Euromoney sees advertising down, warns on 2012

The business to business data and publishing firm Euromoney says total revenues in the three months to the end of December increased by 11% over the same period of 2010, to hit £94.6m.

The group, which is behind titles like Institutional Investor and Metal Bulletin, emphasises that subscriptions now account for 50% of revenue.

Today's statement says that the volatility in financial markets during the summer of 2011 was followed by weakness in sales of advertising and, to a lesser extent, event sponsorship. Advertising revenues fell 13% between October and December versus the same period of 2010.

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Europmoney gets a lot of its income in dollars and is particularly affected by exchange rate movements between the dollar and sterling. However, the average sterling-dollar rate for the first quarter was $1.58, the same as 2010, and the impact of exchange rates on revenues was not significant.

Overall subscriptions rose 26%, sponsorship by 2% and delegates (at conferences) by 10%.

Net debt at December 31, 2011 was £104.8 million, a decrease of £14.4 million since the firm's financial year-end in September.

Ominously, Euromoney says "the board expects the outlook for revenues to be tougher in the second quarter" based on worries over the Eurozone and global growth.

Shares in Euromoney dropped 0.74% in early trading. Over the last 12 months the stock has fallen 4%.

BS