Euromoney expects half year decline in revenue but rise in profit

Euromoney Institutional Investor has reported that trading since the end of January has continued to be in line with its expectations, but warned that due to the on-going difficulties in the Eurozone total revenues for the half year ended March 31st are expected to show a headline decrease of around one per cent compared to the same period in 2012.

Euromoney Institutional Investor has reported that trading since the end of January has continued to be in line with its expectations, but warned that due to the on-going difficulties in the Eurozone total revenues for the half year ended March 31st are expected to show a headline decrease of around one per cent compared to the same period in 2012.

This is primarily due to a decline in non-subscription revenues, which are expected to have decreased due to timing differences on events.

Subscriptions, which account for approximately half the group's revenues, are expected to be in line with the level achieved in 2012.

Adjusted pre-tax profit for the period is expected to be no less than £51m, up from £48.6m in 2012.

Chairman Richard Ensor said: "The uncertainties over Europe remain, evidenced most recently by the problems in Cyprus, as does the general concern over the financial services industry worldwide. Global financial institutions continue to take tough measures to cut costs, particularly people, and strengthen their balance sheets."

Debt at the period end is expected to be no greater than £45m, compared to £30.8m at the end of September.

The Chairman explained: "The increase in debt since the year end reflects the acquisitions of TTI/Vanguard at the end of December (£5.0m) and Insider Publishing on March 19th (£16.8m); the payment of a final dividend for financial year 2012 of £18.3m (the final dividend for 2011 was mostly satisfied through a scrip offer); and a cash payment including taxes of £9.2m following the vesting of awards under the CAP, the group's long-term incentive plan.

"The group's operating cash flows are traditionally weighted towards the second half."

NR

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