Euromoney buoyed by online migration

Euromoney Institutional Investor, the international publishing and events group, says it is successfully migrating to online offerings as subscription growth outpaces advertising decline.

The company, which publishes Euromoney and Metal Bulletin, saw revenues in the six months to the end of March increase by 13% over the prior year to £189.4m. Underlying revenues, excluding acquisitions, increased by 5%.

Headline subscription revenues (including acquisitions) increased by 22% and accounted for 53% of the group's revenues for the period compared to 49% in the prior year. This is crucial, Euromoney does not want to be caught relying on print advertising revenues which dropped 9% during the half year.

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Underlying subscription revenues (excluding acquisitions) increased by 7%, while the adjusted operating margin was unchanged at 30%.

Advertising revenues fell 9% on the prior year to £24.9m

The company makes great play of net debt now at £88.5m, below annual underlying earnings and providing headroom for more acquisitions, which Euromoney makes clear is a key part of its strategy.

Commenting on the first half results, Chairman Padraic Fallon said: "The company delivered strong organic growth, as well as the benefits of acquisitions. Research and data revenue growth of 33% highlights the group's progress to an online information business.

"The outlook for financial markets still looks tough, particularly in the Eurozone. In contrast, sentiment in US markets is improving, and emerging markets remain in reasonable health as measures to control inflation in key markets such as China appear to be working. Overall trading remains in line with the board's expectations."

The shares were flat in early trading but have risen 17.7% so far this year.

BS