Euromoney Institutional InvestorPLC Statement regarding Coronavirus COVID-19 (6905F)
11 March 2020 - 6:00PM
UK Regulatory
TIDMERM
RNS Number : 6905F
Euromoney Institutional InvestorPLC
11 March 2020
EUROMONEY INSTITUTIONAL INVESTOR PLC ("Euromoney")
Statement regarding Coronavirus COVID-19
11 March 2020
Euromoney, the international B2B information services provider
of essential information to global and specialist markets, today
updates the market on the impact of coronavirus (COVID-19) on its
business. Euromoney's priority remains the health and wellbeing of
our employees, customers and business partners.
In FY19, subscription revenue was 60% of total revenue and
revenue from events was 31% or GBP124m. Approximately 34% of FY19
events revenue was in Q3 and 22% in Q4, with the months of June and
September being particularly large. The Group has successfully run
events with revenues of approximately GBP42m in the five months
ending February 2020.
In common with other events operators, Euromoney has experienced
disruption across much of the world as a result of COVID-19 and the
restrictions that organisations and governments have placed on
travel or attending large gatherings. Euromoney has now made the
decision to cancel a number of events, and to postpone some until
later in the year. So far, we have cancelled 25 events with a
revenue impact of GBP3m and postponed 55 events, with nine moving
into FY21, with an additional FY20 revenue impact of GBP3m. The
overall impact on FY20 of these changes is therefore to reduce
revenue by GBP6m and to reduce operating profit by GBP5m, before
other mitigating cost savings.
Postponed or cancelled events include;
-- Capacity Middle East
-- Bauxite & Alumina Miami
-- WAN Summit New York
The financial profile for the remaining events from now to the
end of June 2020 is revenue of approximately GBP40m (GBP2m in the
remainder of March, GBP5m in April, GBP7m in May and GBP26m in
June). The gross profit from these events is expected to be around
GBP23m. The larger events have GBP7m of committed costs already
incurred, and therefore the gross margin impact of running no
events in this period would be approximately GBP30m. We anticipate
some of these events may be postponed into later months in FY20,
but we have not yet made firm decisions.
Our expectations of the impact on revenue and adjusted operating
profit are based on our current assessment and are subject to
change if COVID-19- related market disruption increases or
improves. We have made no changes at this stage to events
originally scheduled from July up to and including September.
Euromoney's financial position remains strong with net cash at
the end of February 2020 of GBP12.2m and unused committed
facilities of GBP240m.
Management will host a short call for analysts and investors at
8:30am today with a presentation available on the Euromoney
website, www.euromoneyplc.com . Dial in details: +44 (0)330 336
9411 Code: 4653517
For further information, please contact:
Euromoney Institutional Investor PLC
Wendy Pallot, Chief Financial Officer: +44 20 7779 8866;
wendy.pallot@euromoneyplc.com
Chris Collett, Investor Relations: +44 (0)20 7779 8636;
chris.collett@euromoneyplc.com
FTI Consulting
Charles Palmer / Jamie Ricketts / Amy Hurnell / Jamille Smith:
+44 20 3727 1000; euromoney@fticonsulting.com
NOTE TO EDITORS
Euromoney is a global information business providing essential
B2B information to global and specialist markets. Euromoney
provides price discovery, market intelligence and events across our
segments. Euromoney is listed on the London Stock Exchange and is a
member of the FTSE 250 share index. ( www.euromoneyplc.com )
LEI number: 213800PZU2RGHMHE2S67
Ends
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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