TIDMERM
RNS Number : 1468V
Euromoney Institutional InvestorPLC
26 January 2017
EUROMONEY INSTITUTIONAL INVESTOR PLC
TRADING UPDATE
FOR THE PERIOD TO JANUARY 25, 2017
Euromoney Institutional Investor PLC ("Euromoney"), the
international business information and events group, today issues a
trading update for the period from October 1, 2016 to January 25,
2017 in advance of its Annual General Meeting to be held at 9.30am
on January 26.
Trading
Since reporting its FY16 results on November 24, 2016, trading
has continued largely in line with the board's expectations as set
out in the preliminary results announcement, and the challenging
market conditions and political uncertainty have continued into the
first quarter of the new financial year. Reported revenues for the
three months to December 31 increased by 6%, largely as a result of
a favourable Sterling-US Dollar rate. Underlying revenues, which
exclude the impact of currency movements and acquisitions and
disposals, fell by 5%, mostly due to the impact of the group's
decision in the second half of last year to restructure some of its
event and training activities.
The following table shows the year-on-year revenue growth rates
for the first quarter on a reported and underlying basis.
Q1 FY17 vs Q1 FY16
------------------------ -------- -------- ----------------------
Q1 FY17 Q1 FY16 Reported Underlying
GBPm GBPm change change
------------------------ -------- -------- --------- -----------
Subscriptions/content 63.5 52.7 20% 1%
------------------------ -------- -------- --------- -----------
Advertising 8.9 8.7 2% (16%)
------------------------ -------- -------- --------- -----------
Sponsorship 9.8 9.3 5% (14%)
------------------------ -------- -------- --------- -----------
Delegates 15.1 14.4 5% (14%)
------------------------ -------- -------- --------- -----------
Other 0.4 0.4 - (7%)
------------------------ -------- -------- --------- -----------
Closed/sold businesses 1.3 4.4 - -
------------------------ -------- -------- --------- -----------
FX losses on forward
contracts (3.8) - - -
------------------------ ======== ======== ========= ===========
Total revenues 95.2 89.9 6% (5%)
------------------------ -------- -------- --------- -----------
The group continues to invest in strategic initiatives, most
notably in BCA Research and Metal Bulletin, to drive new product
development in the asset management and pricing, data and market
research segments. However, the underlying rate of growth in
subscription and content revenues was restricted to 1% this quarter
as some of the group's asset management activities felt the impact
of the cost and fee pressures facing the sector.
The 16% underlying decline in advertising revenues, which are
especially bank dependent, is consistent with the long-term
structural headwinds for print advertising, which now accounts for
less than 10% of group revenues.
The first quarter is the one of least activity for the events
businesses. Underlying sponsorship and delegate revenues both
decreased by 14% which was largely as expected and reflects the
strategic actions taken in FY16 to consolidate some of the group's
event activities and cut out a number of low margin events and
unprofitable training courses.
Impact of Currency
The group generates approximately two thirds of its revenues and
profit before tax in US dollars. The average Sterling-US Dollar
rate for the quarter to December 31 was $1.26 (Q1 FY16: $1.51)
which had a significant favourable impact on the reported revenues
for the quarter (see table above).
For FY16 the average Sterling-US Dollar rate was $1.41 and each
one cent movement in the rate would have a translation impact on
FY17 profits of approximately GBP0.6m on an annualised basis.
Disposals
As part of its active portfolio management strategy the group
disposed of two businesses during the first quarter: HedgeFund
Intelligence, the hedge fund publishing business, and its remaining
Institutional Investor print newsletters and their related data
products.
Financial Position
Net cash at December 31, 2016 was GBP95.3m, an increase of
GBP11.5m since the year-end. Cash generation remains strong,
although the quarter to December is traditionally the one with the
lowest operating cash flows because of the payment of annual
incentives in the period.
Share Buyback
Following shareholder approval at the General Meeting held on
December 29, 2016, on January 6, 2017 the Company completed the
purchase for cancellation of 19,247,173 ordinary shares in the
Company from its then majority shareholder, Daily Mail and General
Trust group ("DMGT"), at a price of GBP9.75 per share. Following
this transaction, Euromoney had 109,067,370 ordinary shares in
issue and DMGT's interest in Euromoney was reduced to 49.1%.
The share buyback cost of GBP187.7m was funded using GBP70m of
the group's net cash and new bank term loans of GBP117.7m. In
addition to the term loans, the group has put in place an GBP80m
five-year revolving credit facility to fund its acquisition
strategy. The expected cost of these facilities for the rest of
FY17 is approximately GBP3m.
Board
In a separate announcement, the board has confirmed the
appointment of David Pritchard, a non-executive director, as the
Company's Senior Independent Director.
AGM/ Next Update
The company is holding its AGM at 9:30am on January 26. No
further comment on trading will be made at this meeting.
The results for the six months to March 31, 2017 will be
announced on May 18.
January 25, 2017
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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