Latest news with #Datastream
Yahoo
16-03-2025
- Business
- Yahoo
£25,000 invested in Rolls-Royce shares 3 years ago is now worth…
£25,000 invested in Rolls-Royce (LSE:RR) shares three years ago would now be worth around £210,000. Hurts to say that because I did have a sizeable Rolls-Royce holding, which was reduce for a house purchase. Nonetheless, I'm thankful for having some exposure to this 738% rally. The remarkable bounce in Rolls-Royce shares stems from a combination of strategic leadership, operational improvements, and favourable market conditions. CEO Tufan Erginbilgiç, who took the helm in 2023, spearheaded a transformative era for the company, focusing on aggressive cost-cutting, efficiency gains, and strategic investments. In 2023, Erginbilgiç launched a comprehensive restructuring programme, streamlining operations and optimising procurement. These efforts paid off in 2024, with Rolls-Royce reporting a 16% revenue increase to £17.8bn and a 57% jump in operating profit to £2.5bn, surpassing expectations. The company also reduced its net debt significantly. Net cash stood at £475m at the end of 2024. This compares to a £2bn net debt position at the end of 2023. The post-pandemic recovery of the aerospace sector played a pivotal role, with large engine flying hours reaching 80-90% of 2019 levels by 2024. Rolls-Royce also secured major defence contracts, including a £9bn deal with the UK Ministry of Defence, further boosting investor confidence. Defence stocks have surged since Donald Trump's return to office. His demands for NATO members to raise defence spending have created a favourable environment for European defence companies, with the Datastream euro area defence index climbing 25% since his inauguration. What's more, in February, Rolls-Royce announced a £1bn share buyback and reinstated dividends, marking its first payouts since the pandemic. These moves, combined with a strong outlook for 2025, have cemented its position as a top-performing FTSE 100 stock. Things are undoubtedly looking up for Rolls-Royce, with business booming across all sectors. The company has seen a remarkable post-pandemic recovery, driven by strong performance in civil aviation, defence, and power systems. In light of the above, its defence revenue is projected to grow at an 11% compound annual growth rate (CAGR) through 2029. Meanwhile, its operating margins are expected to rise from 14.2% to 15.9%. Additionally, Rolls-Royce's small modular reactor (SMR) initiative has generated significant excitement. Developments have positioned the company as a leader in next-generation nuclear technology. However, the stock's forward price-to-earnings (P/E) ratio of 31.9 times suggests it may appear expensive. That's especially compared to the broader market, particularly as it exceeds the FTSE 100 average. But General Electric, a key competitor, trades at a higher forward P/E of 35.8 times. This suggests Rolls-Royce's valuation isn't an outlier in its niche sector. One risk to consider is the company's reliance on civil aviation earnings, which were acutely highlighted during the pandemic. Any future disruptions in the aerospace sector could impact Rolls-Royce's performance, despite its current momentum. Investors should weigh these factors carefully as the stock continues its upward trajectory. Personally, I'm a little hesitant to add to my position at this elevated level. Nonetheless, I think it's an excellent company. I wouldn't be surprised to see more catalysts. The post £25,000 invested in Rolls-Royce shares 3 years ago is now worth… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has positions in Rolls-Royce Plc. The Motley Fool UK has recommended Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
WIRED
12-02-2025
- Business
- WIRED
This Ad-Tech Company Is Powering Surveillance of US Military Personnel
Joseph Cox Dhruv Mehrotra Feb 11, 2025 11:00 PM In a letter to a US senator, a Florida-based data broker says it obtained sensitive data on US military members in Germany from a Lithuanian firm, revealing the global nature of online ad surveillance. Last year, a media investigation revealed that a Florida-based data broker, Datastream Group, was selling highly sensitive location data that tracked United States military and intelligence personnel overseas. At the time, the origin of that data was unknown. Now, a letter sent to US senator Ron Wyden's office that was obtained by an international collective of media outlets—including WIRED and 404 Media—reveals that the ultimate source of that data was Eskimi, a little-known Lithuanian ad-tech company. This article was created in partnership with 404 Media, a journalist-owned publication covering how technology impacts humans. For more stories like this, sign up here. Eskimi's role highlights the opaque and interconnected nature of the location data industry: A Lithuanian company provided data on US military personnel in Germany to a data broker in Florida, which could then theoretically sell that data to essentially anyone. 'There's a global insider threat risk, from some unknown advertising companies, and those companies are essentially breaking all these systems by abusing their access and selling this extremely sensitive data to brokers who further sell it to government and private interests,' says Zach Edwards, senior threat analyst at cybersecurity firm Silent Push, referring to the ad-tech ecosystem broadly. In December, the joint investigation by WIRED, Bayerischer Rundfunk (BR), and analyzed a free sample of location data provided by Datastream. The investigation revealed that Datastream was offering access to precise location data from devices likely belonging to American military and intelligence personnel overseas—including at German airbases believed to store US nuclear weapons. Datastream is a data broker in the location data history, sourcing data from other providers and then selling it to customers. Its website previously said it offered 'internet advertising data coupled with hashed emails, cookies, and mobile location data.' That dataset contained 3.6 billion location coordinates, some logged at millisecond intervals, from up to 11 million mobile advertising IDs in Germany over a one-month period. The data was likely collected through SDKs (software development kits) embedded in mobile apps by developers who knowingly integrate tracking tools in exchange for revenue-sharing agreements with data brokers. Following this reporting, Wyden's office demanded answers from Datastream Group about its role in trafficking the location data of US military personnel. In response, Datastream identified Eskimi as its source, stating it obtained the data 'legitimately from a respected third-party provider, Vytautas Paukstys, CEO of Eskimi, says that 'Eskimi does not have or have ever had any commercial relationship with Datasys/Datastream Group,' referring to another name that Datastream has used, and that Eskimi 'is not a data broker.' In an email responding to detailed questions from the reporting collective, M. Seth Lubin, an attorney representing Datastream Group, described the data as lawfully sourced from a third party. While Lubin acknowledged to Wyden that the data was intended for use in digital advertising, he stressed to the reporting collective that it was never intended for resale. Lubin declined to disclose the source of the data, citing a nondisclosure agreement, and dismissed the reporting collective's analysis as reckless and misleading. The Department of Defense (DOD) declined to answer specific questions related to our investigation. However, in December, DOD spokesperson Javan Rasnake said that the Pentagon is aware that geolocation services could put personnel at risk and urged service members to remember their training and adhere strictly to operational security protocols. In an email, Keith Chu, chief communications adviser and deputy policy director for Wyden, explained how their office has tried to engage with Eskimi and Lithuania's Data Protection Authority (DPA) for months. The office contacted Eskimi on November 21 and has not received a response, Chu says. Staff then contacted the DPA multiple times, 'raising concerns about the national security impact of a Lithuanian company selling location data of US military personnel serving overseas.' After receiving no response, Wyden staff contacted the defense attaché at the Lithuanian embassy in Washington, DC. It was only after that, and on January 13, that the DPA responded, asking for more information. 'Once additional information is received, we will assess the situation within the scope of our competence and determine the appropriate course of action,' the DPA said, according to Chu. The Lithuanian DPA told reporters in an email that it 'currently is not investigating this company' and it 'is gathering information and assessing the situation in order to be prepared to take well-informed actions, if needed.' If the Lithuanian DPA does decide to investigate and finds Eskimi in violation of GDPR provisions, the company could face significant consequences—including fines up to €20 million. Wyden's office also contacted Google in November, to alert them to Datastream saying that Eskimi, a Google advertising partner, was selling the location data of DOD personnel overseas, Chu says. Jacel Booth, Google spokesperson, wrote in an email that 'Eskimi is currently part of Google's Authorized Buyer program and must abide by our policies.' 'Google regularly audits its Authorized Buyers program participants, and reviews allegations of potential misconduct,' the spokesperson adds. Even if Google does act against Eskimi, there may be plenty more advertising companies ready to sell harvested location data. 'Advertising companies are merely surveillance companies with better business models,' Edwards says. This story was produced as part of an ongoing reporting project from an international coalition of media outlets, including and Bayerischer Rundfunk (Germany), Schweizer Radio und Fernsehen (Switzerland), BNR Nieuwsradio (Netherlands), NRK (Norway), Dagens Nyheter (Sweden), Le Monde (France), and WIRED and 404 Media (US).
Reuters
31-01-2025
- Business
- Reuters
Consumer giants' growth no longer involves food
LONDON, Jan 31 (Reuters Breakingviews) - Think of Unilever (ULVR.L), opens new tab, and the first products that come to mind are likely to be ones you eat - Marmite, Ben & Jerry's ice cream and Hellmann's mayonnaise. Yet the $143 billion company is increasingly investing in other parts of its business, like beauty and wellbeing, and not spending any of its M&A budget on growing its food empire. There's a strong valuation case for doing so. Food was once an exciting revenue stream for the likes of Nestlé (NESN.S), opens new tab, Kraft Heinz (KHC.O), opens new tab and Unilever. The latter spent decades splurging on deals and expanding into new territories like Indonesia and India to gain market share. Shoppers, seduced by big marketing campaigns, were happy to pay over the odds for branded cereals like Cheerios and Heinz tomato ketchup. Yet ever since inflation soared in 2022, consumers have shopped around for the lowest prices, complicating the delivery of consistent revenue and stable margins. In November, Nestlé's new CEO Laurent Freixe revealed how these forces have afflicted the world's largest food manufacturer. Over the medium term, he is only aiming to deliver 4% revenue growth, excluding the effects of M&A and currency swings. That's closer to the lower end of the $227 billion group's previous target of mid-single-digit growth. Freixe is only aiming to keep operating margins steady at 17% over the coming years. Consumer goods more generally are under pressure. In October, Kraft Heinz trimmed its sales and profit outlook for the year. The $36 billion maker of Jell-O also posted a larger than expected hit to its third-quarter sales. Compare that to the business of selling luxury beauty products. Swiss skincare firm Galderma (GALD.S), opens new tab expected to grow revenue between 8.8% and 9.5% in 2024, having delivered 9.2% in the first nine months of the year. And $204 billion French cosmetics giant L'Oréal ( opens new tab is expected to boost sales by around 5% annually over the next three years, more than double the rate of food giants like Nestlé and Kraft Heinz during the same period, as per LSEG estimates. Investors have noticed. Kraft Heinz and Nestlé's enterprise values are roughly 10 times and 17 times the respective operating profit they're forecast to deliver in 2025, using LSEG Datastream figures, which represents a sharp decline from their equivalent 12-month forward multiples of 14 times and 20 times at the start of 2023. Galderma and L'Oréal trade at an average of 28 times 2025 operating profit. Two other food-heavy players, Danone ( opens new tab and Unilever, trade on multiples of 15 and 14 respectively. These diverging fortunes are why Hein Schumacher is drawing a line in the sand. The Unilever boss has already committed to flogging the company's ice cream business, leaving a slimmed-down nutrition unit that includes brands like Knorr stock cubes and Hellmann's. He plans to spend a large share of the company's $9 billion marketing budget, equivalent to 15% of revenue, bulking up the beauty and wellness business, which delivered nearly $14 billion of sales in 2023. According to a person with knowledge of his plans, only two food brands, Hellmann's mayonnaise and Knorr stock cubes, will get a decent slab of this budget. The rest of the food business will be gradually pruned and trimmed. As it stands, beauty and wellness will make up just over a quarter of the operating profit Unilever will deliver in 2025, using analyst estimates gathered by Visible Alpha and excluding the ice cream unit. Meanwhile, nutrition will make up another quarter, home care almost a fifth and personal care close to 30%. Imagine a hypothetical world where Schumacher could in one stroke boost the percentage coming from beauty and wellness to, say, 40% - perhaps via buying up some small brands and luring in more customers with a bigger marketing spend on the division. If the other divisions stayed the same, the nutrition business's contribution would shrink to 12%. This could pay dividends in valuation terms. If Schumacher pulls it off, the enlarged beauty and wellness division would deliver 4.3 billion euros of operating profit. Value that at L'Oréal and Galderma's average 28 times operating profit multiple for 2025, and the division would alone be worth 119 billion euros including debt. If the slimmer nutrition unit is valued on the 16 times average multiple of Nestlé and Danone, it would fetch 21 billion euros. Also putting personal care on 16 times, like Sensodyne toothpaste maker Haleon (HLN.L), opens new tab, would imply a valuation of 51 billion euros. Value Unilever's home care arm like Reckitt Benckiser (RKT.L), opens new tab, on 12 times, and it would be worth 24 billion euros. In total, Unilever would be worth 216 billion euros, before factoring in ice cream, a 25% uplift on the group's current enterprise value. The catch for Nestlé and Kraft Heinz is that their path to redemption is much fuzzier. After all, with the lion's share of their sales stemming from edible brands, it's much harder to pivot to something else. Without a plan B, consumer giants will increasingly split into the haves and the have-nots.
