Close menu

December 11th, 2019 | 19:52 CET

Syzygy as expected due to Daimler, Lufthansa and Porsche

  • Marketing
Photo credits:

Syzygy AG, the internationally active German full-service agency for digital marketing, recently published its results for the first nine months of 2019. Syzygy AG's operating performance was characterised by the continued positive development of its German subsidiaries, which, however, were offset by the continued decline in business at the companies operating abroad, in particular the UK subsidiaries. The group operates as a creative, technology and media service provider for digital marketing.

time to read: 2 minutes | Author: Mario Hose
ISIN: DE0005104806 , DE0007100000 , DE0008232125 , DE000PAH0038

Table of contents:

    Sales in Germany increase

    Compared to the previous year, the subsidiaries operating in Germany achieved a sales increase of 6.0% from EUR 34.29 million in the previous year to a new record high of EUR 36.34 million, starting from an already higher level. On the one hand, this reflects the stronger concentration on the German market that has been achieved and, on the other hand, the sales impulses from the acquisition of new customers. In addition to Lufthansa, for which Syzygy AG acts as new lead agency, many well-known customers such as Daimler Financial Services, Deutsche Bahn and Porsche were acquired.

    International subsidiaries burden the business

    The positive development in Germany had not been able to compensate for the weakness in sales in the UK business, so that a slight overall decline in sales from EUR 48.06 million to EUR 47.63 million is visible across the group, corresponding to a decline of -0.9%. In line with the slight decline in revenues, EBIT fell from EUR 4.55 million to EUR 4.16 million in the first nine months of 2019. The regional differences in the development of the Syzygy subsidiaries can also be seen here.

    While the EBIT contribution of the German companies reached a new record high of EUR 5.03 million after EUR 4.63 million in the previous year, the EBIT of the international companies was below the break-even point at EUR -0.26 million compared to EUR 0.94 million in the previous year. In addition to the already low sales revenues in Great Britain, this includes the restructuring expenses incurred in previous reporting periods.

    In line with the expectations of GBC Research

    Overall, the figures for the first three quarters of 2019 were in line with GBC Research's expectations in absolute terms. Syzygy's management has also confirmed the previous Guidance, according to which revenues should reach the previous year's level and an EBIT margin of 8 to 9% by the end of the 2019 financial year.

    Increase in EBIT margin expected

    The profitability level achieved in the first nine months is exactly within the expected EBIT margin range. According to GBC's experts, the restructuring measures in the UK should be largely finalised, with no further charges expected in the fourth quarter of 2019. For the coming financial year, the absence of restructuring charges should have an impact throughout the year, enabling the company to achieve further return improvements. Accordingly, GBC continue to forecast an increase in the EBIT margin to 10%.

    Analysts confirm price target and rating

    In line with the confirmed company forecast, the analysts of GBC maintain their estimates unchanged. Their DCF valuation model and the target price of EUR 10.80 remains unchanged and they continue to award the BUY rating.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author

    Related comments:

    Commented by André Will-Laudien on April 21st, 2022 | 13:28 CEST

    Split & Dividend: Allianz, Aspermont, Amazon - These Triple-A stocks are a joy to watch!

    • Digitization
    • Marketing
    • Media

    In volatile stock market times, investors are again focusing on the time-honored virtues of investing in stocks: stable business models, profits, cash flows, and dividends receive special attention. If a company can also announce investor-friendly buyback programs or splits, then it is usually a liquid and growing Company that has its investors in mind and is also prepared to share. In 2021, the payout ratio of the companies included in the German selection indices was around 42%. That means that almost half of the profits generated end up with the investor. Historically, this figure has fluctuated between 37 and 51%. We look at companies that stand out with special actions.


    Commented by Carsten Mainitz on February 2nd, 2021 | 07:20 CET

    Facebook, AdTiger, ProSiebenSat.1 - anything but boring, don't miss this opportunity!

    • Marketing

    According to Statista, the market for digital advertising will increase globally to USD 526 billion by 2024. In 2018, the market volume was still at USD 283 billion, representing an annual growth rate of almost 12%. The continuing shift of advertising budgets to digital is irreversible. We present three exciting investment stories from the advertising sector. Not to be missed.


    Commented by André Will-Laudien on January 4th, 2021 | 08:50 CET

    Alphabet, AdTiger, Allgeier - Buy AAA in 2021!

    • Marketing

    According to statistics, today's people use the Internet 17 times every day. Whether with their smartphone, at the supermarket checkout or on their PC. The most frequent use is search processes, social media, work access or shopping transactions. The number of Internet users worldwide has risen continuously and amounted to around 4.1 billion in 2020, which means that online users have increased by approximately 125% percent within ten years. According to one estimate, Asia will have been the region with the most Internet users in mid-2020, with 2.5 billion users. EMEA followed by a wide margin with around 730 million online users. However, North America represents the region with the highest proportion of Internet users. The estimated penetration rate was about 90%, Europe was at 78%, and Asia at around 59%, was still below the global average.