TIDMERM
RNS Number : 5465D
Euromoney Institutional InvestorPLC
01 February 2018
EUROMONEY INSTITUTIONAL INVESTOR PLC
TRADING UPDATE
FOR THE PERIOD TO DECEMBER 31, 2017
Euromoney Institutional Investor PLC ("Euromoney"), the
international business information and events Group, today issues a
trading update for the period from October 1 to December 31, 2017,
in advance of its Annual General Meeting to be held at 9.30am on
February 1.
Trading
Since reporting its FY17 results on November 22, trading has
continued in line with the board's expectations as set out in the
Preliminary Statement. Total(1) revenues for the quarter to
December 31 increased by 6% to GBP100.8m, with the benefit from the
acquisitions of RISI and Layer123 in the second half of FY17 more
than offsetting the drag from unfavourable exchange rates.
Underlying(2) revenues increased by 3%, with a strong performance
from the event businesses and a gradual improvement in the
subscriptions growth rate.
The following table shows the year-on-year revenue growth rates
for the first quarter on a total(1) and underlying(2) basis.
Q1 FY18 vs Q1 FY17
------------------------ -------- -------- -------------------------
Q1 FY18 Q1 FY17 Total(1) Underlying(2)
GBPm GBPm Change change
------------------------ -------- -------- --------- --------------
Subscriptions/content 65.6 62.4 5% 2%
------------------------ -------- -------- --------- --------------
Advertising 8.5 8.9 (4%) (5%)
------------------------ -------- -------- --------- --------------
Sponsorship 11.8 9.1 30% 15%
------------------------ -------- -------- --------- --------------
Delegates 14.1 12.8 9% 5%
------------------------ -------- -------- --------- --------------
Other 0.5 0.4 12% (18%)
------------------------ -------- -------- --------- --------------
Sold/closed businesses 0.8 5.4 - -
------------------------ -------- -------- --------- --------------
FX losses on forward
contracts (0.5) (3.8) - -
------------------------ ======== ======== ========= ==============
Total(1) revenues 100.8 95.2 6% 3%
------------------------ -------- -------- --------- --------------
Underlying(2) subscriptions and content revenues increased by
2%, an improvement on the FY17 exit rate of 1%. The divergence in
subscription growth rates between the Pricing, Data & Market
Intelligence and Asset Management segments, highlighted in last
year's results, has continued. The growth rate for Pricing improved
to 10%, against an exit rate of 8%, and is now outpacing the MiFID
II-related drag from Asset Management subscriptions, which have
continued to decline by 6%. The rate of decline in underlying(2)
advertising revenues in the quarter was consistent with the
long-term trend.
Although the first quarter is the one of least activity for the
events businesses, underlying(2) event revenues (sponsorship and
delegates combined) increased by 9%. This reflects further success
in the strategic focus on building large, high margin events,
particularly in the telecoms sector; new Banking & Finance
events in Asia; and stronger commodity markets. The outlook for
events in the second quarter, particularly Mining Indaba, the
Group's largest event, is also positive.
Impact of Currency
The Group generates approximately two-thirds of its revenues and
approximately 80% of its operating profits in US dollars. The
currency tailwinds experienced throughout FY17 have turned into
headwinds as Sterling has strengthened significantly against the US
Dollar since the start of the financial year. For the quarter to
December 31, the average Sterling-US Dollar rate was $1.34 (Q1
FY17: $1.25), and the rate has continued to rise in January,
recently passing its pre-Brexit level of $1.40. The average rate
for the rest of FY17 was $1.27, and each one cent movement in the
Sterling-US Dollar rate has a translation impact on FY18 profits of
approximately GBP0.7m on an annualised basis.
M&A Activity
The Group continues to actively manage its portfolio and to
allocate and recycle capital efficiently. During the quarter we
completed one small bolt-on acquisition in the telecoms sector
(TowerXchange), and disposed of three businesses: Adhesion, World
Bulk Wine Exhibition and, since the quarter end, the Institutional
Investor Journals business. In December we also completed the
disposal of our 15% equity interest in Dealogic, at an attractive
valuation of $135m, which frees up significant capital to invest in
our big themes.
Subject to any further M&A activity during the year, the net
impact of these transactions will be a reduction in Adjusted PBT of
approximately GBP4.0m compared to FY17.
The Group's proposed disposal of its Global Market Intelligence
Division (CEIC and EMIS), reported as a discontinued operation in
last year's Preliminary Statement, remains on track and in line
with the board's expectations.
Financial Position
Net debt at December 31, 2017 was GBP49.0m, a decrease of
GBP105.6m since the year-end. This largely reflects the impact of
M&A activity in the quarter, including the disposal of the
minority equity stake in Dealogic, the sale of Adhesion and World
Bulk Wine Exhibition, the acquisition of TowerXchange, and the
purchase of the remaining 15% minority interest in NDR. The Group
continues to generate strong operating cash flows and an adjusted
cash conversion rate in excess of 100%.
Tax
The recently announced US tax reform, including significantly
lower US corporate tax rates, may provide long-term benefits for
the Group, but is not expected to have a material impact on the
adjusted earnings for the financial year to September 30, 2018.
AGM/Next Update
The company is holding its AGM at 9:30am on February 1. No
further comment on trading will be made at this meeting.
The results for the six months to March 31, 2018 will be
announced on May 17.
1 Total revenues include revenues from the Group's continuing
and discontinued operations.
2 Underlying revenues include revenues from the Group's
continuing and discontinued operations stated at constant exchange
rates, including pro-forma comparatives for acquisitions, and
excluding disposals and significant event timing differences.
January 31, 2018
END
For further information, please contact:
Euromoney Institutional Investor PLC
Colin Jones, Finance Director: +44 20 7779 8666; cjones@euromoneyplc.com
FTI Consulting
Charles Palmer/Emma Hall: +44 20 3727 1400; euromoney@fticonsulting.com
NOTE TO EDITORS
Euromoney Institutional Investor PLC (www.euromoneyplc.com) is
listed on the London Stock Exchange and is a member of the FTSE 250
share index. It is an international business-information Group
covering asset management, price discovery, data & market
intelligence, and banking & finance under brands including
Euromoney, Institutional Investor, BCA Research, Ned Davis Research
and Metal Bulletin. The Group also runs an extensive portfolio of
events for the telecoms, financial and commodities markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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