Euromoney Institutional InvestorPLC Trading update (6861L)
21 July 2017 - 4:00PM
UK Regulatory
TIDMERM
RNS Number : 6861L
Euromoney Institutional InvestorPLC
21 July 2017
EUROMONEY INSTITUTIONAL INVESTOR PLC
TRADING UPDATE
FOR THE PERIOD TO JULY 20, 2017
Euromoney Institutional Investor PLC ("Euromoney"), the
international business information and events group, today issues a
trading update for the period from April 1 to July 20, 2017.
Trading
Since reporting its interim results on May 18, trading has
continued in line with the board's expectations as set out in the
interim results announcement. Reported revenues for the quarter to
June 30 increased by 13% to GBP118.4m, reflecting both the benefit
from a favourable Sterling-US Dollar rate and the acquisition of
RISI in April. Underlying revenues, at constant exchange rates and
including pro-forma prior year comparatives for acquisitions and
excluding disposals, increased by 2%, continuing the positive trend
in event revenues highlighted in the interim results.
The following table shows the year-on-year revenue growth rates
for the third quarter on a reported and underlying basis.
Q3 FY17 vs Q3
FY16
------------------------ ------ ------ ----------------------
Q3 Q3
FY17 FY16 Reported Underlying
GBPm GBPm change change
------------------------ ------ ------ --------- -----------
Subscriptions/content 67.7 54.9 23% 1%
------------------------ ------ ------ --------- -----------
Advertising 10.0 8.8 13% (5%)
------------------------ ------ ------ --------- -----------
Sponsorship 23.4 19.5 20% 5%
------------------------ ------ ------ --------- -----------
Delegates 19.1 17.1 12% 2%
------------------------ ------ ------ --------- -----------
Other 0.9 0.7 30% 8%
------------------------ ------ ------ --------- -----------
Closed/sold businesses - 5.1 - -
------------------------ ------ ------ --------- -----------
FX losses on
forward contracts (2.7) (1.4) - -
------------------------ ====== ====== ========= ===========
Total revenues 118.4 104.7 13% 2%
------------------------ ------ ------ --------- -----------
Underlying subscriptions and content revenues increased by 1%.
The pricing, data and market intelligence division continues to
generate good growth, largely from Metal Bulletin, but this is
being offset by challenging conditions in the asset management
sector, in particular from the continued uncertainty around the
impact of MiFID II. Reported subscriptions and content revenues
increased by 23% to GBP67.7m, including GBP5.4m from RISI, the
leading price reporting agency for the global forest products
industry, which was acquired at the beginning of April. RISI has
been integrated successfully with the group's other price reporting
businesses, and is growing well.
Underlying advertising revenues continued to decline, reflecting
the long-term shift away from print advertising, albeit at a slower
rate than in the first half.
The third quarter is the most important of the year for the
event businesses and underlying event revenues (sponsorship and
delegates combined) increased by 4%. This partly reflects the
improved sentiment in the banking & finance and commodities
sectors which was highlighted last quarter, as well as a strategic
focus on building large, high margin events.
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 June 30 was $1.27 (Q3 FY16: $1.44) which
had a significant favourable impact on reported revenues for the
quarter (see table above).
The benefit from the sharp fall in the Sterling-US Dollar rate
post-Brexit will largely disappear in the final quarter of this
financial year. The average rate for this quarter was $1.32 in
2016.
Financial Position
Net debt at June 30 was GBP173.1m compared to GBP83.6m at March
31. The increase during the quarter reflects the GBP103.3m cost of
the RISI and Layer123 acquisitions and the payment of an interim
dividend of GBP9.4m, partly offset by the continued strong
operating cash flows.
Next Trading Update
Preliminary results for the year to September 30 will be
announced on November 23, 2017. The company expects to release a
pre-close trading update on September 28.
July 21, 2017
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 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-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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