s German subsidiary MMS Germany Holdings GmbH (MMS) registered on the Dusseldorf trade register under the reference HRB 50291. MMS will offer Pixelpark (ISIN DE000A1KRMK3) shareholders a consideration of 1.70 euro per share in exchange for their bearer shares of no nominal value. This offer is at a premium of some 28% over the estimated average share price of Pixelpark (1.33 euro) as traded on the German stock exchange during the three months up to January 20, 2012. The offer is scheduled to begin in mid-February. To date, the shares tendered by Pixelpark shareholders to MMS represent approximately 56.51% of the authorize share capital and voting rights. Among others conditions precedent, the bid will be subject to MMS acquiring at least 75% of the current share capital. The acquisition by MMS of the majority of Pixelpark shares must also be approved by Germany’s Federal Cartel Office.

On February 1, the Group announced the acquisition of Flip Media, one of the large digital agency networks in the Middle East. Flip Media is present throughout the digital chain, offering a comprehensive range of services from strategy, digital design and production, content to technological platforms. With an original, proprietary creation technology that has received many awards, Flip Media words with a number of emblematic brands.

Click here for the full Publicis Groupe announcement and fouth quarter information.

France, Paris

A list of all Publicis Groupe aquisition activity published on Fusion DigiNet is below.

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Smart Business Network acquires OnMark Solutions

February 7, 2012 — Fusion DigiNet

Smart Business Network has acquired OnMark Solutions, a full-service e-marketing services company in Cleveland.

“We’re excited to add OnMark Solutions’ extensive e-marketing knowledge to our team,” said Fred Koury, President and CEO of Smart Business Network. “Their proven track record for producing creative and effective e-messaging strategies and programs for B2B and B2C clients will be a great complement to our talent base.”

OnMark Solutions’ client list includes a broad range of organisations, including Peeps Candy Co., American Red Cross, Achievement Centers for Children, BioPlastics and The Smithers Group. As part of the acquisition, OnMark Solutions founder Kristy Amy will join Smart Business Network as vice president of business development.

The OnMark Solutions acquisition was the third in the past year for Smart Business Network, which previously acquired the custom content firm Wise Group in January 2011 and digital design firm Flique Creative in August 2011.

USA, Cleveland, OH

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The Jim Pattison Group acquires magazine distributor Comag Marketing Group

February 3, 2012 — Fusion DigiNet

 The Jim Pattison Group, a privately owned, Vancouver, BC-based conglomerate which owns The News Group, has acquired the national magazine distributor Comag Marketing Group, LLC (CMG) from Hearst Magazines and Condé Nast. Terms were not disclosed. Jay Felts will continue as president of CMG and the firm’s headquarters will remain in Princeton, New Jersey.

CMG U.K. is not part of the transaction and will continue to be owned by National Magazine Company Ltd. and Condé Nast U.K.

Michael Korenberg, deputy chairman of The Jim Pattison Group and a member of its Board of Directors, said, “This transaction will strengthen the newsstand channel and, at the same time, enable Hearst and Condé Nast, as publishers, to focus on their core competencies — editorial development, retail marketing and consumer promotion. We believe that with the strength of its management team and systems, CMG can consolidate and improve publisher services as well as add stability for all stakeholders in the single-copy marketplace.”

Canada, Vancouver, British Columbia & USA, Princeton, New Jersey

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Isobar Acquires Digital Agency The Upper Storey

January 31, 2012 — Fusion DigiNet

Media and digital marketing group Aegis Group plc has acquired a minority share in The Upper Storey Pte Ltd (“TUS”), an award-winning digital creative agency based in Singapore. TUS will become part of Isobar in Asia Pacific and will be rebranded as TUS Isobar.  TUS’s gross assets as of 31 October 2011 were S$0.9 million.

Founded in Singapore in 2001, The Upper Storey is one of a new breed of digitally savvy agencies with through-the-line thinking. The agency specialises in engaging consumers through innovative digital campaigns, programs and platforms.

TUS has three divisions: The Upper Storey – strategy and creative focused digital marketing, Mofuro – motion graphics, 3D and experience design production, and Studio TUS – the group’s production and technology hub. Their clients include Microsoft, American Express, Intel, Daimler, Dell, Draeger, UOB, Mediacorp, NOL and Como Hotels and Resorts.

UK, London & Singapore

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Publicis Groupe acquires The Creative Factory for Saatchi & Saatchi Russia

January 25, 2012 — Fusion DigiNet

Publicis Groupe has acquired The Creative Factory (TCF), a marketing and advertising agency in Moscow with a strong track record in specialty areas such as trade and shopper marketing, PR and event management, digital and digital production, and video production. TCF will be fully integrated into Saatchi & Saatchi Russia.

Founded in 2001, TCF and its 48 communication professionals work across standard mass media and innovative sectors — offering clients such as Burger King, IKEA, JTI (tobacco), John Deere, Nike, Rehau (plastics), Tele2 (telecommunications) and UNIQLO true “through-the-line” solutions. This offering is highly complementary to Saatchi & Saatchi Russia’s strength in traditional media and its work for clients such as The Coca-Cola Company, Dixy, Emirates Airlines, Friesland Campina, JTI, Kraft Foods, Procter & Gamble, Novartis Pharmaceuticals and Twinings Tea. In the last three years its revenue has grown by over 30%.

TCF’s founders, Alex Shifrin and Sam Rothman, will stay on with Saatchi & Saatchi as Managing Directors and will report toShannon Cullum, Saatchi & Saatchi Russia’s CEO.

“It‘s no secret that the global marketing landscape is changing dramatically, and Russia is changing faster than most,“ said Robert Senior, Saatchi & Saatchi CEO for EMEA. “We need to offer our clients the unreasonable power of creativity in all its forms, which means continuing to move out of traditional thinking and traditional media, and more and more into areas where The Creative Factory excels.“

France, Paris & Russia, Moscow

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ePrize acquires mobile solutions Company Cellit

January 19, 2012 — Fusion DigiNet

ePrize, a digital engagement agency specialising in interactive mobile, social media, and web campaigns, has acquired Cellit, a Chicago-based mobile marketing agency.

Cellit’s expertise in mobile marketing and customer relationship management (CRM) solutions include short message services (SMS), mobile-optimized sites and mobile applications.

“Rapid consumer adoption of mobile technology is fundamentally changing how brands engage and inform the public about new products and services,” said Matt Wise, ePrize CEO. “MMA Global reported that 83 percent of mobile users take their phones with them everywhere; and CTIA reports that 74 million people in the U.S. have opted in to text messages from marketers. Brands with a mobile component in their campaign have a huge opportunity to capture consumers wherever they are and whenever they’re ready.”

In 2012, ePrize expects mobile revenue to triple as a result of the Cellit acquisition. Administering four-times more national promotions than any other company, ePrize forecasts that 80 percent of campaigns will incorporate a mobile component developed by ePrize by the end of 2012, growing from 20 percent in 2011.

This marks the second acquisition in six months for ePrize, after acquiring the customer relationship management division of Apollo Data Technologies in July 2011.

Through the acquisition, Cellit now is a division of ePrize named “Cellit: ePrize Mobile Solutions.” David Wachs, founder and president of Cellit, has joined the ePrize executive team as senior vice president of Mobile, and general manager of Cellit. Cellit offices and the company’s 16 employees will remain in Chicago, with plans to combine office space with ePrize’s Chicago team in the near future.

USA, Pleasant Ridge, MI & Chicago, IL

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Ogilvy buys 33.3% stake in DTDigital

January 19, 2012 — Fusion DigiNet

Ogilvy & Mather has acquired a 33.3% position in STW’s digital communications firm, DTDigital.

Australian digital agency DTDigital joined STW Group in 2003 and during the next eight years grew revenues from $1 million per annum to forecast revenue for 2012 of $14 million. Clients include Bunnings, Myer and NAB.

For the past four years, DTDigital has been working alongside Ogilvy in Melbourne. Today DTDigital has more than 110 full-time staff in its Melbourne office. STW Group owns 66.7% of Ogilvy Group Australia, with WPP holding the remaining 33.3%. The investment by WPP in DTDigital brings its ownership in line with that of Ogilvy Australia.

“Ogilvy know brand, social and CRM while DTDigital provides great digital, channel and technology skills making the combination a winning formula. We have worked in partnership for the past four years and acquiring part of DTDigital cements that relationship, allowing us to offer first class integrated digital to clients inside Australia and across Asia,” said Paul Heath, CEO, Ogilvy & Mather Asia Pacific.

Australia, Sydney

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