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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Ziff Davis acquires NetShelter from inPowered

May 20, 2013 — Fusion DigiNet

ziffdavisZiff Davis, the  digital media company in the technology, gaming and men’s lifestyle categories, has acquired NetShelter. The terms of the deal were not disclosed. Ziff Davis is a division of j2 Global, Inc.

NetShelter is a network of over 150  consumer and business tech sites, including AndroidCentral.com, MacRumors.com, Neoseeker.com, SlashGear.com and TechSpot.com, which create over 40,000 articles every month, delivering nearly 16 billion ad impressions per year.

Vivek Shah, CEO of Ziff Davis, said: “The acquisition of NetShelter fully returns Ziff Davis to the dominant netsheltermarket position in the technology vertical. We will combine our best-in-class ad targeting capabilities and trading desk expertise with what our marketers need most today: High-quality, high-impact inventory that’s available at scale on trusted sites frequented by tech enthusiasts.”

Hemi Zucker, CEO of j2 Global, said: “This acquisition not only extends Ziff Davis’ leadership position in the tech vertical but makes Ziff Davis overall one of the largest digital media companies in the U.S. that can deliver advertisers targeted, highly desirable audiences of significant scale.

USA, New York, NY

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WPP announces results for the year ended 31 December 2012

May 2, 2013 — Fusion DigiNet

wppWPP has today posted its annual report and accounts for the year ended 31 December 2012.

A copy is available to view on WPP’s website www.wpp.com.

  • Read the letter to shareholders here
  • Full financial statements are available here

Highlights

  • Reported billings were down slightly at £44.4 billion, but up 1% in constant currencies.
  • Revenues were up 3.5% to £10.4 billion and up almost 6% in constant currencies. Including 100% of associates, revenue is estimated to total 2.6 billion ($20.0 billion).
  • Headline PBIT was up over 7% to £1.531 billion against £1.429 billion in 2011 and up over 11% in constant currencies.
  • Headline PBIT margin was 14.8% in 2012 against 14.3% in 2011 (surpassing the historical pro forma high of 14.3% in 2008) On gross margin, the headline PBIT margin was 16.1%, up 0.6 margin points on 2011.
  • Reported profit before interest and tax rose over 4% to £1.311 billion from £1.258 billion. Headline EBITDA increased by 7% to £1.756 billion.
  • Headline profit before tax was up over 7% to £1.317 billion and reported profit before tax was up over 8% to £1.092 billion.
  • The share price is up by 31% in 2012 to 888.0p at year end. (2013, 16% since 1st January).
  • Dividends increased by almost 16% to 28.51p (a record level).
  • Diluted headline earnings per share were up over 8% to 73.4p (an all-time high) and diluted reported earnings per share decreased by over 2% to 62.8p, reflecting the release of prior year tax provisions in 2011.
  • Free cash flow strengthened to £1.094 billion in the year, over £1 billion for the second consecutive year.
  • Net debt averaged £3.2 billion in 2012, up £0.4 billion at 2012 exchange rates, and net debt at 31 December 2012 was £2.8 billion, £0.3 billion higher than 2011, reflecting increased spending on acquisitions (chiefly AKQA) and higher dividends.
  • Average net debt, was around 1.8 times headline EBITDA in 2012 compared with 1.7 times in 2011, and well within the Group’s current target range of 1.5-2.0 times.
  • In September 2012, the Group successfully issued $500 million of 10-year bonds at a coupon of 3.625%, together with $300 million of 30-year bonds at 5.125%.
  • So far, in the first three months of 2013, average net debt was up approximately £0.3 billion at £3.0 billion against £2.7 billion for the same period in 2012, at 2013 exchange rates.
  • With a current equity market capitalisation of approximately £13.0 billion, the total enterprise value of WPP is approximately £16.3 billion, a multiple of 9.1 times 2012 headline EBITDA.

UK London

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Publicis unveils €3 billion acquisition plan

April 26, 2013 — Fusion DigiNet

PublicisAccording to reporting by Campaign, Publicis Groupe unveiled a six-year growth plan at an event for investors at LBi London’s offices on Tuesday. Jean-Michel Etienne, the chief financial officer of Publicis Groupe, said that “the envelope [for acquisitions] will be €500 million each year.” LBi is a digital communications agency acquired by Publicis last year valuing LBi at approximately €416 million.

Deals are likely to focus on digital technology businesses in markets including Brazil, Russia, China, Turkey and India as well as countries in South East Asia.

Publicis has been highly acquisitive over the last few years. See related articles below.

France, Paris & UK, London

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LIN Media acquires majority ownership in HYFN

April 4, 2013 — Fusion DigiNet

linLIN TV Corp., a local multimedia company, has acquired a majority ownership position in HYFN, a full service digital agency that develops and implements mobile, social and web experiences for some of the world’s largest brands. Morgan Harris, founder of HYFN, will continue in his role as Chief Executive Officer.

“Our acquisition of this growing and successful company is part of our continued investment to build our digital media ecosystem in a strategic way that drives synergies and positions us as the leading one-stop-shop for all marketing needs,” said Vincent L. Sadusky, President and Chief Executive Officer of LIN Media.

Founded in 2000 with offices in Los Angeles, California and New York, New York, HYFN is a collective force of strategic, creative, engineering and client service specialists that deliver results-driven campaigns for mid-size, Fortune 500 and global companies that want to reach and engage their target audiences wherever they are, on any device.

“The demand for robust social and mobile marketing solutions that break through the clutter continues to grow at a rapid pace,” said Robb Richter, Senior Vice President Digital. “We’ve been extremely impressed with HYFN’s digital capabilities, business model and the strength of their management team. There are important competitive advantages that result from having the agency’s creative talent in the same room as their engineers.”

USA, Providence, RI

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News Corporation sells stake in Phoenix Satellite Television Holdings

March 22, 2013 — Fusion DigiNet

News Corporation’s wholly-owned subsidiary Star Entertainment Holdings Limited is to sell an approximately 5.28 percent stake in Phoenix Satellite Television Holdings Limited for approximately $92 million. Following the sale, Star Entertainment Holdings Limited’s total ownership stake in Phoenix will be reduced to approximately 12.16 percent.

James Murdoch, Deputy Chief Operating Officer and Chairman and CEO, International, News Corporation, said, “Mr Liu Changle and Phoenix’s accomplishments in the media industry in China are remarkable. We believe the company’s strong position in all of the segments in which it operates, combined with the country’s robust consumer market, will continue to drive growth. Today’s sale is simply a part of our broader global agenda of simplifying our affiliate ownership structures.”

Hong Kong

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SFX to acquire dance music events producer ID&T

March 21, 2013 — Fusion DigiNet

SFX Entertainment is to acquire ID&T, the producer of dance music festivals and events worldwide. The deal follows a previously announced joint venture between SFX and ID&T, which will bring ID&T events to North America. SFX is to acquire 75 percent of the company, which is valued at approximately $130 million.

Based in Amsterdam, ID&T is a privately held company that has produced events in Europe and around the world for more than 20 years, welcoming every type of dance music fan to indoor and outdoor events. Among the brands in the ID&T family are Sensation and Mysteryland. Sensation is an indoor house music brand, with events in 20 countries around the world. Mysteryland hosts 60,000 visitors in the Netherlands, 25,000 visitors in Santiago de Chile and will further expand worldwide the next few years.

“This is a hugely significant and strategically important acquisition for SFX,” said Robert F.X. Sillerman, Chairman and CEO of SFX Entertainment. “With ID&T, SFX has an immediate global footprint in more than 20 markets worldwide. ID&T productions are known for being of the highest quality and for producing maximum entertainment for their fans. Their exceptional team has developed amazing dance music brands with tremendous global reach.”

The acquisition of ID&T follows recent acquisitions by SFX of dance music brands Life In Color, Disco Donnie, Miami Marketing Group and Beatport.

USA, New York, NY & The Netherlands, Amsterdam

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WPP makes strategic investment in SFX Entertainment Posted on March 18, 2013

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Demand Media acquires Creativebug

March 19, 2013 — Fusion DigiNet

Demand MediaDemand Media has acquired Creativebug. Creativebug is a video art and craft instruction website. The acquisition will accelerate Demand Media’s expansion into e-Learning.

“We’re seeing a ‘disruption and reinvention’ in the way that people are learning new skills. They are increasingly going online to learn both practical and creative skills, and we believe this convergence has huge potential,” said Joanne Bradford, Chief Marketing and Revenue Officer, Demand Media. “Instead of browsing at a bookstore or attending a class at the local community college, people are going online to learn from a world-renowned expert at a time that fits their schedule, accessing online videos from their smartphone, tablet or desktop.”

“Creativebug masterfully leveraged the e-learning and craft trend in the emerging ‘Create it Yourself’ movement to become a leader in this market,” added Dan Brian, Executive Vice President of Media. “We’ve seen interest in craft-related content on eHow grow more than 20% on average every year over the last three years. We’re sprinting to keep up with demand, adding 29% more video content over the same period. Millions of people who visit eHow every month will be able to access Creativebug’s video workshops led by the top artists and designers in the world. We’re thrilled to add the passionate Creativebug team to the Demand Media family.”

USA, Santa Monica, CA

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WPP makes strategic investment in SFX Entertainment

March 18, 2013 — Fusion DigiNet

wppWPP has made a strategic investment in SFX Entertainment, Inc., a digital media company described as a global platform for electronic dance music events.

Based in New York City, SFX was founded by Chairman and Chief Executive Officer Robert F. X. Sillerman in 2011. Sillerman and his senior management team average over 30 years’ experience in entertainment and music-related businesses, including acquiring and consolidating companies that specialise in producing and promoting live events.

SFX has created a global platform for dance music through acquisition and partnership with some of the leading festivals, events, clubs and online brands. It has a collective audience of over 100 million connected, highly mobile music fans through its various properties which include: Beatport, ID&T North America (Sensation and Mysteryland), Life In Color, Disco Donnie Presents and Miami Marketing Group, home of LIV, Story and Arkadia.

WPP Chief Executive Sir Martin Sorrell said, “We recognize the value in what SFX is creating and believe we can help bring this valuable audience to our agencies’ global clients. The challenge of navigating through digital and social media is daunting for clients and we believe this partnership can further develop WPP’s content capabilities, particularly in new media in the youth consumer segment.”

UK, London & USA, New York, NY

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M&C Saatchi – Results for the year ended 31 December 2012

March 18, 2013 — Fusion DigiNet

18/3
M&C Saatchi has announced its results for the year ended 31 December 2012

Financial Highlights 2012

  • Revenue £169.5m +11% (2011: £153.1m)
  • Operating Profit £17.1m +11% (2011: £15.4m)
  • Profit Before Tax £17.2m +10% (2011: £15.6m)
  • EPS 15.10p +6% (2011: 14.30p)
  • Dividend 4.95p +10% (2011: 4.50p)

Operational Highlights

  • Strong growth in both revenue and earnings, driven by new business wins and new businesses
  • Global Network performed well across all geographies:
    • UK: revenues up 13%, with CRM and mobile performing particularly well, operating profit up 17%
    • Europe: revenues up 11%, operating profit up 14%, in spite of macro-economic challenges
    • Middle East and Africa: revenues up 121%, well positioned to take advantage of growing African market
    • Asia and Australasia: revenues up 8%, operating profit up 46%
    • Americas: revenues up 19% with the New York agency relaunched in Q4
    • Clear had a disappointing year and have restructured (resulting in a good start to the year)
  • Strong balance sheet maintained, focus on cash control with net cash of £17.9m
  • Final dividend increased 10% to 3.85p, which takes the full-year dividend up 10% to 4.95p

Commenting on the results, David Kershaw, Chief Executive, said:

“M&C Saatchi has made very good progress in 2012. The Group returned double digit revenue and operating profit growth. This arose from new business success, increasingly international and integrated, the profitable growth of new businesses in the mature markets and the rolling out of proven models across the network. This was whilst continuing to invest in further new offices and businesses.

“Looking ahead, we are confident that we will continue to make progress in 2013 and beyond. The strategy continues to deliver. ”

More information here.

UK, London

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