Euromoney Institutional Investor – interim management statement to July 24, 2013

Euromoney Institutional Investor PLC , the international publishing, events and electronic information group, has issued its Interim Management Statement for the period from April 1 to July 24, 2013.


Since reporting its interim results on May 16, 2013, trading has continued in line with the board’s expectations as set out in the interim results announcement.

Headline revenues for the quarter to June 30, 2013 increased by 2% to £113.5 million.  The group generates nearly two thirds of its revenues in US dollars and after adjusting for an average sterling-dollar rate for the third quarter of $1.53, against $1.60 a year ago, revenues at constant currency were unchanged.  The increase in revenues from the three small acquisitions completed earlier in the year was largely offset by timing differences on certain subscription accounts.

Subscription revenues increased by 4%, and by 1% at constant currency.  The rate of growth at constant currency was less than the 3% achieved in the second quarter due to delays in the receipt of a few subscription accounts which are recognised on a cash basis.  This timing difference is expected to reverse in the final quarter.  The 11% decline in advertising revenues was consistent with the trend seen over the previous 18 months with advertising from global financial institutions particularly weak.

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.  Despite the challenging markets, revenues from the group’s bigger events remained robust and the positive first half event revenue trends continued.  Sponsorship revenues increased by 6% at constant currency, partly due to the acquisition in April of CIE, the Australian provider of investment forums for the asset management industry.  Delegate revenues were unchanged.

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

Eurononey intrim Jul13


Click on the table for a larger view

Financial Position

Net debt at June 30 was £34.4 million against £38.1 million at March 31. The group’s strong operating cash flows for the quarter were offset by acquisition payments of £12.7 million, including the £9.9 million purchase of CIE, an interim dividend of £8.8 million, and other non-operating cash outflows of £6.4 million.  Movements in the US dollar exchange rate had no significant effect on net debt levels.


The broad trading background has not changed significantly since the interim results.  The outlook for US markets, and in particular the profitability of US financial institutions, has continued to improve.  However, European institutions remain focussed on tight cost control and compliance with a tougher regulatory environment while uncertainties persist over some emerging markets, particularly China, and the commodities sector.

July and August are the quietest trading months of the year and while the fourth quarter is the least significant for the group’s event businesses, recent advertising sales trends have been encouraging.  However, as usual at this time of the year, revenue visibility for September, which traditionally accounts for at least 20% of the group’s full year profit, is limited.

The group will continue to invest in technology, marketing and new products to achieve organic growth and focus on revenue synergies from its recent acquisitions.  Overall, trading remains in line with the board’s expectations.

UK, London

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