TIDMERM TIDMDMGT
RNS Number : 1421L
Euromoney Institutional InvestorPLC
29 September 2016
EUROMONEY INSTITUTIONAL INVESTOR PLC
PRE-CLOSE TRADING UPDATE
SEPTEMBER 29, 2016
Euromoney Institutional Investor PLC ("Euromoney"), the
international business information and events group, today issues a
pre-close trading update ahead of the announcement of its results
for the year to September 30, 2016.
Trading
Since issuing its trading update on July 21, 2016, trading has
continued in line with the board's expectations, although financial
markets have been subject to increased volatility and uncertainty
following the UK's Brexit vote in June. Underlying revenues for the
fourth quarter, which exclude the impact of currency movements and
acquisitions and disposals, are expected to have declined by 5%
from the same period last year, largely due to the group
intentionally reducing the number of commodity events and training
courses run. Reported revenues for the quarter are expected to show
a 2% increase, largely as a result of more favourable exchange
rates.
Underlying subscription revenues for the fourth quarter are
expected to have increased by 2%, a further improvement on the 1%
underlying increase in the third quarter, as the group starts to
see the benefits from the strategic initiatives being taken around
new products, pricing and sales. Underlying advertising revenues,
which are especially bank dependent, are expected to show a decline
of 8% for the quarter, a little better than the third quarter but
still broadly consistent with the long-term trend for
advertising.
After a robust third quarter for events, particularly in the
areas of finance and telecoms, underlying sponsorship and delegate
revenues are expected to fall by 13% in the final quarter. Although
the event numbers benefit from easier comparatives after the sharp
decline in commodity markets in 2015, sponsorship and delegate
revenues have declined as the group took actions earlier in the
year to cut the number of commodity events and eliminate
unprofitable training activities.
Reported total revenues for the year to September 30, 2016 are
expected to show a 1% decrease on last year, and an underlying
decrease (after adjusting for a biennial event in the first half)
of 4%.
The group expects to announce an adjusted profit before tax* of
no less than GBP100 million for the year to September 30, 2016
(2015: GBP107.8 million).
Financial Position
At current exchange rates, group net cash at September 30, 2016
is expected to be no less than GBP80 million, against GBP83 million
at June 30. Significant non-operating cash flows since June 30
include the acquisition of FastMarkets for GBP13 million at the end
of August.
Next Trading Update
More details will be provided with the year-end results which
will be announced on the morning of November 24, 2016, followed by
an analyst presentation.
Changes to Segmental Reporting
Following the new strategy presented at the investor day in
March 2016, the group's activities are now focussed around four key
markets:
- Asset management
- Pricing, data and market intelligence
- Banking and finance
- Commodity events
The group's segmental reporting for the year to September 30,
2016 will be revised to reflect this new structure. Previously
published segmental data for financials years 2014 and 2015 has
been restated on this new basis and is included in the Appendix to
this announcement.
* Adjusted profit before tax is profit before tax, amortisation
of acquired intangible assets, exceptional items, and net movements
in acquisition deferred consideration and acquisition
commitments.
END
For further information, please contact:
Euromoney Institutional Investor PLC
Andrew Rashbass, CEO: +44 20 7779 8845; andrew.rashbass@euromoneyplc.com
Colin Jones, Finance Director: +44 20 7779 8666; cjones@euromoneyplc.com
FTI Consulting
Charles Palmer/Emma Appleton: +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-to-business media
group focused primarily on the asset management, banking and
commodities sectors under brands including Euromoney, Institutional
Investor and Metal Bulletin. It is a leading provider of economic
and investment research and data under brands including BCA
Research, Ned Davis Research, and the emerging market information
providers, EMIS and CEIC. The group also runs an extensive
portfolio of events for the financial and commodities markets. Its
main offices are in London, New York, Montreal, Hong Kong and
Sofia, and more than a third of its revenues are derived from
emerging markets.
EUROMONEY INSTITUTIONAL INVESTOR PLC
APPENDIX TO PRE-CLOSE TRADING UPDATE
CHANGES IN SEGMENTAL REPORTING
Following the new strategy presented at the investor day in
March 2016, the group's activities are now focussed around four key
markets. The group's segmental reporting for the year to September
30, 2016 will be revised to reflect this new focus. The segments
and the key brands within each segment are as follows:
Asset management: Institutional Investor, BCA Research,
Ned Davis Research,
Pricing, data
and market Metal Bulletin, CEIC, EMIS, TelCap,
intelligence: Insurance Insider, Legal Media
Banking and Euromoney, Global Capital, IMN
finance:
Commodity events: Metal Bulletin, Mining Indaba
Previously published segmental data for financials years 2014
and 2015 has been restated on the new basis and is set out below.
The revised segmental reporting does not have any effect on the
group's previously reported total revenues, operating profit,
adjusted PBT or earnings per share.
Adjusted
Subscriptions Total operating
and content Advertising Sponsorship Delegates Other revenue(1) profit
2015 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------------- ------------- ----------- ----------- --------- ----- ----------- ----------
Asset management 119.9 14.1 13.2 3.3 0.3 150.8 52.0
Pricing,
data and
market intelligence 84.5 15.9 11.0 16.2 1.4 129.0 41.2
Banking and
finance 10.4 11.2 27.9 28.2 2.8 80.5 17.3
Commodity
events - - 6.4 22.4 0.8 29.6 8.9
------------- ----------- ----------- --------- ----- ----------- ----------
214.8 41.2 58.5 70.1 5.3 389.9 119.4
Foreign exchange 0.6 (1.8)
Sold/closed
businesses 12.9 4.2
Corporate
costs - (17.6)
----------- ----------
Total 403.4 104.2
----------- ----------
Adjusted
Subscriptions Total operating
and content Advertising Sponsorship Delegates Other revenue(1) profit
2014 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------------- ------------- ----------- ----------- --------- ----- ----------- ----------
Asset management 109.1 13.9 13.4 4.0 0.5 140.9 51.8
Pricing,
data and
market intelligence 81.1 15.7 9.0 14.9 1.2 121.9 39.4
Banking and
finance 10.3 14.2 28.5 29.2 4.3 86.5 22.6
Commodity
events - - 5.1 22.5 0.7 28.3 8.4
------------- ----------- ----------- --------- ----- ----------- ----------
200.5 43.8 56.0 70.6 6.7 377.6 122.2
Foreign exchange 2.9 1.4
Sold/closed
businesses 26.1 10.0
Corporate
costs - (13.8)
----------- ----------
Total 406.6 119.8
----------- ----------
(1) Revenue by type has been updated for the businesses sold
during FY2016 and content-related revenue previously included in
other has been reclassified to subscriptions and content.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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