Fusion Corporate Partners

Euromoney Institutional Investor PLC, the international publishing, events and electronic information group, has announced its Interim Management Statement for the period from April 1 to July 24, 2012.

Highlights

• Total revenues for the quarter to June 30, 2012 increased by 9% to £111.0 million, driven by continued growth from the group’s research and data businesses.  Underlying group revenues, excluding the impact of last year’s acquisition of Ned Davis Research, increased by 3% (and by 1% at constant exchange rates).
• Underlying subscription revenues increased by 6% (and by 5% at constant exchange rates). Subscription growth continues to be generated by the group’s premium electronic information services such as BCA Research, the independent macro economic research house, and CEIC Data, the emerging markets data provider. Headline subscription revenues, including NDR, increased by 21%.  Advertising revenues followed a similar trend to the second quarter – advertising from global financial institutions remained weak but this was offset by growth from the energy sector and emerging markets.
• The third quarter is the most important of the year for the event businesses, with many of the group’s largest events held during this period.  While the bigger events put in a robust performance, markets became more challenging as the quarter progressed, particularly for smaller events.  As a result, sponsorship revenues for the quarter fell by 7% while delegate revenues remained steady.
• The group generates nearly two thirds of its revenues in US dollars and movements in the sterling-dollar rate can have a significant impact on reported revenues.  However, the average sterling-dollar rate for the third quarter was $1.60, against $1.64 a year ago, and the impact of exchange rates on revenues in the third quarter was not significant.

The following table summarises the year-on-year revenue changes for the third quarter at both headline rates and at constant exchange rates:

Financial Position

Net debt at June 30 was £51.3 million, a reduction of £37.2 million since March 31, reflecting the group’s strong operating cash flows in the period.  The third quarter is traditionally the strongest of the year because of the importance of the cash flows of the event businesses.  In addition there were no significant non-operating cash flows in the period and movements in the US dollar exchange rate had no significant effect on net debt levels.

UK, London

Related articles

• Euromoney Institutional Investor – trading update – half year profits of not less than £47M Posted on April 17, 2012
• A Fusion Deal: International grain trading conferences, Global Grain Geneva and Global Grain Asia, sold to Euromoney Institutional Investor Posted on February 29, 2012
• Euromoney Institutional Investor to acquire Ned Davis Research Group for £69M Posted on June 21, 2011
• Euromoney Institutional Investor PLC acquires Arete Consulting Posted on August 13, 2010
• Euromoney sells EIC to Broadfern September 2007

Informa has announced its half year results for the Six Months Ended 30 June 2012

Financial Highlights

• Adjusted operating profit growth of 0.6% to £160.1m; 0.3% on an organic basis
• Improved margin – adjusted operating margin 25.8% (H1 2011: 25.1%)
• Strong cash flow – cash conversion rate increased to 76% (H1 2011: 56%)
• Revenue decline of 2.4% (organic decline of 1.2%) – proactive reduction in marginal product.
• Statutory loss before tax of £27.4m (H1 2011: £66.5m profit) – reflecting impairment charge of £80.0m and losses on disposal of £24.4m relating to European Conference businesses.
• Earnings increased – adjusted diluted earnings per share growth of 3.4% to 18.3p (H1 2011: 17.7p)
• Dividend increased – interim dividend increased to 6.0p (H1 2011: 5.0p)
• Net debt/EBITDA ratio of 2.3 times (H1 2011: 2.5 times)

Operational Highlights 

• Academic – organic revenue growth of 3.7%
• Total cost savings delivered at PCI of £12m
• 9 new large events run in H1
• Forward bookings on leading events remains strong
• Restructure of conference portfolio to reflect prevailing market conditions in Europe
• 20% of revenue from emerging markets (H1 2011: 19%)

Commenting on the first half results and future prospects, Peter Rigby, Chief Executive, said, “Overall, we have made a solid start to the year and are pleased with our performance to date. With our flat structure, experienced local management and focus on operating profit we continue to deliver good financial performance and earnings growth. In addition, high cash flow conversion continues to support our progressive dividend policy. Global economic conditions show no signs of sustained improvement. We have become used to operating in this environment and are actively managing the portfolio to concentrate on our areas of strategic focus. The business is in better shape as a result and we are well positioned for growth when an economic recovery occurs.  We are encouraged by the product launches coming in the second half of the year as well as our recent Canadian acquisition. We are making good progress on a number of growth initiatives including geographic expansion, across Informa which gives the Board confidence in meeting its expectations for the full year and the Group’s future prospects.”

UK, London

Related articles:

• A Fusion Deal: Fertilizer market information and analysis business Fertecon sold to Informa Group Posted on February 28, 2012
• Informa acquires Brasil Trade Shows Partners Participacoes S.A. & Ibratexpo Feiras e Eventos Ltda Posted on June 14, 2011